Recent independent research commissioned by the Real Estate Institute of Victoria (REIV), surveying 1,000 Victorian adults, has revealed a clear and consistent message: current tax and regulatory settings are widely seen as discouraging investment in the rental market.
For the build-to-rent (BTR) sector and professional property managers, the findings reinforce what is already being felt across the market — increasing pressure on supply, rising investor caution, and growing demand for more stable, long-term housing solutions.
Strong community consensus on investment barriers
The research shows overwhelming alignment across both renters and property investors:
For BTR operators, these results are particularly significant. Reduced private investment in traditional rental stock can tighten supply further, increasing reliance on institutional-grade rental housing models.
Supply risk signals emerging from investor behaviour
One of the most important findings for the rental sector is the potential for supply contraction:
This indicates not just sentiment frustration, but a real risk of capital movement away from Victorian rental housing.
For BTR providers, this reinforces the importance of long-term, stable ownership structures that are less sensitive to individual investor withdrawal cycles.
Tax reform and investor incentives remain key levers
The research also highlights where policy changes could materially shift investment behaviour:
These findings suggest that both supply-side and demand-side interventions are shaping housing outcomes — and that tax settings remain one of the most powerful tools influencing market behaviour.
What this means for Build-to-Rent operators
For the BTR sector, these insights reinforce several key strategic realities:
1. Institutional rental housing is becoming more important
As individual investor participation potentially declines, demand for professionally managed, large-scale rental housing is likely to grow.
2. Stability is a competitive advantage
BTR assets, with long-term ownership and management models, are better positioned to withstand policy-driven volatility compared to fragmented investor-owned stock.
3. Tenant demand is being shaped by ownership constraints
With home ownership barriers (such as stamp duty) remaining high, renters are more likely to stay in the rental market longer — increasing demand for quality, long-term rental options.
4. Policy risk is now a core investment consideration
Tax and regulatory settings are no longer background factors — they are actively influencing capital allocation decisions.
Regional sentiment adds another layer
The research also shows a geographic divide:
This suggests that investment confidence challenges are not confined to metropolitan markets and may be even more pronounced in regional areas.
The findings send a clear message ahead of future policy decisions: without recalibration of tax and regulatory settings, Victoria risks further constraining rental supply at a time when demand remains structurally high.
For the build-to-rent sector, however, this environment also reinforces a growing opportunity — to provide stable, professionally managed rental housing in a market where traditional supply pathways are under increasing pressure.
Source: REIV Melbourne
