Build to Rent moves into Regional and Coastal Markets

September 30, 2025

As housing affordability continues to challenge communities across Australia, Build-to-Rent (BTR) is no longer just a capital city solution. A growing number of regional and coastal towns are being eyed for BTR developments, driven by changing population trends, demand for long-term rental stability, and new government incentives.

Why Regional BTR is Gaining Momentum

Build-to-Rent projects, purpose-built residential developments retained by a single owner and operated as long-term rental communities, are gaining traction outside traditional metro strongholds like Sydney and Melbourne.

Key drivers include:

  • Migration trends: More Australians are relocating to regional and coastal areas, often in search of affordability and lifestyle.
  • Rental pressure: Vacancy rates remain critically low in many non-metro areas.
  • Government support: Recent federal and state incentives are making BTR more viable, including tax breaks and planning fast-tracks for eligible developments.

Notable Projects Underway

Several BTR projects have recently launched or are in planning across NSW regional hubs:

  • Bomaderry (South Coast, NSW) – Landcom is developing around 60 BTR apartments, with 20% set aside as affordable housing. Located close to transport and town amenities, this is part of a broader state government pilot.
  • East Lismore (Northern Rivers, NSW) – Another Landcom-led project aims to deliver 50+ BTR units, supporting a community still recovering from housing loss due to natural disasters.

These developments are designed to provide longer-term rental stability with modern amenities — a new offering in markets historically dominated by private landlords and short-term leases.

What it means for Regional Property

For investors and developers, regional BTR offers a new asset class with long-term income potential, particularly in high-demand areas with stable population growth. For renters, it introduces security of tenure, professionally managed housing, and often, better-quality amenities than traditional rentals.

The Road Ahead

As governments refine policy and funding around affordable and market-rate rental housing, we expect to see more BTR expansion beyond the capital cities — particularly in fast-growing coastal towns, regional centres, and areas affected by rental stress.

At BTR Group, we’re closely tracking these developments. Whether you’re a property investor, developer, or simply looking to understand how these shifts impact your local market, our team is here to help.