Australia’s living sectors are no longer on the fringe. Build to Rent, purpose-built student accommodation (PBSA), co-living and land lease communities are now recognised as critical parts of the national housing solution.
Momentum is building, but can these models scale? That’s the question explored in FuturePlace’s new report, ‘Building Momentum: Progress and Priorities for Australia’s Living Sectors’. Based on in-depth interviews with leaders across the sector, it highlights what’s working, where friction remains, and what needs to shift to unlock national delivery.
Download the full report here to explore the insights driving this conversation.
Living sector models gaining market maturity
Across the living sectors, we’re seeing real traction:
PBSA is rebounding, with international enrolments hitting 566,000 in 2024 and building approvals nearly doubling year-on-year.
Build to Rent is gaining maturity, with developers adopting fund-to-completion models and a growing public awareness of the asset class.
Land lease communities continue to perform strongly, supported by policy changes in NSW and a solid base of demand from downsizers and retirees.
Co-living models are becoming more flexible, with PBSA operators repurposing their expertise to meet new use cases.
These developments are reinforced by policy shifts such as the MIT withholding tax reform, and institutional appetite is showing early signs of recovery.
“More institutional capital will come to Australia. More activity in Sydney than Melbourne. Tailwinds for townhouses and house-and-land. Green shoots for single-family housing (SFH).”
Luke Mackintosh, BDO
Systemic friction is slowing the sector
Despite notable momentum, systemic barriers continue to limit the living sector’s ability to scale. Progress is being made, but critical structural issues are stalling delivery, discouraging domestic investment, and inflating risk.
Domestic capital remains untapped
While global investors are actively deploying capital into PBSA and Build to Rent, Australia’s booming superannuation sector is still largely absent. Lack of index inclusion and limited familiarity with the asset class make it difficult for funds to justify exposure.
“We manage $13bn in assets from global institutional capital, yet none comes from Australian superfunds.
“With their approximate $3.4tn in capital, it’s a missed opportunity that more isn’t directed into the PBSA sector.”
Anouk Darling, CEO, Scape
Policy complexity is undermining investment confidence.
Australia’s tax and planning environment is highly fragmented, with varying surcharges, eligibility rules and approval timelines across states. These inconsistencies make national investment strategies difficult to execute and reduce the appeal of local projects compared to global alternatives.
“In the UK, you don’t really discuss tax until a deal is well-progressed. In Australian residential, tax is half the conversation upfront.”
James Greener, Charter Hall
Feasibility challenges are compounding
Rising construction costs, prolonged planning delays and flawed assumptions in financial modelling, such as applying Build to Sell metrics to Build to Rent, are eroding project viability. Even well-located sites can’t get off the ground if the numbers don’t work.
“You can have the best-located project in the world, but if the numbers don’t work, it won’t get built.”
James Greener, Charter Hall
In short, the fundamentals are strong but without structural reform and capital certainty, many high-potential projects will remain stuck at the starting line.
What industry leaders say must change
Despite growing interest and isolated policy wins, Australia’s living sectors still face structural barriers that are limiting investment and slowing delivery.
The Building Momentum report outlines five policy shifts repeatedly raised by senior leaders across development, investment and operations:
Index inclusion for Build to Rent and PBSA, which would allow super funds to allocate capital under existing mandates, unlocking billions in potential domestic investment.
Harmonised tax treatment, including the removal of foreign investor surcharges and consistent GST rules across jurisdictions, to restore deal viability and attract long-term capital.
Streamlined planning pathways, with faster, nationally aligned approval processes to reduce risk and bring projects to market sooner.
Modernised tenancy laws, particularly around Residential Tenancy Acts, to reflect the unique operating models of purpose-built housing and avoid regulatory mismatches.
Formal recognition of rental housing as critical infrastructure, ensuring Build to Rent, PBSA, co-living and land lease communities are embedded in national and state housing strategies.
“The private sector is here to help and solve for housing. We need to work together.”
Anouk Darling, CEO, Scape
Keep the momentum going
The insights in ‘Building Momentum: Progress and Priorities for Australia’s Living Sectors’ reflect conversations happening across the country, from boardrooms to building sites. Drawing on interviews with leaders in Build to Rent, PBSA, co-living and land lease communities, the report captures where real progress is being made and where barriers persist.
If you’re working in housing, planning, investment or policy, this report offers a clear snapshot of where the sector stands and what it needs next.
Download the full report to explore the data, quotes and strategies shaping the future of housing in Australia. For those looking to take the conversation further, these themes will also be explored live at the second annual Living Sectors Summit, held on 13 -14 November 2025 at the Hilton, Sydney. The Summit brings together decision-makers and disruptors to turn policy intent into real-world delivery.