Can Build-to-Rent work here?
Very common in Europe, build-to-rent is a trend that has now taken hold in the UK and parts of the US. This refers to developments specifically designed and built for renters. The developer or major investor, maintains ownership of all the properties rather than selling them to individual buyers.
The Australian Financial Review (AFR) recently explored the possibility of Build-to-Rent taking off in Australia and extensively interviewed our Principal, Joe Russo for the article.
Mr Russo has first-hand experience with the concept. Caydon recently entered the US market and our first project will be a build-to-rent (or multifamily) 27 level tower in Houston with 360 apartments.
While he would love for the model to be viable in Australia, Joe Russo doubts it is possible. He feels Australia does not have the “deep finance market” or the “deep pool of buyers” available in the US. Mr Russo also believes the high desire for Australians to own their own home is another factor to be taken into consideration.
“Americans are happier with long term rentals”, he said, “because they don’t maintain the same connections with their home towns or suburbs as we tend to in Australia”.
We have acquired other sites in Houston for future multi-family projects and Joe Russo told the AFR he was excited about the prospects in America’s fourth largest city.