MASP calls for adaptable BTR housing solutions to meet regional affordability crisis

The Mallee Accommodation and Support Program (MASP) is calling on the Federal Government and property developers to adapt the Build-To-Rent (BTR) initiative for regional communities, in an effort to address the growing housing crisis outside metropolitan areas.

MASP CEO Charmaine Calis believes the BTR model—where developers maintain ownership of properties while leasing them to tenants—could be modified to better suit the needs of country towns and regional centers.

"Incentives to provide housing solutions fit-for-purpose for regional living, not necessarily those larger scale apartment settings typically seen in metro areas, could go a long way to entice developers to look at affordable solutions in places like the Mallee," Mrs. Calis said.

The Federal Government passed legislation in late 2024 requiring at least 10 percent of BTR developments to be dedicated to affordable housing.[MASP supports Built-To-Rent, calls for wider application] Additional regulations finalised in early April include a minimum tenancy of five years, with affordable tenancies defined as being available to people on moderate and low incomes.

The regulations also specify that at least 20 percent of the affordable tenancies will be available to low-income earners where rents are capped below 74.9 percent of the market value or 30 percent of household income, whichever is lower.[REIA Build-to-Rent Report 2024 (PDF)]

While BTR developments have proven successful overseas, they're relatively new to Australia and typically feature large-scale apartment complexes in urban settings—a model that may not translate directly to regional needs.

The housing shortage in the region has reached critical levels. According to MASP, the Victorian Housing Register recorded over 500 applicants on the Priority Access List for the Mildura District alone as of December, with nearly 450 more on the Register of Interest.

"This would help alleviate the incredible stress on the system," Mrs. Calis said. "Something must be done."

MASP has previously advocated for diverse housing solutions through its submission to the Victorian Legislative Assembly's inquiry into regional housing supply.[MASP Submission to the Inquiry into the Supply of Homes in Regional Victoria (PDF)] The organisation emphasised the importance of accommodating various living arrangements for different individuals and families seeking social and affordable housing.

"We welcome any measures that would help increase housing supply and cater for the most vulnerable in our community," Mrs. Calis added.

As regional communities continue to grapple with housing affordability and availability, MASP's call for adaptable BTR models represents one potential pathway to addressing these persistent challenges.[Rent.com.au Regional Rental Market Snapshot]