Build-to-Rent Developments Offer New Affordability Options for Wollongong Tenants

According to recent data, the number of build-to-rent developments in Wollongong has increased by 25% over the past year, with several major projects underway in the city's CBD and surrounding suburbs.

This surge in build-to-rent developments matters now because it offers a new affordability pathway for tenants who are struggling to enter the housing market. With the median house price in NSW hovering around $860,000, many would-be buyers are being priced out of the market, forcing them to rent for longer. Build-to-rent developments, which are designed specifically for renting, offer a range of benefits, including security of tenure, quality amenities, and predictable rent increases.

In Wollongong, several organisations, including the University of Wollongong and the Wollongong City Council, are working to promote affordable housing options, including build-to-rent developments. For example, the council's Wollongong Housing Strategy 2020-2030 outlines a range of initiatives aimed at increasing the supply of affordable housing in the city, including incentives for developers to build rental properties. In suburbs like Fairy Meadow and Thirroul, build-to-rent developments are being built along streets like Elliotts Road and Lawrence Hargrave Drive, offering tenants easy access to local amenities like the Fairy Meadow beach and the Thirroul train station.

Local Data and Evidence

According to data from the NSW Valuer-General, the median rent for a three-bedroom house in Wollongong is around $580 per week, while the median rent for a two-bedroom apartment is around $450 per week. In contrast, build-to-rent developments are offering rents that are competitive with these prices, but with the added benefits of security of tenure and quality amenities. For example, a recent build-to-rent development on Crown Street in the Wollongong CBD is offering two-bedroom apartments for rent at around $420 per week, including access to a range of amenities like a gym, pool, and community garden.

As the build-to-rent sector continues to grow in Wollongong, tenants can expect to see a range of new developments and initiatives emerge. For example, the NSW Government's Affordable Housing Strategy 2021-2025 outlines a range of initiatives aimed at increasing the supply of affordable housing in the state, including incentives for developers to build rental properties. In practical terms, this means that tenants can expect to see more build-to-rent developments being built in suburbs like Wollongong, offering a range of benefits and amenities that are not always available in traditional rental properties. As the market continues to evolve, it will be important for tenants to do their research and understand the options that are available to them, including build-to-rent developments and other forms of affordable housing.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.