A pathway to home ownership for ‘generation rent’

Over a third of Australians rent, in an increasingly competitive private rental market that is one of the least secure in the world. This situation is widening economic and intergenerational inequity. Many Australians are simply locked out of the wealth-creation and security benefits associated with home ownership. A new model being developed by UTS researchers aims to change that. 

Leveraging the Australian Government’s recent ‘Build to Rent’ legislation, researchers from the Institute for Sustainable Futures and Jumbunna Institute are developing a ‘Build to Rent to Own’ model that would allow a renter in a development to build an ownership stake in the entity over time. This essentially provides the benefits of home ownership without the high barriers to entry. Without needing a deposit or bank loan, lower to middle-income renters have the chance to build equity and enjoy the lifetime security and neighbourhood connections that come with home ownership. A successful model can deliver individual and societal benefits. The research is supported by a grant from the James Martin Institute’s Policy Challenge, a program supporting research that tackles the biggest policy challenges in NSW.   
 
Our researchers are engaging widely with governments and the financial, housing, and property development sectors to help build and test the model. They are particularly exploring the potential for values-aligned investment by Australian superannuation funds representing the workers struggling to afford housing. A key consideration is testing the model in a range of different community contexts and locations, including for First Nations communities.