As Australia’s build-to-rent (BTR) sector grows, it is changing what renters and investors expect from housing, according to a new report from the Green Building Council of Australia (GBCA).

GBCA launched Keys to Change: Unlocking better, greener Build-to-Rent housing at its TRANSFORM 2026 conference last week. The report finds more than a third of Australia’s BTR pipeline is already registered to achieve Green Star ratings. This amounts to more than 50 BTR projects across 16,400 apartments.

“This momentum points to a new, scalable way to deliver energy efficient, high-quality rental housing in Australia,” says GBCA chief executive officer Davina Rooney.

‘Investors prioritise quality, efficiency and durability’

Compared with build-to-sell housing, a key point of difference for BTR are assets are designed to be held for decades. That long-term horizon shifts investors’ approach to cost, risk and value, the report notes.

“Institutional investors helped shape sustainability expectations in the office market – and these same institutional investors are now backing BTR at scale,” Rooney says. “They’re seeking long-term value, operational excellence and verified sustainability. This has driven a sharp uptake in Green Star registrations for residential buildings.”

Property Council of Australia CEO Mike Zorbas agrees.

“The Build-to-Rent sector is growing rapidly as investors respond to housing supply shortages and renters demand high-quality, sustainable and secure homes,” Zorbas says. “Build-to-rent communities are held for the long term and investors prioritise quality, efficiency and durability. That’s where Green Star can play a leading role.”

Scaling potential with Green Star

BTR backed by institutional investment currently comprises less than one percent of Australia’s residential apartment market. But GBCA, informed by NABERS modelling, estimates the sector could reach 10 percent, or 250,000 apartments, by 2050. Scaling BTR with Green Star could avoid around 150 million kilograms of carbon emissions each year – the equivalent of taking nearly 35,000 petrol-powered cars off the road annually.

Luke Mackintosh, partner at BDO and BTR valuation and transaction advisory specialist, notes, “Institutional owners demand Green Star because they know without it, they can’t sell it.” Green Star commitments increasingly influence transactions, Mackintosh adds. “We’ve seen investors pull out of deals after 12 months of negotiations because the Green Star features were removed to reduce construction costs.”

While the report is designed with investors in mind, it also highlights good news for renters. Among the evidence, tenants in Green Star–rated apartments save an average of around $870 a year on energy bills.

‘BTR will not solve Australia’s housing challenges on its own’

BTR will not solve Australia’s housing challenges on its own, Rooney adds, but the sector offers a rare opportunity to lift expectations for rental housing at scale.

“When buildings perform better, everyone wins. Residents enjoy more comfortable, cheaper-to-run homes. Investors see steadier returns and more valuable assets. Governments meet housing targets while building inclusive, climate resilient communities. The opportunity is real – and unlocking it starts with Green Star.”

Download the report here.

Lead image of Arklife’s Cordelia designed by Rothelowman. Photography by Peter Bennetts.