Systematic Literature Review to Identify the Critical Success Factors of the Build-to-Rent Housing Model

Rotimi Abidoye,Fahim Ullah,Bilal Ayub

doi:10.3390/buildings12020171

Rotimi Abidoye, Fahim Ullah + Show 1 more

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https://doi.org/10.3390/buildings12020171

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Abstract

The current young generation in Australia is increasingly facing issues around housing, and the demand for affordable and personalised housing alternatives to suit the needs of the younger population has given rise to a variety of housing options. The Build-to-Rent (BTR) housing supply model is one such option that was recently introduced with the aim to provide diversity and choice within the private rental sector (PRS). Although the idea of building housing infrastructure to rent is not new, the formalisation of the BTR concept is currently underway and requires a comprehensive understanding of the various factors influencing its successful adoption. With the introduction of big market players such as institutional investors, understanding the critical success factors (CSFs) for producing successful BTR projects is crucial for its adoption as a feasible option for housing provision, especially for the younger population. Through a systematic literature review approach using the Web of Science and Scopus databases, recent literature from 2011 to 2021 were reviewed to identify CSFs related to the BTR housing model. These CSFs help distinguish the BTR paradigm within the general housing market system. A total of 32 CSFs were identified through the review process. Major factors relate to investors’ interest and willingness, affordability, and housing reforms and awareness. These CSFs identify the key areas of interest within the BTR research which can help create a comprehensive understanding of the current BTR scheme, along with providing a baseline for future research.

Highlights

With the increase in the global population, associated needs such as housing requirements are on the rise
critical success factors (CSFs) to understand the prospects of the BTR scheme for young Australians are diverse yet intertwined with each other, such that each of the factors becomes essential for the collective success of BTR schemes
Opportunities are to be provided to investors, especially institutional investors, to develop housing infrastructure; on the other hand, it is important to focus on the needs of the targeted community so that these projects can be a success story from both investment and social perspectives

Summary

Introduction

With the increase in the global population, associated needs such as housing requirements are on the rise. There has been an increase in housing demand, with approximately 90% of 200 cities worldwide deemed unaffordable [1]. In the last half of 2020 and the first half of 2021, house prices in the US alone rose by 11%. New Zealand saw an increase of 22% during the same period. The COVID-19 pandemic has further fuelled an increase in house prices. Housing prices have escalated by approximately 7% in the eight major cities of Australia [2]

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