A Timely Boost for WA’s Tight Rental Market
Western Australia has taken a decisive step to tackle its rental shortage with the launch of the $75 million Build-to-Rent (BTR) Kickstart Fund, now open for expressions of interest.
Administered by Keystart, the initiative is part of the Cook Government’s commitment to boost affordable housing and attract greater private sector investment in long-term rental developments.
With Perth’s vacancy rate still hovering near record lows and demand outstripping supply across regional areas, the fund represents a strong signal that WA intends to scale up housing delivery, not just through traditional home ownership schemes, but through diversified pathways that improve access and affordability.
How the Fund Works
The Build-to-Rent Kickstart Fund provides no-interest and low-interest loans to developers of new BTR projects, making it easier for them to get projects off the ground in a climate of high construction costs and finance constraints.
Here’s how the model breaks down:
- No-interest loans: Covering up to 30% of construction costs, capped at $250,000 per dwelling, for up to three years during construction.
- Low-interest loans: Once complete, projects can access concessional loans for up to 30% of the asset’s value for a further seven years.
- Eligibility: Projects must deliver a minimum of 40 new dwellings, all offered as rentals for at least 10 years.
- Affordability requirement: 30% of all dwellings must be offered as affordable rentals, with rent capped at 25% of household income up to Keystart income thresholds.
The aim is simple: make the numbers stack up for developers so projects can proceed faster, easing pressure on the rental market and creating a more stable housing pipeline.
Addressing the Market Gap
While Build-to-Rent has been gaining traction in the eastern states, particularly in Sydney, Brisbane, and Melbourne, WA has lagged behind, with only a handful of active projects.
Treasurer Rita Saffioti said the Kickstart Fund was designed to change that.
“Build to Rent is a major opportunity to bring more rental stock onto the market in WA and help more Western Australians into an affordable home,” Saffioti said.
“Our Build to Rent Kickstart Fund will attract private sector investment into building more long-term rentals, boosting housing supply through low-cost finance.”
By easing the up-front capital burden and offering long-term stability, the fund seeks to make WA’s BTR sector more competitive and appealing to institutional investors.
What This Means for Builders and Developers
For the building industry, the fund opens a new pipeline of potential projects at a time when many developers are struggling to make housing feasibly priced.
Access to no-interest and low-interest loans can significantly improve project viability particularly for mid-sized developers who have the capability to deliver multi-residential projects but are constrained by funding hurdles.
For builders, this could translate to more tender opportunities and a steadier flow of work as the state pushes to increase housing supply.
The requirement that 30% of dwellings remain affordable for at least a decade also gives the industry confidence that these aren’t short-term fixes, but long-term community investments.
Building on a Broader Housing Strategy
The BTR Kickstart Fund complements a suite of other initiatives under the Cook Government’s housing strategy, including:
- $210 million Urban Connect Shared Equity scheme to support apartment and townhouse purchases
- New modular home loans to fast-track supply in regional WA
- Graduate and Apprentice Loan scheme, launching later this year to strengthen the construction workforce
- A 75% land tax exemption for Build-to-Rent projects to encourage private sector participation
Together, these programs reflect a coordinated push to address both supply and affordability, tackling financial, planning, and skills barriers simultaneously.
Minister John Carey: “We Need Private Investment On Board”
Housing and Works Minister John Carey reinforced that government alone can’t solve the housing crisis.
“The Build-to-Rent Kickstart Fund builds on our strong commitment to working with industry to deliver more supply to the housing and rental markets,” Carey said.
“We’re already backing Build-to-Rent with major government-led developments at Pier Street and the former Stirling Towers site. This fund is about spurring on private sector investment to accelerate the supply of rentals.”
Carey’s comments highlight a growing trend across Australia: public-private collaboration as a lever to meet ambitious housing targets. By improving project economics through concessional finance and tax relief, governments can help unlock large-scale developments that traditional financing might otherwise stall.
Industry Opportunity: A Long-Term Shift in Housing Delivery
For builders, architects, and developers, the BTR model represents a paradigm shift in how homes are financed, built, and managed.
Instead of selling units off-the-plan, developers retain ownership and lease them over time, often partnering with institutional investors or super funds. This creates recurring revenue streams and incentivises higher-quality construction, longer building lifespans, and better tenant experience.
With the Kickstart Fund’s backing, WA builders could find themselves part of a growing national movement that’s reshaping the rental landscape, one focused on security, sustainability, and scale.
Expressions of Interest Now Open
Expressions of interest for the Build-to-Rent Kickstart Fund close 5pm Monday, 8 December 2025, with details available through Keystart’s website at
keystart.com.au/about-us/industry/build-to-rent.
Given the level of demand in WA’s rental market, competition for funding is expected to be strong. Builders, developers, and investors considering submissions are encouraged to act quickly and align projects with the fund’s eligibility and affordability criteria.
The Good Builder’s Take
For an industry still navigating high costs, tight margins, and shifting regulations, initiatives like this offer a tangible opportunity to drive growth and impact where it’s needed most.
Build-to-Rent is a practical step forward, one that rewards collaboration between government and private enterprise, and ensures that more Western Australians have access to secure, long-term rental housing.
It’s also a reminder that the future of housing won’t be defined by ownership alone, but by how we design, finance, and deliver homes that meet the needs of modern Australia.
0 Comments