Evaluating returns in the residential rental sector

This study seeks to determine an appropriate form of yield analysis as a means of improving the supply of low cost rental housing within Australia.

Rental returns are quantified on a disaggregated basis based on the amalgamation of three major government property databases.

Much of the information on returns in low cost rental housing is based on erroneous assumptions. More accurate reporting of returns would put in place the appropriate risk premium for investment in low cost rental housing.

The study adds value by allowing policy makers to better understand the nature of returns required to increase the level of investment in the low cost end of the private rental market.