From the AHURI Inquiry: Inquiry into the future of the private rental sector

This research investigated the private rental sector (PRS) policy settings and institutions relevant to Australia in 10 countries in Australasia, Europe and North America, with a detailed review of the sectors in Germany, Ireland, the United Kingdom and United States.

The Australian PRS is growing, both in absolute terms and relative to the owner-occupied and social housing sectors, and changing in terms of the types of households, the types of dwellings and the ownership of those dwellings. 

By studying international experiences of PRS change, policymakers may gain alternative perspectives on Australia’s PRS institutions and insights into the opportunities and challenges that change presents.

The research investigated the international experience of PRS housing through: 

• housing and socio-economic system factors, such as housing form, housing markets, household form and economic performance 
• financial settings, such as housing credit, taxation and subsidies 
• landlords and managers, both individual persons and large corporations 
• regulation, with a focus on laws regarding security of tenure and rents.

In most countries, the PRS tends towards apartments, small households and lower incomes than for the general housing system. In this, Australia stands out for having a PRS that is closer to the wider Australian housing system in terms of building types, household form and household incomes.