Affordability prevails: High housing prices have prompted strong demand for rental property

Residential property operators are companies or individuals that draw income from renting out residential property. Industry demand is mainly driven by the number of households that do not own residential property, as these households have to rent residential property from industry operators. Although home ownership has traditionally been a priority for many Australians, strong housing price growth over the past five years has made it harder for consumers to save for a deposit and service increasingly costly mortgages. This trend has decreased the overall proportion of the population that owns the home they live in, increasing industry more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • High housing prices have boosted the number of renters, supporting industry revenue growth
  • Both federal and state governments have introduced policies to incentivise first-home buyers
  • Rising disposable incomes are anticipated to allow more Australians to buy rather than rent property
  • Industry Report - Industry Investment Chapter

    The Residential Property Operators industry is highly capital-intensive. For every dollar spent on capital in 2018-19, the average industry operator is expected to spend $0.06 on labour. This high capital intensity is due to the typical house being a significant initial financial investment that requires relatively little ongoing management and maintenance in terms of proportionate cost. In addition, investors often seek to maximise depreciation to use as an income deduction, thereby minimising taxable income. The industry does not directly employ many staff, as operators outsource much of the maintenance to real estate agencies or contractors...purchase to read more.

    Additional Insights for the Residential Property Operators Industry

    IBISWorld has determined the most important Key Success Factors for the Residential Property Operators are:

  • Understanding government policies and their implications
  • Good project management skills
  • Carrying out all necessary maintenance to keep facilities in good condition
  • IBISWorld analysts also discuss how external factors such as Residential housing loan rates and Mortgage affordability in the Residential Property Operators industry impact industry performance..

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    What's in this report

    What is the Residential Property Operators Industry?

    Industry operators rent or lease out residential properties. The industry includes owner-lessors and those that sublease. The industry excludes owner-occupiers that rent or lease their own dwellings to themselves (imputed rent).

    Industry Products
  • Leasing of detached houses
  • Leasing of semi-detached houses
  • Leasing of flats, units and apartments
  • Leasing of other dwellings
  • Strata management services
  • Industry Activities
  • Apartment renting or leasing
  • Residential caravan park operation
  • Flat renting or leasing
  • Residential house renting or leasing
  • Residential property body corporate operation
  • Residential property strata corporation operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Residential housing loan rates
  • Mortgage affordability
  • Real household disposable income
  • Residential property yields
  • Number of households

  • Current Performance
  • Housing affordability and government intervention
  • The rental market
  • Chart: Revenue Growth

  • Industry Outlook
  • Housing demand
  • Supply factors
  • Table: Residential Property Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Residential Property Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • State Government Administration
  • Consumers

  • Key Selling Industries
  • Electrical Services
  • Gardening Services
  • House Construction
  • Land Development and Subdivision
  • Mortgages
  • Multi-Unit Apartment and Townhouse Construction
  • Plumbing Services
  • Real Estate Services

  • Products & Services
  • Leasing of detached houses
  • Leasing of flats, units and apartments
  • Leasing of semi-detached houses
  • Strata management services
  • Leasing of other dwellings
  • Chart: Residential Property Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Singles
  • Couples with dependants
  • Couples
  • Singles with dependants
  • Other
  • Group households
  • Chart: Major Market Segmentation for the Residential Property Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Residential Property Operators

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Residential Property Operators Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Residential Property Operators Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Residential Property Operators Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Capital Gain
  • A profit from a sale of real estate, which exceeds its purchase price. It is the difference between a higher selling price and a lower purchase price.
  • Landlord
  • Another term for an industry operator. This can be anyone from an individual to a large trust that owns property and rents it out for tenants to live in.
  • Owner-Occupier
  • A household owner who lives in the property that they own, in contrast to an investor, who typically rents out the property to a tenant.
  • Tenant
  • A tenant is an individual, household or group that leases property owned by an industry operator to live in.
  • Vacancy Rate
  • Measures the number of unoccupied properties as a percentage of total available properties. Conversely, occupancy rate is the equivalent for the percentage of occupied properties.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Residential Property Operators market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Residential Property Operators:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Residential Property Operators market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Residential Property Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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