Residential Property Operators in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: September 2024
ANZSIC L6711Revenue
$69.5bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
8,316
Businesses
61,722
Wages
$XXX.Xm
Residential Property Operators in Australia industry analysis
The Residential Property Operators industry involves renting or leasing out residential property. The primary factor driving industry demand is the number of households that don't own residential property and need to rent from landlords. Australia's negative gearing tax system incentivises investors to buy residential properties, as they can use these to offset their tax obligations. That’s why many landlords ensure they run operations at a loss to reduce their tax payments. The industry's performance has been volatile over recent years, as shifting vacancy rates, eviction moratoriums during the pandemic and turbulent residential property yields have affected property operators. Overall, industry revenue has remained stable, with an annualised growth of 0.1% over the five years to 2024-25, to $69.5 billion. This trend includes a rise of 1.9% in the current year.
Trends and Insights
- Mortgages have become less affordable, meaning that more people are opting to rent a house rather than buy one. Investors’ existing assets have become more valuable as residential housing prices rise. Investors have been purchasing more properties, boosting enterprise numbers.
- Detached properties are attracting fewer renters, as lower property yields have forced lessors to raise rent prices. Since rental vacancies are falling and rent prices are spiking, groups of people are opting to share rental properties.
- Sydney and Melbourne have high demand for rental properties, since many people move to these cities for work and education. Sydney has the highest median house values in Australia, meaning that first-home buyers are being priced out of the market.
- The Residential Properaty Operators industry has many investors that purchase properties and rent them out. This factor limits how much larger property syndicates can expand.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.1 % over the past five years, to reach an estimated $69.5bn in 2024.
Trends and Insights
High interest rates and low vacancy rates boost demand for residential property rentals
- Residential property operators have faced volatile operating conditions over recent years driven by shifting economic circumstances.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A continuation of rental vacancies will keep revenue on the rise
- Persistent low birth rates will lead to increased migration and a hike in the number of foreign students. Most of these individuals will be unable to buy their own property, driving demand for rental properties and lowering vacancies.
Biggest companies in the Residential Property Operators in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Defence Housing Australia | 556.2 | |
Meriton | 276.7 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Leasing of detached houses, Leasing of semi-detached houses and other dwellings and Leasing of flats, units and apartments. Leasing of detached houses is the largest segment of the Residential Property Operators in Australia.
Trends and Insights
Lower residential property yields have reduced detached properties' revenue contribution
- Detached houses are freestanding in their own grounds and are separated from other dwellings by at least half a metre.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Serviced Apartments in Australia
Complementors
- House Construction in Australia
- Multi-Unit Apartment and Townhouse Construction in Australia
- Hotels and Resorts in Australia
- Motels in Australia
- Land Development and Subdivision in Australia
International industries
- Property Management in the US
- Property Management in Canada
- Estate Agents in the UK
- Letting & Operating of Real Estate in Germany
- Estate Agents in Ireland
Table of Contents
About this industry
Industry definition
Residential property 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).
What's included in this industry?
Apartment renting or leasingResidential caravan park operationFlat renting or leasingResidential house renting or leasingResidential property body corporate operationResidential property strata corporation operationCompanies
Defence Housing AustraliaMeritonPurchase this report to view all 2 major companies in this industry.
Related Terms
VACANCY RATESCAPITAL GAINSOWNER-OCCUPIERTENANTLANDLORDIndustry Code
ANZSIC 6711 - Residential Property Operators in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Mortgages have become less affordable, meaning that more people are opting to rent a house rather than buy one. Investors’ existing assets have become more valuable as reside...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Detached properties are attracting fewer renters, as lower property yields have forced lessors to raise rent prices. Since rental vacancies are falling and rent prices are sp...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Sydney and Melbourne have high demand for rental properties, since many people move to these cities for work and education. Sydney has the highest median house values in Aust...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The Residential Properaty Operators industry has many investors that purchase properties and rent them out. This factor limits how much larger property syndicates can expand.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Residential Property Operators industry is highly fragmented with no major companies. Most residential property operators are non-employing owner-operators, including sol...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Defence Housing Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Meriton's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Defence Housing Australia, and factors influencing its performance in the industry
- Description and key data for Meriton, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Government assistance schemes like the First Home Owner Grant help first-home buyers offset the costs of buying a home. Government schemes like this damage rental demand.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
A larger population and lower mortgage affordability have been limiting annual fluctuations in profitability. Residential property operators spend a lot of money on outsourci...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Residential Property Operators industry in Australia in 2024?
The market size of the Residential Property Operators industry in Australia is $69.5bn in 2024.
How many businesses are there in the Residential Property Operators in Australia industry in 2024?
There are 61,722 businesses in the Residential Property Operators industry in Australia, which has grown at a CAGR of 2.2 % between 2019 and 2024.
Has the Residential Property Operators industry in Australia grown or declined over the past 5 years?
The market size of the Residential Property Operators industry in Australia has been growing at a CAGR of 0.1 % between 2019 and 2024.
What is the forecast growth of the Residential Property Operators industry in Australia over the next 5 years?
Over the next five years, the Residential Property Operators industry in Australia is expected to grow.
What are the biggest companies in the Residential Property Operators market in Australia?
The biggest companies operating in the Residential Property Operators market in Australia are Defence Housing Australia and Meriton
What does the Residential Property Operators in Australia include?
Apartment renting or leasing and Residential caravan park operation are part of the Residential Property Operators industry.
Which companies have the highest market share in the Residential Property Operators in Australia?
The company holding the most market share in Australia is Defence Housing Australia.
How competitive is the Residential Property Operators industry in Australia?
The level of competition is high and steady in the Residential Property Operators industry in Australia.
