multi-storey apartment building with street number 350 and pedestrians and residents

Infrastructure

Integrating impact housing in Australian build-to-rent developments

Local, a Macquarie Asset Management portfolio company, is developing sustainable build-to-rent communities that integrate impact housing into every development

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SectorInfrastructure
Sub-sectorReal estate
LocationAustralia

Opportunity

Housing affordability pressures continue to intensify in Australia, with an estimated 1.26 million low-income households experiencing housing stress and spending more than 30 per cent of their disposable income on housing costs.1

Population growth of approximately 1.2 per cent per annum, combined with an over-65 population growing at twice that rate, is driving additional demand at a time when rising construction costs and planning constraints continue to constrain new housing supply.2

The shortage disproportionately affects vulnerable groups, including older women and Australians with disabilities, highlighting the need for more affordable and accessible housing options.

At the same time, housing preferences are shifting, driving increased demand for professionally managed rental housing that provides greater security, flexibility and service.

Approach

In 2021, a joint venture managed by Macquarie Asset Management (MAM) co-founded Local, a build-to-rent platform focused on increasing the supply of rental housing across Australia.

Alongside increasing housing supply, Local is committed to expanding access to housing for people who may face barriers in the private rental market. The platform committed $A82 million to impact housing in 2025 and allocates at least 10 per cent of every development to social and affordable housing outcomes.3

Sustainability is embedded throughout the platform. All developments target a minimum 5 Star Green Star and 7.5-star NatHERS rating, while new Local-operated buildings are committed to using 100 per cent GreenPower4 electricity through embedded energy networks, complemented by rooftop solar powering common areas.5

Since inception, Local has maintained net zero in business operations and retained its Climate Active Carbon Neutral certification.5

Outcome

Local has grown into one of Australia's largest build-to-rent operators, with more than 4,000 apartments under management across eight neighbourhoods. By 2030, its development pipeline is expected to deliver 491 impact housing apartments further expanding its social impact offering.6

Through partnerships with specialist housing providers including Women's Property Initiatives, Storey Residential and Enliven Housing, Local is helping expand access to housing for women over 55 at risk of homelessness, key workers on low-to-moderate incomes, and younger people requiring Specialist Disability Accommodation (SDA), who are at risk of entering aged care.

At Local's Kensington development in inner-city Melbourne, 42 impact housing apartments have been delivered, with all social and affordable dwellings fully leased and SDA apartments now leasing.6 Box Hill welcomed its first residents in January 2026, with all 41 social and affordable dwellings fully leased, and is progressing the lease-up of its nine SDA apartments. South Melbourne remains on track to open in mid-2026 with a further 39 affordable apartments.

10,000

apartments targeted across Australia by 2030

10%

of every development dedicated to impact housing

490+

impact housing apartments in planning or development

Energy, Green, Sustainable, Renewable energy, Sustainable energy, Clean energy, Eco-friendly energy, Alternative energy, Solar and wind energy, Plant on hand, Eco

Net zero

in business operations since inception in 2021

  1. Australian Institute of Health and Welfare (AIHW) report Australia's welfare 2025: in brief, 16 October 2025.
  2. Australian Government Treasury, Centre for Population, 2025 Population Statement, 9 January 2026.
  3. Local has committed to allocating at least 10 per cent of housing within each project to impact housing, defined as social housing, key worker affordable housing, specialist disability accommodation, or age-in-place dwellings.
  4. GreenPower is an Australian government-accredited program that certifies renewable electricity products. Purchasing GreenPower-accredited electricity guarantees that an equivalent amount of renewable energy has been added to the grid to match consumption.
  5. Local ESG Report 2025–2026, 12 June 2026.
  6. As at 30 June 2026, Local.

Macquarie Asset Management FY23 Sustainability Report

At Macquarie Asset Management, we view sustainability as part of our fiduciary duty to protect and grow our clients’ assets. This focus also helps us generate positive outcomes for our investee companies and the communities they serve. Our latest Sustainability Report outlines the progress we have made over the past financial year.

Read the Report

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