A new privately funded build-to-rent project in Melbourne's eastern suburbs, developed by Local, has introduced 33 affordable rental units at below-market rates without relying on public subsidies.

The Box Hill development, featuring 425 units in total, achieves this through partnerships with community housing provider Storey Residential and cost-saving measures such as reduced taxes and lower bank interest rates.Developer Dan McLennan highlighted that these strategies enabled the project to offer apartments at a 25.1 per cent discount to market rates.

This initiative represents a significant shift in affordable housing models, demonstrating how private sector innovation can address rental affordability challenges without government financial support.

The development's success could inspire similar projects across Australia, offering a scalable solution for cities grappling with rising property prices and housing shortages.

By prioritizing long-term sustainability over immediate profit margins, the project underscores the potential of market-driven approaches to create accessible living options for diverse income groups.