A new research highlights the investment potential of Birmingham’s Build to Rent (BTR) market.
Advisory service GAA says Birmingham has experienced significant population growth of 6.9% – equating to 72,000 new residents. A further influx of 46,408 people is projected by 2032, creating important implications for urban planning, housing demand, infrastructure development and public services in the city.
The new report also emphasises Birmingham’s growing wealth. The city has a projected compound annual growth rate (CAGR) of 18-23% over the next 10 years. A thriving economy and rising incomes combine with a youthful population (over 440,000 residents aged 25-44) to create an interesting landscape for the city’s property market.
Birmingham already has several clusters of successfully operational BTR homes, including in Digbeth and Southside, the city centre and the Broad Street area.
In total, 19 schemes from leading operators, including Touchstone, Moda Living, Savills, JLL, Urbanbubble, Grainger, Dandara Living and more, are open and operational in and around the city.
The Digbeth and Southside area leads Birmingham’s cultural and residential renaissance, with extensive urban revitalization and regeneration work transforming the cityscape and making this the natural home for many BTR schemes.
Landmark transformation projects in the city centre – notably Great Charles Street, The Octagon and the Smithfield regeneration – are also supporting a thriving BTR scene. Meanwhile, a wave of new high-rise developments in the Broad Street area is bringing modern rental living to the doorstep of the city’s nightlife, cultural attractions and business districts.
The age of Birmingham’s population, 66% of whom were under the age of 45 in 2024, along with average earnings of £35,100, aligns with core demand for BTR. The British Property Federation reports that 62% of BTR renters are aged 25-44. With an increasingly affluent young population, Birmingham is tipped to see substantial growth in demand for BTR homes over the coming years.
Birmingham faces a widening housing gap as household numbers are projected to grow by 11,589 between 2023 and 2028, requiring around 2,318 new homes each year simply to meet formation demand. Migration flows underscore the challenge: in 2023 alone, more than half of the city’s in-movers were aged 20–34, cementing young adults as the dominant driver of housing need.
Compounding the shortage is the city’s ageing housing stock and slow progress on energy-efficiency upgrades. Nearly 86% of homes were built before 2000, and Q1 2025 EPC data show only 6.4% of lodgements achieving a B rating, while 47.5% remain at a C and 39% at a D. This leaves substantial proportion of Birmingham’s housing ill-prepared for future regulatory requirements and tenant expectations.
The combination of rising demand, persistent delivery shortfalls and an outdated, inefficient stock presents both a critical challenge and a clear investment opportunity for developers, who can target new-build schemes (i.e BTR) and retrofits to close the supply gap and meet tightening energy standards.
Ronak Rawal, a senior director at GAA, comments: “A growing population and substantial income gains look set to make BTR options increasingly affordable in Birmingham over the next decade. The city holds enduring appeal to young professionals and this widening pool of mid-market tenants supports sustained BTR demand, signalling a notable opportunity for investors.”
Investors can download the report for free here:www.gaaliving.com.
