The rental market is growing more quickly than any other segment of the Australian property market, according to a new report from the Australian Housing and Urban Research Institute.

The report, titled 'Private rental in transition: institutional change, technology and innovation in Australia' reveals that the private rental sector increased by 38 per cent in the 10 years between 2006 and 2016, more than double the growth rate of overall households.

Housing tenure change, Australian households, 2011-16 and 2006-16

Source: AHURI.

In 2016, 2.1 million households were in the private rental sector, or 26 per cent of all households.

More Australians than ever before are landlords

The report examines the ways the rental property has changed.

Lending to buy rental properties has increased. Over the ten years from 2006 to 2016, lending for investment properties at times grew more quickly than lending for owner occupier homes.

In 2013-14, 1.135 million Australian households were landlords, with 72 per cent owning only one investment property.

Growth of the rental sector is impacting the real estate industry

Growth of the rental sector is having a significant impact on the real estate industry, according to the report, as larger rent rolls generate more income and stable revenue streams for real estate agents and property managers.

The share of rental properties under management by real estate agents increased from 68 per cent in 2006 to 75 per cent in 2016, with Sydney (81 per cent) and Melbourne (79 per cent) having the largest shares.

In 2014, property management account for 44 per cent of real estate industry revenue, up from 23 per cent in 1993.

Growth of the rental housing market in Australia has created new organisations, technologies and practices, according to the report.

There are more intermediary organisations, offering services for financing, provision, access and property management.

New rental models are emerging, such as build-to-rent

Developers are entering the rental market with new development models, such as student housing and the build-to-rent model.

New technology is also playing an extensive role in the Australian rental property market, including online property sites, sharing portals, and property management software.

The report says that with the changes in the rental property market, "there are clear signs need to reconnect regulation with policy goals".

Click here to download the AHURI report 'Private rental in transition: institutional change, technology and innovation in Australia'.

Read more about the rental property market in Australia:

ATO employs new tools to scrutinise rental property market

Rental trends in NSW

Sydney vacancy rates treading water