9 March 2026
Over the weekend I spent some time reading Macquarie Group‘s latest strata industry benchmarking report.
As always, it’s a useful document. The study draws on responses from more than 200 strata businesses managing around 1.4 million lots across Australia, which provides a fairly broad view of how the industry is performing.
At a headline level the sector still looks healthy. Demand for strata management continues to grow as more Australians live in strata communities, and many businesses are reporting increased revenues.
But when you look deeper into the data, a more complicated picture emerges.
According to the report, 77% of strata businesses grew revenue last year, yet only 59% increased profits. At the same time, margins have continued their long-term decline, with median EBITDA falling to around 19%.
That gap between revenue growth and profitability is something many operators in the industry will recognise.
The job itself has changed significantly over the past decade.
Regulation has expanded. Governance expectations have increased. Buildings are larger and more complex. Committees are more engaged and communication expectations are far higher than they once were.
All of those pressures ultimately land in the same place: the people doing the work.
The report reinforces something that most leaders in this industry already understand. Strata is fundamentally a relationship business. Staff capability, retention and culture are not side issues, they sit right at the centre of whether a business performs well or struggles.
Interestingly, the higher-performing businesses in the study are not necessarily the largest. What distinguishes them is stability in their teams, strong retention of experienced strata managers, and disciplined operations that allow people to focus on clients rather than administrative load.
Which raises an important leadership question.
If the job of strata management is becoming more complex every year, operationally, legally and culturally, then the way we run our businesses needs to evolve with it.
Processes matter more. Technology matters more. And the way leaders structure teams and support their managers matters more than ever.
The industry will continue to grow.
But building a sustainable strata business in the current environment is clearly becoming more challenging.
For those of us leading businesses in the sector, the question is probably this:
Are we adapting our operating models to match today’s industry, or are we still trying to run yesterday’s playbook?
JM
Founder + Managing Director
Bettr Strata