Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 168

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 168
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 strong backdrop for the entire rental sector. Low vacancy rates and strong long term historical       
 rent increases signal a long-term healthy sector with significant opportunity.                                                              |

Homeownership Unaffordability Driving Residential Rental Demand

Apartment and single-family
rental tenants will be forced to rent longer due to the affordability constraints associated with home ownership. As the chart below
illustrates, for most of the past 20 years, with the limited exception of the years immediately following the Great Recession, renting
was significantly more cost-effective than owning. According to John Burns Real Estate Consulting, it is 44% more expensive to own a
home than rent, as of October 2024. This trend has been persistent, with homeownership 45% more expensive on average since 2022.

<div align='center'>101

National Cost of Purchasing vs. Renting Single-Family Starter Home %

Monthly mortgage payment + maintenance for single-family
starter home vs. monthly rent

Source: John Burns Real Estate Consulting, December 2024

TTM Average National Existing Home Inventory (MM-Units)</div>

Source: National Association of Realtors. TTM = Trailing 12 Months

The housing supply shortage
is projected to continue into 2035, with the shortage peaking at approximately four million in 2029. This is expected to drive tailwinds
for residential rental property occupancy and rental rate growth.

<div align='center'>102

U.S. Housing Surplus/Shortage</div>

Homeownership is expected
to stay out of reach for many, with insufficient supply coming to market. As shown below, home inventory is approximately 50% below long-term
averages.

Source: U.S. Census Bureau; Moody’s Analytics; Clarion Partners
Investment Research, as of April 2024.

Note: Historical housing shortfall/surplus calculates
the difference between the current number of vacant units and the total number of vacant units that would exist under “normal”
market conditions, which is based on the long-term housing vacancy rate. The forecast builds on the existing housing shortfall/surplus,
comparing forecasted annual household formations to housing unit completions.

This lack of supply applies
to all sectors in residential housing. The apartment market is also expected to see a sharp decline in supply. As shown below, new multifamily
starts have decreased 76% and apartments under construction have decreased 39% from 2022 to 2024. The lack of new supply, coupled with