Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 167

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 167
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 of the criteria regarding intent or requirement to
sell is met. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses.

<div align='center'>100

OUR INDUSTRY AND MARKET OPPORTUNITY</div>

Market and Investment Opportunity

The residential rental industry
has historically been more resilient to economic downturns than other commercial real estate sectors and is currently benefiting from
significant industry tailwinds that began during the COVID-19 pandemic. Rental market fundamentals are strong and demographic trends
support further strengthening, particularly from rental-biased and debt-burdened millennials now reaching peak household-formation and
homeownership age. We believe that a continued upswing in the propensity to rent, coupled with the limited and depleting supply for the
middle-income range, signals significant opportunity. Specifically:

| · | Renting currently represents                                                                                                                
 a significant cost saving to homeownership, and the recent increases in both housing prices and mortgage rates have exacerbated the         
 difference. The median cost to rent versus owning a home is near the widest gap on record, reaching approximately $1,300 per                
 month, with only 27% of United States households able to qualify for a standard Freddie Mac loan on a median priced home. (Source:          
 Marcus & Millichap, 2025 Multifamily Investment Outlook.)                                                                                   |
| · | Favorable demographic                                                                                                                       
 trends should drive demand for residential rental product. The aging of the millennial cohort into their prime household formation          
 years and desire for more space combined with the financial constraints of this cohort should spur demand for moderately priced residential 
 rental product.                                                                                                                             |
| · | Low housing supply has                                                                                                                      
 contributed to extraordinary housing price increases. Low supply, coupled with pandemic growth, triggered record high year-over-year        
 home price increases.                                                                                                                       |
| · | Robust rental market                                                                                                                        
 fundamentals provide an exceptionally 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.                                                              |
| · | Residential rental production                                                                                                               
 has been below trend for many years, creating both low rental vacancy rates and older dated product for much of the nation’s                
 housing stock. According to Marcus & Millichap, this trend is expected to continue with multifamily construction expected                   
 to decrease 30% in 2025 compared to 2022 construction starts.                                                                               |
| · | Robust rental market                                                                                                                        
 fundamentals provide an exceptionally