Company: BHM
Filing Date: 2025-07-08
Form Type: DRS
Source: 0001104659-25-066400
Chunk: 160

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-07-08
Form: DRS
Chunk 160
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 Burns Real Estate Consulting, December 2024

77

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'>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.

<div align='center'>TTM Average National Existing Home Inventory (MM-Units)</div>

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

<div align='center'>78</div>

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
persistent renter demand will provide a goldilocks environment for residential rental landlord into the future.

<div align='center'>Source: Marcus & Millichap, 2025 Economic
and Commercial Real Estate Outlook</div>

Millennials Are Entering Peak Homeownership Consumption Years, Driving Demand

The millennial cohort is continuing
to enter the 35 and over age category, which is traditionally the peak age group for homeownership demand. Instead of purchasing homes
like their predecessor cohorts, and driven by factors including the increasing unaffordability of homeownership, the presence of a sizable
student loan debt burden, a notable increase in credit card debt and an attraction to the financial and lifestyle flexibility that defines
the rental market, millennials are increasingly choosing to continue to rent instead