Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 30

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 30
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to, costs of construction materials, labor and services from third-party contractors and suppliers. Certain increases in the costs of
construction materials can often be managed in our development projects through either general budget contingencies built into our overall
construction costs estimates for each project or guaranteed maximum price construction contracts, which stipulate a maximum price for
certain construction costs and shift inflation risk to construction general contractors. However, no assurance can be given that our budget
contingencies would accurately account for potential construction cost increases given the current severity of inflation and variety of
contributing factors or that general contractors would be able to absorb such increases in costs and complete our construction projects
timely, within budget, or at all. Higher construction costs could adversely impact our investments in real estate assets and expected
yields on our development projects, which may make otherwise lucrative investment opportunities less profitable to us. As a result, our
business, financial condition, results of operations, cash flows, liquidity and ability to satisfy our debt service obligations and to
pay dividends and distributions to security holders could be adversely affected over time.

Our current portfolio primarily consists of interests in residential properties, located primarily in markets in the Sunbelt and Western United States. Any adverse developments in local economic conditions or the demand for residential properties in these markets may negatively impact our results of operations.

Our current portfolio of properties
consists primarily of residential properties geographically concentrated in the Sunbelt and Western United States, and our portfolio going
forward may consist primarily of the same. As such, we are currently susceptible to local economic conditions and the supply of and demand
for residential properties in these markets. If there is a downturn in the economy or an oversupply of or decrease in demand for residential
properties in these markets, our business could be materially adversely affected to a greater extent than if we owned a real estate portfolio
that was more diversified in terms of both geography and industry focus.

We are employing a business model with a limited track record, which may make our business difficult to evaluate.

Our business strategy involves
purchasing, renovating, maintaining, and managing a large number of residential properties, including single-family properties, and leasing
them to qualified residents. Until recently, the single-family rental business consisted primarily of private and individual investors
in local markets and was managed individually or by small, non-institutional owners and property managers. Entry into this market by large,
well-capitalized investors is a relatively recent trend, so few peer companies exist and none have yet established long