Company: BHM
Filing Date: 2025-03-20
Form Type: 10-K
Source: 0001410578-25-000400
Chunk: 12

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-03-20
Form: 10-K
Item: Item 1A
Chunk 12
---
Item 1A.    Risk Factors

Risks Related to Our Business, Properties and Industry

We face numerous risks associated with the real estate industry that could adversely affect our results of operations through decreased revenues or increased costs.

As a real estate company, we are subject to various changes in real estate conditions, and any negative trends in such real estate conditions may adversely affect our results of operations through decreased revenues or increased costs. These conditions include:

●changes in national, regional and local economic conditions, which may be negatively impacted by concerns about inflation, deflation, government deficits, high unemployment rates, decreased consumer confidence and liquidity concerns, particularly in markets in which we have a high concentration of properties;

●fluctuations and relative increases in interest rates, which could adversely affect our ability to obtain financing on favorable terms or at all;

●the inability of tenants to pay rent;

●the existence and quality of the competition, such as the attractiveness of our properties as compared to our competitors’ properties based on considerations such as convenience of location, rental rates and safety record;

●increased operating costs, including increased real property taxes, HOA fees, maintenance, insurance and utilities costs;

●weather conditions that may increase or decrease energy costs and other weather-related expenses;

●oversupply of residential housing or a reduction in demand for real estate in the markets in which our properties are located;

●costs and time period required to convert acquisitions to rental properties;

●a favorable interest rate environment that may result in a significant number of potential residents of our properties deciding to purchase homes instead of renting;

●rules, regulations and/or policy initiatives by government and private actors, including HOAs, to discourage or deter the purchase of residential properties by entities owned or controlled by institutional investors;

●construction of new supply;

●changes in, or increased costs of compliance with, laws and/or governmental regulations, including those governing usage, zoning, the environment and taxes; and

●rent control or stabilization laws, or other laws regulating rental housing, which could prevent us from raising rents to offset increases in operating costs.

Moreover, other factors may adversely affect our results of operations, including potential liability under environmental and other laws and other unforeseen events, many of which are discussed elsewhere in the following risk factors. Any or all of these factors could materially adversely affect our results of operations through decreased revenues or increased costs.

Many of our costs, such as operating expenses and general and administrative expenses, interest expense and real estate acquisition and construction costs, could be adversely impacted by periods of heightened