Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 36

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 36
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, either through borrowings on floating-rate lines of credit or refinancing of our existing borrowings that may incur higher interest
expenses related to the issuance of new debt.

Additionally, inflationary
pricing may have a negative effect on the construction costs necessary to complete our development projects, including, but not limited
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.

Development, redevelopment, and construction risks could affect our profitability.

Development
and redevelopment are subject to numerous risks, including the following:

| · | we may be                                                                                                                               
 unable to obtain, or experience delays in obtaining, necessary zoning, occupancy, or other required governmental or third-party permits 
 and authorizations, which could result in increased costs or the delay or abandonment of opportunities;                                 |

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| · | we may incur                                                                                                                                
 costs that exceed our original estimates due to increased material, labor, or other factors and costs, such as those resulting from         
 litigation, program changes, inflation, interest rate increases, the implementation of tariffs, or supply chain disruptions;                |
| · | we may be unable to                                                                                                                         
 complete construction and lease-up of a residential community on schedule, including as a result of global supply chain disruptions,        
 resulting in increased construction and financing costs and a decrease in expected rental revenues;                                         |
| · | occupancy rates and                                                                                                                         
 rents at a residential community may fail to meet our expectations for a number of reasons, including changes in market and economic        
 conditions