Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 163

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 163
---
 50% below long-term averages.

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'>77

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.

<div align='center'>35–44-Year-Old YoY Population Growth (000's)

Source: Green Street 2025 U.S. Single-Family Rental
Outlook</div>

Demand for Rental Housing has Remained Resilient

Despite a record amount of
supply coming online in 2024, demand has remained resilient. Vacancy rates for apartments held steady at 5.1%, after nearly 600,000 units
were delivered. This robust demand, coupled with a sharp decline in new construction coming online should create a goldilocks environment
for the residential rental sector.

<div align='center'>78

National Apartment Vacancy Rate Trending Lower in 2025 as Completions Fall

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

Significant Near Obsolescence in Existing Residential Rental