Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 169

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 169
---
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

103</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'>National Apartment Vacancy Rate Trending Lower in 2025 as Completions Fall

Source: Marcus & Millichap, 2025 Economic
and Commercial Real Estate Outlook

104</div>

Significant Near Obsolescence in Existing Residential Rental Properties

As of 2022, only 15% of existing
single-family housing product and 17% of existing apartment product was newer than 20 years old, despite demand for modern amenities,
flexible floor plans, and updated kitchens/bathrooms. We believe that the relatively mature age of existing residential rental stock
presents a significant market opportunity to generate attractive risk-adjusted returns by providing desirable residential properties
with upgraded amenities through upgrades of existing homes, as well as developing new build-to-rent communities.

<div align='center'>Source: National Multi-Housing Council, U.S. Apartment
Demand through 2035

105</div>

Forecasts Signal Healthy Rent Growth for Residential Rental Properties

We expect healthy effective
rent growth for new residential rental leases across our target markets and portfolio. John Burns Real Estate Consulting data show a
cumulative