Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 32

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 32
---
 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.

<div align='center'>17</div>

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 inflation.

Inflation in the United
States remained elevated throughout 2023 and 2024 and may continue to remain high in the future. While inflation has shown signs of moderating,
it remains uncertain whether substantial inflation in the United States will be sustained over an extended period of time or have a significant
effect on the United States or other economies. Rising inflation could have an adverse impact on our operating expenses as well as our
general and administrative expenses. For example, it is possible that the impact of the rate of inflation may not be adequately offset
by annual rent escalations or the resetting of rents from our renewal and re-leasing activities, which may adversely affect our business,
financial condition, results of operations, and cash flows. Compensation costs and professional service fees are also subject to the
impact of inflation and are expected to increase proportionately with increasing market prices for such services. Consequently, inflation
may increase our general and administrative expenses over time and may adversely impact our results of operations and cash flows.

While the Federal Reserve
held rates steady between July 2023 and September 2024, then reduced interest rates by 50-basis points in September 2024,
with another 25-basis point reduction in each of November 2024 and December 2024, and has held rates steady during the first
half of 2025, there can be no assurances that interest rates will not rise again. Our exposure to increases in interest rates in the
short term is limited