And we are seeing that play out significantly today. And the benefit of that is really realized today. So we have the ability to grow. We’re going to deliver 2,200, 2,300 homes this year, very well-located homes very attractive yields when you match it to cost of capital we’re using to fund them. So we have the ability to grow in all economic cycles. And we have the ability to be disciplined and discerning and buying additional homes. It doesn’t mean we won’t. We just have the ability to wait until the time is right. As I indicated on land, we’re seeing that land is getting closer to our buy box. On the acquisition side, overall, probably not. We’re still at the — in the low 5s at best, some market, maybe even the 4s. But there are opportunities once in a while, and we’re seeing a little bit more of them get very close to the buy box on a sharp shooting opportunity based.
We continue to write thousands of homes every month. So, we may buy one or two here and that volume may pick up. It is very, very hard to say between now and the end of the year. But if it does, we are there and we are prepared to applier homes if they are the right homes, the right locations. With respect to shadow inventory and how it impacts rental demand, Bryan, do you want to take that?
Bryan Smith: Sure. Brad, I’m going to start with — I think your question included that whether we’re seeing a lot of extra supply from build to rent. Build-to-rent inventory is actually down in most of the markets. We track that very closely. We are seeing supply pressures in a couple of our smaller markets. It’s part of the reason why the San Antonio occupancy tends to lag the rest of the portfolio. Keep in mind, it’s still strong in the 96% area. But the reason for that change year-over-year is that we have seen an increase in supply in San Antonio and Las Vegas, to name a couple.
David Singelyn: Let me add back on the build to rent. I was a miss. I forgot that piece of the question. Build-to-rent, definitely, we’re seeing less come to the finish line. We’re actually seeing opportunities to take some developed land that is in process that they haven’t started vertical to acquire. We, again, will be discerning as to the location of these and whether they are a good fit for the portfolio. But we have an opportunity to look at a few of those today.
Operator: Our next question comes from Daniel Tricarico with Scotiabank. Please proceed with your question.
Daniel Tricarico: Thank you. First question on occupancy. Curious if you thought about where occupancy would be of relative affordability, the picture there wasn’t as strong as it is today. Just thinking about the longer term run rate healthy occupancies for the business. And also the 96%, the high 96% range now in the full year guidance, which would be about, I don’t know, 25 to 50 basis points drop in average for the rest of the year. wonder if you could like quantify or put a range around the impact on occupancy from replacing those non-paying tenants.
Bryan Smith: Yes. Thank you, Daniel. I’m going to start with talking about the relative strength of occupancy in relationship to the — being less expensive to rent than it is to own. If you look historically in our business, we’ve performed very well when that dynamic was slipped and it was actually more expensive to rent than to own, not to say that we’re not capitalizing on the economics today, but our business holds up very well in both environments. I think it really would affect probably rate growth more so than occupancy. We’re very pleased with the gains that we’ve made in occupancy over the past few years, seeing a peak during COVID, maybe a little bit of an artificial peak in the 97, but we’re settling into the 96s and we expect the back half of this year to be around 96, which we think is very helpful healthy going forward.
