David Singelyn: Yes, Jamie, it’s Dave. When we talk about single family fundamentals, first, they are different than multifamily. The customer is going to be slightly different. The resident profile will be slightly different. And your statements are correct, but I also would add a few other statements. And that is, this country has a huge housing shortage. A million plus households don’t have quality housing. And the one thing that is coming to, more into light is the affordability question. And today it’s a 28% more affordable in our market to rent than it is to buy a home today. And so residents are staying longer, that is true, but the demand remains very, very strong. And with respect to tenant health, we’ve been through this.
We went through COVID where tenant health was of concern and our systems are set to monitor that and to communicate with residents as they have concerns. And we’ll work out acceptable and mutually beneficial solutions. And there is significant demand behind them. So today, I see the market being where it was in prior quarters. It’s still very strong, very solid demand out there.
James Feldman: Okay. Thank you for that. And then, our team has been thinking a lot about, the different performance among your development assets versus your acquisition or legacy assets. Are you able to give some color around, the different either CapEx profile, operating expense profile, even blended rent growth profile of your development assets versus the non-development assets in the portfolio?
Bryan Smith: Yes, Jamie, this is Bryan. That’s a very good question. We’re obviously tracking that as well. The AMH development homes are starting to come into the same home portfolio. And what we’ve noticed is it’s really playing out as we expected. These homes are quicker to turn, lower cash to cash, quicker to get back up and release. So that part’s playing out as expected. On the CapEx side, the expectations are that CapEx would be really low on these new houses. They’re built to be durable and they’re new. And that’s playing true almost across the board. So from a CapEx and expense profile perspective, it’s playing out as we expected. And then on the turn, speed and occupancy side, we’re seeing nice benefits there as well.
Operator: Our next question is from Michael Goldsmith with UBS. Please proceed.
Michael Goldsmith: Good afternoon. Thanks a lot for taking my question. The last three years have been anything but normal. But from here, do you see 2019 as a good benchmark for what normal looks like? Or have we seen changes in macro and demand factors that change the profile? And how does that impact how we should think about rent spreads as we move into the end of the year? Thanks.
Bryan Smith: Yes, Michael, this is Bryan. That’s a great question. The last three years have been a little different, I would say. When we’re talking about comparing how we’ve formed in 2023 to historical averages, we’re looking at the 17, 18, 19 period. And the most interesting thing is that with return to seasonality that we’re seeing now, the seasonal curve looks very similar to what it looked like before, except the bar has been raised. And the bar has been raised both from an occupancy perspective and from a rate growth perspective. I talked about those in my opening remarks. And I think that’s a result of a number of different things. First, I believe that the single family rental value proposition is finally being appreciated.
There was an acceleration of that during the COVID period. And I think that’s here to stay. The experience is very different than what you could find in that industry prior to the institutions coming in and providing real focus on the resident experience. So there’s been a fundamental change there. Migration patterns have played very nicely into better performance in our portfolio. So there are a number of macro things that are helping us change the way we expect to perform relative to pre-pandemic.
Michael Goldsmith: I don’t want to put words in your mouth, but it sounds like you believe that that is structural and not temporary, correct?
