David Singelyn: Keegan, it’s Dave. Let me just add a couple of maybe more macro thoughts of the marketplace. Today, nothing has changed from prior periods in that there are still many, many households that are looking for high-quality housing in this country remains under supply. With that said, a couple of things have changed. One is that the homebuilders, the velocity and pace at which they were building new homes has slowed. And so, the ability to meet that demand has waned a little bit as well. The second is the affordability of a brand new house, the mortgage, the other ancillary costs that go with homeownership versus the affordability of a rental, while they were pretty much an equilibrium for a significant period of time.
Today, if you look at some data out there, primarily the John Burns data that we’ve looked at, you’ll see that it’s significantly more affordable today to rent. So, it’s greater than 20% more affordable, which is a very, very significant change from where we were. All of that is putting significant — keep significant demand for rental product in the marketplace. Now, keep in mind, we’re also in volatile and uncertain times and a little bit of pricing pressures on households, but the demand is there. And so, it’s just incumbent upon us to capture that demand.
Keegan Carl: Then shifting gears here. I know I feel like we discussed on every call, but it seems like there’s just more and more chatter on regulation in the SFR space, most recently in North Carolina. Just kind of curious how are you guys thinking about not just the broader regulatory environment, maybe even on a state-by-state basis, how that impacts your decisions?
David Singelyn: Yes. Well, Kean, I think you’re probably right that there is a little bit more at least awareness of the political side. And I would say, North Carolina is one of the states, but there — it’s not the only state. We see it in Georgia. We see it in California. We see it in the state of Washington. We’ve been very proactive on the government fair side. We started a year and half years — about a year and half ago, a government affairs department. We have government affairs people on our staff. We invest time at the executive level talking to government officials at the federal, state, and local levels. And when you look at a lot of the rhetoric that has come out through government officials or even in newspapers, you will see that we may be listed in the article as another player in the single-family rental industry, but there’s not much that has been targeted at us directly.
And that is really having those good relationships out there. And so, we will continue to pursue and have those discussions each and every year. Part of Resident 360, will address some of that as well, not the primary focus, but maybe a secondary ancillary benefit of that program. So yes, there is at least the rhetoric. At the federal level, that is the most visible, it’s more theater than it is at the local levels where it’s more action. So, yes, we have a ground game as well as we’re very focused at the federal level as well.
Operator: Our next question is from Alan Peterson with Green Street. Please proceed with your question.
Alan Peterson: Hi everyone, thanks for the time. Chris, are you able to talk about the appeals process from the assessments you got late last year. Right now, does your current expense guide, does that assume that you win any of the appeals process that you’re currently engaging in?
