Brad Heffern: Yes, thanks. So, how does the supply picture look for build-to-rent product? And are you seeing increasing competition as we sit here today, either in terms of elevated listings or anything else that you track?
David Singelyn: Yes, on the actual building of build-to-rent, we’re actually seeing that significantly slow the number of people looking to do build-to-rent, including some of the national builders that we’re getting into build-to-rent have pulled back a little bit. A lot of the build-to-rent was private equity, small projects where they would be doing one or two projects. One is, I think their initial models were a little optimistic. But the other piece is the economics that we have talked about that we have worked through. And we have economies of scale. We have vendor rebates, et cetera. We’re in a different place than they are they got impacted. So, they have slowed. We have seen slowing on that side. We have had inquiries from those that are doing build-to-rent as to whether we would like to partner or acquire those build-to-rent projects, in some cases, in mid-flight.
The opportunity there is there if we can find the pricing to make that an attractive opportunity for us. And then I’m sorry, the other — I think there was another part to your question that I may have forgotten.
Brad Heffern: Yes. Just the supply today, are you seeing anything like increased listings that suggest that maybe the competition is more intense right now?
David Singelyn: Well, I don’t — increased listings, when I hear that, Brad, I think of the market. And the MLS market, we are not seeing — we are seeing increased listings from a couple of months ago. But the listings are not at the historical norm levels. I think what you’re seeing is today, there are a number of individuals, households that over the last couple of years have acquired very favorable mortgage notes — loans, maybe in the 2% range. So, for their mobility, if they’re a homeowner to move and list their homes has been challenged. So, there’s less inventory on the market today. Pricing is still a little higher than it would meet our yield and investment targets. But we are seeing some movement in those prices coming down, but they have a ways to go before the viable opportunities for us.
Brad Heffern: Okay. Thank you.
David Singelyn: Thanks Brad.
Operator: Our next question is from Linda Tsai with Jefferies. Please proceed with your question.
Linda Tsai: Hi. In terms of it being 20% more affordable to rent than owned, how much does that vary by market?
David Singelyn: It definitely varies by market. That 20% that we quote is actually a little north of that. I think it’s 24% is the average of our top 20 markets. but obviously, it does vary. They all are more affordable, but they do vary. And I don’t have the range on my hands, Linda.
Linda Tsai: Got it. And then what percentage of your residents are dual income? And would you consider tightening your credit standards in the current environment?
Bryan Smith: Linda, the majority of our residents are, I don’t know the exact number, but it is significantly more than half our dual-income families. In terms of tightening the credit requirements, we’re really pleased with our collections, especially when you look at — when you take away the COVID affected residents and they’re in line with historical norms. So, I wouldn’t anticipate making any adjustments there. The residents who have moved in over the last couple of years are paying and have bad debt that’s very consistent with what we saw pre-COVID. So, I don’t think any changes there are necessary.
Linda Tsai: Thanks. And then just one last one. In terms of pushing those new lease rates, where would you like to be occupancy-wise ideally, if you’re at 97%?
