Exterior Insulation and Finish Systems: The Effect on Residential Housing Prices and Marketing Time

Recently, the use of artificial stucco (formally known as Exterior Insulation and Finish Systems, or EIFS) on residential real estate properties has been a topic of much debate. This article discusses the issues surrounding EIFS use. Hypotheses are developed and tested regarding the impact of EIFS on property value and marketing time. The results indicate that the market is not discounting EIFS clad homes, but that the presence of EIFS significantly extends a property’s marketing time. These findings are consistent with the theoretical framework and are compatible with inefficient local real estate markets.