Exterior Insulation and Finish Systems: The Effect on Residential Housing Prices and Marketing Time
Ken H. Johnson (),
Sean Patrick Salter,
Leonard V. Zumpano () and
Randy I. Anderson ()
Additional contact information Ken H. Johnson: Florida Atlantic University, Boca Raton, FL
Leonard V. Zumpano: University of Alabama, Tuscaloosa, AL
Randy I. Anderson: Prudential Real Estate Investors, Parsippany, NJ
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. In this paper, we outline the issues surrounding EIFS use. Subsequently, we develop and test hypotheses 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 our theoretical framework and are compatible with inefficient local real estate markets.
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