Bridging New Homes & SFRs -- Latest Proprietary Work Offers Fresh Perspective

Research evidence excerpt

Bridging New Homes & SFRs -- Latest Proprietary Work Offers Fresh Perspective

Equity Research

Multi Company Update — May 19, 2026

Homebuilders

Single-Family Rental REITs

Bridging New Homes & SFRs -- Latest

Proprietary Work Offers Fresh Perspective

SFR Cost Advantage Remains Intact, although Builders Have

Gained Modest Ground vs Last Year

Our Call Wells Fargo REIT & Homebuilding Team

Our Homebuilding & REIT Teams join forces on a fresh collaborative analysis that overlays Wells Fargo Securities, LLC

WellsFargoREITHomebuildingTeam@wellsfargo.com

proprietary new home data vs SFRs. The one-liner: it's still much cheaper to rent vs buy in

Sam Reidmost major markets (negative for entry level builders).

Equity Analyst | Wells Fargo Securities, LLC

Sam.Reid@wellsfargo.com | 727-512-3872

What we did. The goal: quantifying housing costs for new builds/single family rentals James Feldman

from the perspective of the end consumer leveraging Wells Fargo's unique 'Resi Equity Analyst | Wells Fargo Securities, LLC

Ecosystem' (Team Builder + Team REIT). Using our proprietary new build data (w/ fresh James.Feldman@wellsfargo.com | 212-214-5328

updates quantifying other ownership costs, incl taxes/insurance), all overlaid against SFR Eric Cohen, CFA

operating metrics, we quantify cost to occupy from the view of the marginal buyer/renter. Associate Equity Analyst | Wells Fargo Securities, LLC

Ex 1-6 break out everything you need to see. Eric.Cohen@wellsfargo.com | 212-214-8061

Conor Peaks

Builder takes. It costs ~23% more on avg to buy a new home vs renting an SFR (Ex 2); Associate Equity Analyst | Wells Fargo Securities, LLC Conor.M.Peaks@wellsfargo.com | 212-214-8281

and our math includes estimated benefits from builder rate buydowns; in short, even