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OPPORTUNITY ZONE HOME PRICE TRENDS MIXED IN FIRST QUARTER 2023, MATCHING PATTERNS NATIONWIDE

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Median Home Values Decline in About Half of Zones Targeted for Economic Redevelopment; Trends Mostly Match Broader Nationwide Market Slowdown; But One Measure Shows Opportunity Zones Holding Up Slightly Better Than Other Local Markets ATTOM, a leading curator of land, property, and real estate data, released its first-quarter 2023 report analyzing qualified low-income Opportunity Zones targeted by Congress for economic redevelopment, in the Tax Cuts and Jobs Act of 2017. In this report, ATTOM looked at 3,587 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the first quarter of 2023. The report found that median single-family home and condo prices stayed the same or decreased from the fourth quarter of 2022 to the first quarter of 2023 in 52 percent of Opportunity Zones around the country, where there was sufficient data and fell at least 3 percent in almost half. At the same time, though, they increased by at least that much in about 40 percent of those markets. Those mixed patterns largely matched trends in neighborhoods outside the zones, as a slowdown in the national housing market, which began during the second half of 2022, continued into 2023 after a decade of almost unceasing growth. By one key measure, Opportunity Zone markets even showed signs of holding up slightly better than other neighborhoods around the country during the first quarter of this year. Median prices in those areas were more often still higher compared to the point when the U.S. market began to flatten out last year. “Home-price trends inside Opportunity Zones keep following along with the broader national picture, as they have for the past couple of years,” said Rob Barber, chief executive officer for ATTOM. “Through boom times and weaker times, values inside the zones have gone up or down at about the same pace as the national market. They’re even doing a little better these days, depending on how you look at. The latest numbers provide a sign that areas targeted for the program’s tax breaks are resilient during a time when the broader market is no longer heading ever higher.” Opportunity Zones are defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet various criteria for redevelopment in all 50 states, the District of Columbia and U.S. territories. Census tracts, as defined by the U.S. Census Bureau, cover areas that have 1,200 to 8,000 residents, with an average of about 4,000 people. As in the past, typical home values in Opportunity Zones continued to fall well below those in most other neighborhoods around the nation in the first quarter of 2023. Median first-quarter prices were less the U.S. median of $321,135 in 79 percent of Opportunity Zones. That was about the same portion as in earlier periods over the past year. In addition, median prices remained less than $200,000 in 55 percent of the zones analyzed during the first quarter of 2023. High-level findings from the report: Media Contact:Christine Stricker949.748.8428christine.stricker@attomdata.com

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U.S. home prices are down 2.7%, the smallest decline in over a month, and prices are dropping in fewer metros The median U.S. home-sale price fell 2.7% during the four weeks ending May 14, the smallest decline in over a month. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Monthly mortgage payments hit a record high due to still-high prices and elevated mortgage rates. On a local level, home prices are declining in 28 of the 50 most populous U.S. metros, down from a high of 32 metros at the end of April. That’s a reflection of a mismatch between demand and supply propping up prices. Pending home sales are down 15% from a year earlier, but that’s much smaller than the 24% decline in new listings. Today’s elevated mortgage rates continue to discourage homeowners from selling; nearly all of them have a mortgage rate below 6%, while this week’s average 30-year rate was 6.39%. The dearth of new listings has drained inventory, with the total number of homes for sale dropping over the past two months, going against typical seasonal trends. The share of homes selling that are doing so within two weeks (48%) is also bucking seasonal trends, illustrating urgency from buyers who don’t have much to choose from. That share has steadily increased over the last two months, while it typically falls this time of year. “High mortgage rates continue to dictate the housing market. Although a lot of homebuyers have acclimated to rates in the 6% range and many are finding ways to lower their monthly payments, like using a 2-1 buydown, high rates are handcuffing potential sellers,” said Redfin Deputy Chief Economist Taylor Marr. “It’s hard to imagine a flood of new listings until rates come down at least into the 5s. For those who are selling now, the silver lining of giving up a low rate is that hardly anyone else is doing the same thing. That means buyers, who are hungry for new listings, will bite—and they don’t have much power to negotiate the price down.” Newly built homes could help alleviate the inventory shortage even if rates remain elevated, and there are signs more may be coming. U.S. homebuilder confidence rose for the fifth straight month in May, hitting its highest level in nearly a year, and permits for single-family homes rose to a seven-month high in April. Housing-market trends are playing out differently in different parts of the country, but agents in most metros are reporting that demand is outpacing supply. In Boise, ID, which had one of the hottest markets in the country during the pandemic, Redfin Premier agent Shauna Pendleton says today’s buyers are having a hard time finding homes because homeowners are sitting on 3% mortgage rates and aren’t moving unless they’re leaving the state. “I’m practically begging potential sellers to list, especially those in the more affordable price point because those are the homes buyers are hungry for,” Pendleton said. “Every listing I’ve had since January priced at under $400,000 has had multiple offers within a few days on the market. I listed a home at the end of April at $399,900 and we ended up with four offers by the fourth day; it ended up going for $10,000 over list price. I even listed one at $650,000 that got multiple offers and went pending in under 48 hours.” In Fort Lauderdale, FL, home prices are up 9% year over year, more than anywhere else in the U.S. except Milwaukee. Redfin team manager Andrea Duke said Fort Lauderdale prices are holding up well because South Florida is a popular destination. “There’s almost always demand for this area because people move here for the weather, and a lot of them pay in cash,” Duke said. “If a home is priced well and it’s in great shape, the seller will get multiple offers. But the market isn’t quite as hot as it was last year; most buyers are still including contingencies in their offers.” Leading indicators of homebuying activity: Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, this data covers the four-week period ending May 14. Redfin’s weekly housing market data goes back through 2015. For bullets that include metro-level breakdowns, Redfin analyzed the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-fewer-metros-home-price-declines-low-inventory

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Multifamily firm releases new pet data and announces a new brand hero timed with National Pet Month. Pet policies, such as size restrictions and pet deposits, are the top consideration for apartment dwelling dog-owners nationwide when looking for a new place to live (86%) – beating out considerations like cost (82%) and location (77%). This data is among findings from a new survey by Cortland, a vertically integrated, multifamily real estate investment, development and management company that manages more than 250 apartment communities comprised of more than 80,000 homes throughout the U.S. The survey also uncovered that 70% of respondents say they are more likely to do business with a company that openly supports dog causes and charities than one that does not and 76% of respondents think it’s important for their dogs to have pet friends nearby when considering where to live. Additional survey insights include: “The survey underscores that pets are as much of a priority for apartment dwellers as they are to us, which motivates our team to continue to provide our residents, with hospitality-driven apartment living experiences with the whole family in mind,” said Tim Hermeling, Cortland Executive Vice President of Marketing. “From yappy hours and other pet-friendly events to leash-free bark parks and dog grooming stations and spas, Cortland communities have a variety of amenities and policies that ensure that pets feel welcome and at home.” With pets top of mind and heart, Cortland has also rolled out a new brand campaign featuring a talking pug named Cortie, who speaks about Cortland’s continued commitment to unmatched hospitality that makes apartment residents feel valued at home. The fully integrated marketing campaign will include connected tv spots, billboards, and other advertising across Cortland’s key Sunbelt markets to support the key mission of building awareness and engagement among prospective renters. “We strongly believe that apartments are more than buildings. At Cortland, our apartment homes are just that – homes. We pride ourselves on providing residents with a better living experience built around friendship, personal engagement, family, and community,” said Hermeling. “Our new brand icon, Cortie, adorably embodies all those qualities, reflecting our brand promise and differentiation in a memorable and engaging way.” Cortland has more than 250 pet-friendly apartment communities across the United States and has partnered with many local animal shelters to help find shelter animals a good home. Most recently, the firm waived its pet fees for its community residents in Atlanta following an urgent call from the Dekalb County Animal Shelter, which led to the adoption of more than dogs now happily living in Cortland communities across metro Atlanta. For more details on pet-friendly policies, visit Cortland.com. About Cortland: Cortland is a vertically integrated, multifamily real estate investment, development, and management company focused on delivering resident-centric, hospitality-driven apartment living experiences. Headquartered in Atlanta, Cortland manages and is invested in, directly or indirectly, more than 250 apartment communities comprised of more than 80,000 homes in the U.S. with regional offices in Charlotte, Dallas, Denver, Houston, Orlando, and Phoenix. Cortland has significant experience in acquiring, developing, renovating, owning, and operating multifamily communities, leveraging the services of its construction, design, and property, asset, and investment management affiliates. Internationally, Cortland maintains a management and development platform in the UK.

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New Home Construction Solidifies as Prospective Buyers Shift Further Away from Existing Home Market The economy is still expected to enter a modest recession in the second half of the year, though unusual dynamics in the current economic cycle continue to complicate forecasting the exact timing, according to Fannie Mae’s Economic and Strategic Research (ESR) Group latest monthly commentary. Fundamentally, the ESR Group notes that consumer spending remains unsustainably high compared to incomes and that recession is the typical conclusion to a monetary policy tightening regimen. However, the usual channels through which monetary policy helps slow the economy may be disrupted, as evidenced by recent increases in new auto sales resulting from improving supply conditions and a more upbeat outlook from homebuilders. Still, the ESR Group believes a modest recession is the likeliest outcome – and that its timing remains the principal outstanding question – as the Fed is likely to maintain tighter policy for longer if wage-related inflationary pressures do not subside. Existing home sales have been largely in line with the ESR Group’s recent forecasts for further gradual declines throughout the year due to affordability constraints and an extraordinarily tight inventory of existing homes for sale. This is partially a result of the so-called “lock-in effect,” in which existing homeowners are disincentivized from listing their homes for sale because their existing mortgage rate is well below current market rates. As such, housing demand has shifted further toward the new home market, bolstering builder optimism and the ESR Group’s single-family starts forecast. However, on the multifamily side, the ESR Group continues to expect a significant slowdown in starts later this year resulting from tightening credit conditions, slower rent growth, and higher vacancy rates. “There are select data available to support several alternative views of the path of the economy, though we maintain our view that a modest recession will begin in the second half of 2023,” said Doug Duncan, Senior Vice President and Chief Economist, Fannie Mae. “Housing remains exhibit number one for why we expect the recession to be modest. It continues to outperform our expectations, and we expect that its relative strength will help kickstart the economy into expanding again in 2024. Inflation has been resistant to Fed efforts to drive it down, and we view the risks to our baseline forecast as tilted toward more tightening rather than easing – although, for the moment, the Fed has adopted a wait-and-see approach.” Visit the Economic & Strategic Research site at fanniemae.com to read the full May 2023 Economic Outlook, including the Economic Developments Commentary, Economic Forecast, Housing Forecast, and Multifamily Market Commentary. To receive e-mail updates with other housing market research from Fannie Mae’s Economic & Strategic Research Group, please click here. SOURCE Fannie Mae

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Cost-of-living concerns are top of mind amongst Americans while rent-to-income ratios (RTI) remained elevated in Q1, according to Moody’s Analytics US State of Rent Burden report and data interactive tool. While seasonal slowness and rising multifamily inventory moderated rent growth, the number of US primary metros still experiencing higher rent burdens plummeted from 49 metros down to only five, a 91% drop from Q4 2022 to Q1 2023. RTI – the percentage of gross income a median-income tenant pays for the average monthly rent – finally cooled after more than three years of steepening rates nationwide. “The fever is finally breaking. Since Q4 2019, 82% of metros had higher rent-burdens compared to pre-COVID because rent disproportionately rose faster than incomes,” wrote Lu Chen, Senior Economist, and Mary Le, Economist, Moody’s Analytics. “Rising mortgage rates caused many households to be priced out from homebuying and would-be buyers to remain renters. Apartment demand surged as a result and drove rates sky high. The vast majority (91%) of all metros finally caught a break from growing rent burdens in Q1, as rent growth moderated or even declined given affordability pressures and slowing migration. However, we are not quite at an inflection point yet.” Even with this near-term relief, the cost of shelter remains significantly elevated relative to wages when compared to past decades. In 1999, just one metro was rent-burdened: New York City, with the median NYC household allocating 53.5% of their income to the average-priced apartment. Today, seven US metros fall within this designation: NYC (now 66.9% RTI), Miami (42%), Fort Lauderdale (36.8%), Los Angeles (34.7%), Palm Beach (34.2%), Northern New Jersey (33%), and Boston (32.8%). COVID-19 only exacerbated this issue. NYC’s RTI increased 8.4% between Q4 2019 and Q1 2023. Many metros followed suit, forcing several to become “rent-burdened”, meaning the typical household pays 30% or more of their income to rent. In Q4 2022, the US became “rent-burdened” nationwide for the first time in nearly 25 years of Moody’s Analytics tracking history. “As wage growth trails behind the cost of shelter, Americans are feeling financially distressed,” continued Chen and Le. “With rent growth projected to hover around 2% annually, national RTI will stay mostly flat for the year (29.7%). That is still uncomfortably elevated and only trailing behind last year’s broken record.” About Moody’s Analytics Moody’s Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. Moody’s Analytics, Inc. is a subsidiary of Moody’s Corporation (NYSE: MCO). With approximately 14,000 employees in more than 40 countries, Moody’s combines international presence with local expertise and over a century of experience in financial markets. Contacts Julianne Wileyjulianne.wiley@moodys.com970.445.4768

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Firm’s Customized Due Diligence and Document Management Services Enable Trading Participants to Reduce Risks and Act with Agility Incenter Diligence Solutions, a provider of due diligence and document management services for the mortgage industry, announces expanded offerings for the mortgage servicing rights (MSR) trading market. These offerings complement the trading services provided by Incenter Mortgage Advisors—another member of the Incenter LLC family of companies focused on improving mortgage operations. “In an active trading market, participants must be able to quickly identify and manage their short-term and long-term risks so that they can transfer assets with agility and seize new revenue opportunities,” said Pamela Hamrick, President of Incenter Diligence Solutions, formerly known as Edgemac. “Incenter Diligence is streamlining obstacle-ridden diligence processes without making them cookie-cutter. We are customizing each engagement to address the unique goals, strategies and best-execution practices of every client.” “In today’s high-volume trading environment, buyers and sellers need a diligence firm that can customize reporting in a timely manner. Sellers also benefit from a system for maintaining data consistency to ensure that they have all the elements regulators require—for CCAR purposes, for example. Our clients consider Incenter Diligence an invaluable partner in both these areas,” said Tom Piercy, Managing Director, Incenter Mortgage Advisors. For each buyer or seller, Incenter Diligence’s highly experienced due diligence team creates a tailored review scope based on seasoning, geography, performance and other key portfolio attributes. The firm also individualizes reporting and document delivery services. This approach encompasses all of Incenter Diligence’s MSR-related services, such as acquisition reviews, data to document validation, compliance reviews, document inventory, trailing document reconciliation, servicing boarding audits, and pay history reviews. When loan servicing institutions are selling the servicing rights to thousands of loans at once, they need to flag any potential issues that could affect the long-term collectability of these assets. Incenter Diligence’s document management solutions for scanning and automated data extraction utilize advanced technology to rapidly ingest all loan files, scrape critical data from the documents, and identify discrepancies and omissions across them. Moreover, Incenter Diligence is improving sellers’ visibility into their assets by transforming “information blobs” containing hundreds of pages of variously formatted loan documents into one clearly indexed, easy-to-search resource in a single format. Ms. Hamrick, who joined Incenter Diligence last fall, has spearheaded these enhanced services, drawing on her 35 years of mortgage industry experience. In prior roles, she has led all aspects of highly successful mortgage fulfillment operations platforms. For more information, see incenterdiligence.com or contact Ms. Hamrick at pamela.hamrick@incenterms.com. About Incenter Diligence Solutions Incenter Diligence Solutions provides due diligence and document management services for the mortgage industry—enabling originators and investors to streamline operations, reduce risks, and capitalize on growth opportunities with speed and agility. The firm, which also specializes in supporting the MSR trading ecosystem, tailors its review scope and document delivery services to clients’ unique requirements. For more information on Incenter Diligence, a Rating Agency approved, third-party review firm, see incenterdiligence.com. Contacts Contact Dawn Ringel, Incenter MarketingDawn.Ringel@incenterms.com or 617-285-0652