NexPoint Residential Trust : June 2024 REITWeek Presentation

J u n e 2 0 2 4

REITWeek

NYSE: NXRT

The Avant at Pembroke Pines, FL

CAUTIONARY STATEMENTS

FORWARD LOOKING STATEMENTS

This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect the current views of the Company's management with respect to future events and financial performance. These statements include, among others, statements relating to the Company's business, strategy and industry in general, the Company's target markets, the sale of Stone Creek at Old Farm, the expected total return, net sales proceeds, IRR and equity multiple, the belief that the Company's value-add strategy will provide both dramatically-improved communities for our residents and outsized returns for our shareholders, the belief that NXRT is the only pure-play,publicly-traded REIT focused on value-add multifamily real property, NXRT's net asset value and the related components and assumptions, 2024 and Q2 2024, NOI and net income guidance and the related components and assumptions the belief that share repurchases are an attractive arbitrage opportunity given the persistent private/public market discount, continued room for rent growth, the progression from apartment to entry-level homeowner is becoming increasingly difficult, projected supply in submarkets, the relocation trend, renewal and new lease trends, rent increases, the belief that the housing market is now permanently more expensive, that deliveries of multifamily residential housing will plummet in 2025-2026, the belief that "B" housing will outperform "A" and "C" housing in times of economic hardship, path to grow from 2025 to 2027, including portfolio strategy and portfolio goals. Statements that include the words "expect," "intend," "estimate," "may," "should," "believe," "seek," "continue," "anticipate" and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities laws or otherwise. Forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause the Company's actual results to differ materially from those indicated in these statements. For a discussion of the factors that could change these forward-looking statements, see our annual and quarterly reports filed with the SEC. The statements made herein speak only as of the date of this presentation and the Company does not undertake to update this information except as required by law. Past performance does not guarantee future results. Performance during time periods shown is limited and may not reflect the performance in different economic and market cycles. There can be no assurance that similar performance will be experienced.

NON-GAAP FINANCIAL MEASURES

This presentation contains non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flows of the Company. The non-GAAP financial measures used within this presentation are net operating income ("NOI"), funds from operations attributable to common stockholders ("FFO"), FFO per diluted share, Core FFO, Core FFO per diluted share, adjusted FFO ("AFFO"), AFFO per diluted share and net debt. NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties. NOI is calculated by adjusting net income (loss) to add back (1) interest expense (2) advisory and administrative fees, (3) the impact of depreciation and amortization expenses, (4) corporate general and administrative expenses, (5) other gains and losses that are specific to us including loss on extinguishment of debt and modification costs, (6) casualty-related expenses/(recoveries) and casualty gains (losses), (7) gain (loss) of extinguishment of debt and modification costs that are not reflective of continuing operations of the properties, (8) gain of forfeited deposits, (9) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees, (10) equity in earnings of affiliates, (11) pandemic expense, (12) gains on sales of real estate and (13) acquisition costs. We define "Same Store NOI" as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods. FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT"), as net income (loss) computed in accordance with GAAP, excluding gains or losses from real estate dispositions, if applicable, plus real estate depreciation and amortization. We compute FFO in accordance with NAREIT's definition. Our presentation differs slightly in that we begin with net income (loss) before adjusting for amounts attributable to redeemable noncontrolling interests in the OP and we show the amount attributable to such noncontrolling interests as an adjustment to arrive at FFO attributable to common stockholders. Core FFO makes certain adjustments to FFO, which are either not likely to occur on a regular basis or are otherwise not representative of the ongoing operating performance of our Portfolio. Core FFO adjusts FFO to remove items such as gain (loss) on extinguishment of debt and modification costs, gain on forfeited deposits, casualty-related expenses/and recoveries and gains (losses), the amortization of deferred financing costs incurred in connection with obtaining short-term debt financing and the noncontrolling interests (as described above) related to these items. AFFO makes certain adjustments to Core FFO. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts Core FFO to remove items such as equity-based compensation expense and the amortization of deferred financing costs incurred in connection with obtaining long-term debt financing and the noncontrolling interests related to these items. Net debt is calculated by subtracting cash and cash equivalents and restricted cash held for value-add upgrades and green improvements from total debt outstanding. We believe that the use of NOI, FFO, Core FFO, AFFO and net debt, combined with the required GAAP presentations, improves the understanding of operating results and debt levels of real estate investment trusts ("REITs") among investors and makes comparisons of operating results and debt levels among such companies more meaningful. While NOI, FFO, Core FFO, AFFO and net debt are relevant and widely used measures of operating performance and debt levels of REITs, they do not represent cash flows from operations, net income (loss) or total debt as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity, operating performance and debt levels. NOI, FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. We present net debt because we believe it provides our investors a better understanding of our leverage ratio. Net debt should not be considered an alternative to total debt, as we may not always be able to use our available cash to repay debt. Our computation of NOI, FFO, Core FFO, AFFO and net debt may not be comparable to NOI, FFO, Core FFO, AFFO and net debt reported by other REITs. For a more complete discussion of NOI, FFO, Core FFO and AFFO, see our most recent Annual Report on Form 10-K and our other filings with the SEC.

ADDITIONAL INFORMATION

For additional information, see our filings with the SEC. Our filings with the SEC are available on our website, www.nxrt.nexpoint.com, under the "Financials" tab. Investors are urged to read our Annual Report on Form 10-K and our other filings with the SEC, including our Forms 10-Q and Forms 8-K, in their entirety.

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NexPoint Residential Trust, Inc. (NYSE:NXRT)

Company Overview

NexPoint Residential Trust, Inc. is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," and is primarily focused on acquiring, owning and operating well-located middle- income multifamily properties with "value-add" potential in large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., which is an affiliate of NexPoint Advisors, L.P., an SEC-registered investment adviser.

We pursue investments in multifamily real property, typically with a value- add component, where we can invest capital to provide "life-style" amenities to "work-force" and middle-income housing. Our value-add strategies seek to provide both dramatically-improved communities for our residents and outsized returns for our shareholders. As of May 31, 2024, NXRT owned 13,174 units across the U.S. in Texas, Arizona, Georgia, Tennessee, Florida, Nevada, and North Carolina.

$36.67

PRICE PER SHARE(1)

13.98%

INSIDER OWNERSHIP(1)

$0.46242

Q2 2024 DIVIDEND PER SHARE

5.04%

YIELD(1)

• (1) AS OF CLOSE OF TRADING MAY 31, 2024.

NexPoint Residential Trust, Inc. (NYSE:NXRT)

NXRT Portfolio and Strategy

As of May 31, 2024, NXRT owned 36 multifamily properties, consisting of 13,174 units, across 11 markets in 7 Southeastern and Southwestern U.S. states.

We believe NXRT is the only pure-play,publicly-traded REIT focused on value-add multifamily real property. The company is focused on acquiring, owning and operating well-locatedmiddle-income multifamily properties with "value-add" potential in large cities, primarily in the Southeastern and Southwestern United States. We target markets that we believe have the following characteristics:

• Attractive job growth and household formation fundamentals
• High costs of homeownership or class A multifamily rental; and
• Elevated or increasing construction or replacement costs for multifamily real property

Our "value-add" program seeks to provide our residents with "life-style" amenities found in newly constructed multifamily property at a reasonable price as well as increase shareholder value for our investors.

During Q1 2024 Same Store revenue and NOI increased 3.6% and 4.0%, respectively, over the prior year period.

36	13,174	$1,507	94.8%
PROPERTIES (1)	UNITS OWNED (1)	AVERAGE MONTHLY	PORTFOLIO
		RENT PER UNIT (2)	OCCUPANCY (2)

• (1) AS OF MAY 31, 2024.
• 1. AS OF MAY 31, 2024. EXCLUDING 23 UNITS DOWN IN THE PORTFOLIO AND SAME STORE PORTFOLIO AS A RESULT OF FIRES AND WATER DAMAGE.

Performance Highlights

FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2024:

• NOI: $41.1M
• Core FFO: $19.7M, or $0.75/diluted share

• Same Store	1Q 2024
Results:
% of Total Units	96.9%	vs. Q1 2023
Occupancy	94.7%	+ 30 bps
Effective Rents	$1,514	- 0.4%
Total revenues	$63,396	+3.6%
NOI	$39,216	4.0%

RATES & OCCUPANCY:

KEY HIGHLIGHTS & TRANSACTION ACTIVITY:

• On March 1, 2024, NXRT completed the sale of Old Farm, located in Houston, TX, for a sales price of $103.0 million , which equates to a total IRR of 22.1% or 2.98x MOIC.
• On March 5, 2024, NXRT paid down $24.0 million on the Corporate Credit Facility.
• • This repayment took the drawn balance on the facility to $0, leaving $350 million of undrawn and available capacity.
• On April 30, 2024, NXRT completed the sale of Radbourne Lake Apartment Homes, located in Charlotte, NC, for a sales price of $39.25 million , which equates to a total IRR of 19.2% or 3.64x MOIC.
• As of May 31, 2024, NXRT has repurchased 438,678 shares for a weighted average price of $33.19 per share, which is a 37% discount to the midpoint of our Q1'24 NAV.
• • We believe this is an attractive arbitrage opportunity given the persistent private/public market discount.
• During the first quarter, NXRT completed 59 full and partial upgrades and leased all 59 units, achieving an average monthly rent premium of $240 and a 21.8% ROI.
• • Since inception, for the properties currently in our Portfolio, we have completed 8,593 full & partial, 4,829 kitchen and laundry appliances, and 12,348 technology packages, resulting in a $169, $39, and $45 average monthly rental increase per unit and a 20.9%, 51.4%, and 37.8% ROI, respectively.

				Purchase			T3/T12	Total Equity		Net Sale		Equity
Property	Status	Purchase Price	Per unit	Sale Price	Per unit	Ins./Tax Adj	Total Return	IRR
Date	Investment	Proceeds	Multiple
						Cap Rate (1)
Silverbrook	SOLD	$30,400,000	$47,352	1/31/2014	$70,000,000	$109,034	4.61%	($8,706,455)	$53,327,116	$19,532,561	33.95%	6.14x
Timber Creek	SOLD	$22,750,000	$64,631	9/30/2014	$49,000,000	$139,205	5.01%	($8,897,331)	$39,597,265	$24,453,679	25.80%	4.45x
Old Farm	SOLD	$84,720,817	$115,423	12/29/2016	$103,000,000	$140,327	5.29%	($23,255,906)	$69,274,037	$49,397,711	22.14%	2.98x
Radbourne Lake	SOLD	$24,250,000	$107,778	9/30/2014	$39,250,000	$174,222	5.18%	($6,936,171)	$25,224,107	$18,618,099	19.24%	3.64x
Stone Creek at	Marketing	$23,332,000	$122,800	12/29/2016	$25,000,000	$131,579	5.38%	($6,603,798)	$14,466,690	$9,008,570	15.81%	2.19x
Old Farm (2)
Total Portfolio		$185,452,817	$86,539		$287,750,000	$134,274	5.06%	($54,399,661)	$201,889,216	$121,010,620	37.81%	3.71x

• (1) NET OPERATING INCOME USED IS THE TRAILING 3-MONTH INCOME ANNUALIZED LESS TRAILING 12-MONTH EXPENSES ADJUSTED FOR BUYER'S MARKET INSURANCE AND TAX RATES.
• 1. VALUES ARE ESTIMATES.

NAV Build

Components of Net Asset Value

(dollar and share amounts in thousands, except per share and per unit data)

Property	NOI	Cap Rate Range (1)			Value Range (2)
Market		Contribution		Min	Max			Min		Max
Texas
Dallas/Fort Worth	10.8%		5.5%	6.0%		$	277,130	$	314,785
Houston	1.0%		5.5%	6.0%			25,002		28,399
North Carolina
Raleigh	4.2%		5.5%	6.0%			107,558		122,173
Charlotte	3.8%		5.5%	6.0%			96,899		110,065
Georgia
Atlanta	12.1%		5.5%	6.0%			309,952		352,067
Tennessee
Nashville	9.5%		5.5%	6.0%			242,166		275,071
Florida
Orlando	8.8%		5.5%	6.0%			225,056		255,636
Tampa	3.8%		5.5%	6.0%			95,952		108,990
South Florida	20.2%		5.5%	6.0%			517,553		587,876
Nevada
Las Vegas	8.5%		5.5%	6.0%			217,453		247,000
Arizona
Phoenix	17.3%		5.5%	6.0%			441,870		501,910
Total / Ave		100.0%		5.5%	6.0%		$	2,556,591	$	2,903,972
NOI ESTIMATE
4Q 2023 NOI Actual							42,162
1Q 2024 NOI Actual							41,089
					Low				High
Estimated 2Q 2024 NOI Guidance		37,916			39,378
2024 NOI Guidance (3)				153,395			159,718

Component			Min				Max
Tangible Assets
Real Estate (2)	$	2,556,591	$	2,903,972
Cash			37,234
Restricted Cash - Renovation Reserves (4)			2,907
Renovation Expenditures (4)			(2,907)
Cash Adjustments (5)				(314)
Fair Market Value of Interest Rate Swaps			73,711
Other Assets			48,560
Radbourne Lake Gross Sale Proceeds (6)			39,250
Value of Assets	$	2,755,032	$	3,102,413
Tangible Liabilities
Credit Facility (7)				-
Mortgage Debt			1,498,277
Total Outstanding Debt			1,498,277
Forward 12-month Principal Payments (5)				(314)
Total Outstanding Debt (FY 2024 Est.)			1,498,963
Other Tangible Liabilities (at Book)			35,520
Value of Liabilities			$1,533,483
Net Leverage (mid-point)				52%
Net Asset Value	$	1,221,549	$	1,568,930
Shares outstanding - diluted (as of March 31, 2024)			26,606
Est. NAV / Share	$	45.91	$	58.97
NAV / Share (mid-point)			$52.44

IMPLIED VALUATION METRICS

		Min			Max
Implied Real Estate Value	$2,556,591	$2,903,972
No. of Units (March 31, 2024 E.) (2)		13,399
Implied Value/Apartment Unit	$190.8	$216.7
Implied Value/Apartment Unit (mid-point)		$203.8

1. MANAGEMENT ESTIMATES BASED ON INDEPENDENT THIRD-PARTY REVIEW OF OUR PROPERTIES.
2. ESTIMATED VALUE RANGES ARE PRESENTED FOR THE EXISTING PORTFOLIO (37 PROPERTIES AS OF MARCH 31, 2024).
3. THE COMPANY ANTICIPATES NET INCOME WILL BE IN THE RANGE BETWEEN APPROXIMATELY $15.2 MILLION AND $21.8 MILLION FOR THE FULL YEAR 2024 AND BETWEEN $9.6 MILLION AND $11.1 MILLION FOR THE SECOND QUARTER OF 2024. FY 2024 NOI GUIDANCE CONSIDERS THE FORECASTED DISPOSITION OF RADBOURNE LAKE AND CONSIDERS A COMMENSURATE VOLUME OF CAPITAL RECYCLING.
4. INCLUDES APPROXIMATELY $2.9 MILLION THAT IS HELD FOR VALUE-ADD UPGRADES; REDUCED BY $2.9 MILLION FOR ESTIMATED 2024 REHAB EXPENDITURES.
5. INCLUDES APPROXIMATELY $0.3 MILLION IN FORWARD 12-MONTH PRINCIPAL PAYMENTS.
6. RADBOURNE LAKE CLOSED ON APRIL 30, 2024.
7. INCLUDES OUTSTANDING BALANCE AS OF MARCH 31, 2024.

6

Update to Capital Structure & Maturities

BALANCE SHEET IMPROVEMENTS:

• NXRT has refinanced 21 property-level mortgages through KeyBank and Freddie Mac, in the aggregate, representing ~52.7% of the Company's total outstanding debt.
• Notably, NXRT agreed to refinance 19 of the 21 property-levelmortgages at interest rate pricing improved from prior terms (SOFR + 155 bps).
• The Company used approximately $278mm of cash from refinancing proceeds and the sale of Hollister Place to pay down the outstanding principal balance of the Company's most expensive debt capital, the corporate credit facility. Further, NXRT has executed its 12-monthextension option on the Revolving Credit Facility, pushing that maturity to June 30, 2025.
• Further, this refinancing activity effectively extends the Company's weighted average debt maturity schedule to ~6.4 years (from ~3.3 years).
• Old Farm was sold on March 1, 2024, with $24 million of net proceeds used to pay down the Company's corporate credit facility to $0 on the drawn balance.
• With the completion of this refinancing, sale of Old Farm, and sale / refinance of Stone Creek at Old Farm, the Company has no meaningful debt maturities until June 2025.
• Refinancing and extending maturities on a significant portion of the Company's first mortgage debt at favorable terms provide greater strategic flexibility, increases liquidity and modestly "de-risks" the Company's balance sheet.

DEBT MATURITY SCHEDULE AS OF 9/30/2022:

Total Debt	Amount (in 000s)	Wtd. Avg Int Rate	Fixed Debt	Amount (in 000s)	Wtd. Avg Int Rate	Floating Debt	Amount (in 000s)	Wtd. Avg Int Rate
2022	$0.0	N/A	2022	$0.0	N/A	2022	$0.0	N/A
2023	20,417.0	4.24%	2023	20,417.0	4.24%	2023	0.0	N/A
2024	729,157.0	5.01%	2024	0.0	N/A	2024	729,157.0	5.01%
2025	207,436.0	4.42%	2025	14,443.0	4.49%	2025	192,993.0	4.11%
2026	423,150.0	4.64%	2026	0.0	N/A	2026	423,150.0	4.64%
2027	46,464.0	4.60%	2027	0.0	N/A	2027	46,464.0	4.60%
2028	100,642.0	4.29%	2028	33,817.0	4.24%	2028	66,825.0	4.32%
2029	124,897.0	4.45%	2029	0.0	N/A	2029	124,897.0	4.45%
2030	0.0	N/A	2030	0.0	N/A	2030	0.0	N/A
2031	41,180.0	4.18%	2031	0.0	N/A	2031	41,180.0	4.18%
2032	0.0	N/A	2032	0.0	N/A	2032	0.0	N/A
Total / Wtd. Avg	$1,693,343.0	4.72%	Total / Wtd. Avg	$68,677.0	4.29%	Total / Wtd. Avg	$1,624,666.0	4.74%
(4.1% of total)	(95.9% of total)

7

DEBT MATURITY SCHEDULE AS OF 4/30/2024:

tal Debt	Amount (in 000s)	Wtd. Avg Int Rate	Fixed Debt	Amount (in 000s)	Wtd. Avg Int Rate	Floating Debt	Amount (in 000s)	Wtd. Avg Int Rate
2022	$0.0	N/A	2022	$0.0	N/A	2022	$0.0	N/A
2023	0.0	N/A	2023	0.0	N/A	2023	0.0	N/A
2024	15,274.0	6.54%	2024	0.0	N/A	2024	15,274.0	6.54%
2025	133,750.0	6.13%	2025	0.0	N/A	2025	133,750.0	6.13%
2026	290,324.0	6.26%	2026	0.0	N/A	2026	290,324.0	6.26%
2027	0.0	N/A	2027	0.0	N/A	2027	0.0	N/A
2028	33,817.0	4.24%	2028	33,817.0	4.24%	2028	0.0	N/A
2029	124,897.0	6.61%	2029	0.0	N/A	2029	124,897.0	6.61%
2030	0.0	N/A	2030	0.0	N/A	2030	0.0	N/A
2031	41,180.0	6.35%	2031	0.0	N/A	2031	41,180.0	6.35%
2032	796,390.0	6.22%	2032	0.0	N/A	2032	796,390.0	6.22%
2033	42,788.0	6.81%	2033	0.0	N/A	2033	42,788.0	6.81%
Total / Wtd. Avg	$1,478,420.0	6.23%	Total / Wtd. Avg	$33,817.0	4.24%	Total / Wtd. Avg	$1,444,603	6.28%
(2.0% of total)	(98.0% of total)

Peer Comparison

Same Store NOI

	2015	2016	2017	2018	2019	2020	2021	2022	2023	FY'24 Guidance
AVB	5.0%	4.3%	2.5%	2.5%	2.2%	-3.7%	-4.6%	13.2%	6.2%	1.3%
CPT	5.2%	3.9%	2.9%	3.2%	3.6%	1.1%	4.8%	14.6%	4.3%	0.0%
EQR	5.1%	3.7%	2.2%	2.3%	3.2%	-4.0%	-8.1%	14.1%	6.2%	1.8%
ESS	8.0%	6.7%	3.7%	3.3%	3.4%	-3.9%	-2.7%	13.2%	4.3%	0.7%
MAA	5.7%	4.2%	2.9%	1.9%	3.4%	2.5%	6.2%	17.1%	6.0%	-1.3%
UDR	5.6%	5.7%	3.7%	3.4%	3.6%	-2.8%	-2.2%	14.2%	6.0%	0.0%
IRT	7.5%	4.5%	4.8%	2.6%	7.7%	3.1%	4.4%	13.7%	5.7%	2.5%
NXRT	34.2%	12.1%	8.6%	7.4%	6.7%	3.2%	5.5%	16.2%	8.2%	0.0%

Total Return as of the Close of Trading May 31, 2024 (1)

$100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000

$-

4/1/2015

4/1/2016

4/1/2017

4/1/2018

4/1/2019

4/1/2020

4/1/2021

4/1/2022

4/1/2023

4/1/2024

NXRT

ESS

EQR

CPT

IRT

MAA

• (1) TOTAL RETURN BASED ON CUMULATIVE DIVIDENDS SINCE INCEPTION AND STOCK PRICE AS OF CLOSING OF TRADING MAY 31, 2024.

Improved Tenant Quality

Incomes of NXRT Renters Are Better Positioned Than	NXRT Tenants Earn 11% Above The National Median
National Average (1)	Household Income (2)

NXRT Resident Demographics As Of April 29, 2024

Markets	Avg Income	Avg Rent	Rent-to-Income	Avg Age
ATL	$92,484	$1,481	19.21%	38
CHA	$76,293	$1,398	21.99%	39
DFW	$71,778	$1,271	21.25%	38
HOU	$102,133	$1,332	15.65%	37
LSV	$70,251	$1,353	23.11%	37
NASH	$80,050	$1,302	19.52%	34
ORL	$81,263	$1,585	23.41%	37
PHX	$82,012	$1,473	21.55%	37
RDU	$93,328	$1,434	18.43%	41
SFL	$108,835	$2,106	23.22%	38
TPA	$79,027	$1,373	20.86%	38
Average Income	$84,855	$1,508	21.32%	37

• (1) SOURCE: YARDI MULTIFAMILY NATIONAL OUTLOOK SPRING 2024.
• 1. SOURCE: JOHN BURNS REAL ESTATE CONSULTING; AS OF APRIL 2024.

Homeownership Increasingly Out of Reach For Many

Low Inventory of Affordable Housing

Housing Unaffordability (2)

• The natural progression from apartment to entry-level homeowner is becoming increasingly difficult for many Americans
• As average mortgage rates have risen to 7.21%, more than 50% of the total household population of the US are currently priced out of a $200K mortgage. (1)
• Most homes built in the past decade have not been entry level, creating a shortage in supply and subsequent price appreciation
• This also assumes qualifying for a mortgage is simple, but tighter lending standards and elevated rates add headwinds to the process
• • In 1Q'07, 15% of mortgage originations were to subprime borrowers with a credit score of < 620. As of 2Q'23, only 3% of mortgages went to borrowers with a credit score less than 620.(2)
• Another key component to household formation, Consumer Sentiment registered
  60.40 in November, 29% worse than the historical average, per University of Michigan Survey data from 1978 to present.
• Only 15% of Fannie Mae National Housing Survey respondents believe it is a good time to buy in November 2023.

Declining Share of First-time Buyers (3)	Income, Price and Mortgage Growth (4)
	Income, Home Price, and Mortgage Payment Growth
		Change from 2020 lows
100%
		83%
80%
60%
	30%
40%	15%
20%
0%
Income	Home Price	Mortgage Payment

1. SOURCE: BANKRATE.COM; AS OF MAY 2024.

10 (2)

SOURCE: JOHN BURNS REAL ESTATE CONSULTING; AS OF APRIL 2024.

1. SOURCE: NAR, JOHN BURNS REAL ESTATE CONSULTING; 2023 DATA.
2. SOURCE: JOHN BURNS REAL ESTATE CONSULTING; AS OF MARCH 2024. ASSUMES HOME PRICE AT 80% OF MARKET MEDIAN, 5% DOWN PAYMENT, 30-YR MORTGAGE WITH MIP.