Exterior Insulation Foam Systems are fast becoming a real problem in construction. These systems hold moisture in and in a short time will rot out all the wooden members inside this "air and moisture tight" wrap. Irregardless (regardless) of what the manufacturers, installers and others who like this system say, there are a lot of lawsuits out there. Stay away from EIFS homes and buildings. Buyer Beware!!!
Actually it is Exterior Insulation FINISHING System and it is air and moisture tight, but the problem is from water getting in around improperly designed and/or installed flashing and sealing systems and not being able to escape. If it is trapping interior moisture that is a separate problem of insufficient moisture barriers. This type of finish was not really designed (in Europe and successfully used for years) for use over wood framing, it is best over masonry. Despite the lawsuits the use of EIFS is growing in the range of 10 - 15% a year, especially for decorative purposes that would be cost prohibitive with natural materials. Rather than buyer beware, it should be buyer be cautious, check out your builder and installer carefully.