In the 1930’s, building scientists examined the problem of peeling paint across America. The most common feature of the peeling structures was their use of wall insulation. After some study, scientists like Bill Rose set forth construction conclusions as they pertained to moisture, addressing the idea that insulation was the problem. He asserted that insulated buildings retain moisture because the exterior building materials remain colder, water vapor from the inside moves through the wall into cold materials, and that vapor barriers are the solution. Rose highlighted valid points, but distracted builders from two other equally destructive contributors to the peeling paint; poor flashing installation and air leakage.
Read the full article here: The History of Peeling Paint, Insulation, and Vapor Barriers