Property values decline. Revitalization a period of renewal, modernization and increasing demand. Property values increase. The neighborhood life cycle is related to the natural aging process of buildings and other improvements. The cycle is also affected by supply and demand in the local real estate market and other forces outside the neighborhood.
Gentrification is a process which can trigger a revitalization cycle.
This occurs when affluent buyers purchase and rehabilitate old or run-down properties and displace lower income residents. Gentrification typically takes place in urban areas, but it is also occurring in rural areas of Mendocino County. Blockbusting is an unethical practice which can trigger a decline cycle. Real estate speculators induce panic selling by exploiting racial prejudices within a neighborhood, making people believe that the racial or ethnic makeup is changing and causing them to sell below market value. Large public investments can also revitalize surrounding neighborhoods.