Take a good look at your neighborhood before you remodel or build. If you improve beyond what is typical for your neighborhood, don't expect to recover much of your investment very soon. If you really need a bigger or better home, consider moving to a neighborhood where that type of house is the norm. There is a more important economic lesson here for civic leaders. Mixed land use raises overall property values.
Good planning discourages exclusive neighborhoods and helps promote diversity and stability.
Southern California developers learned a long time ago that they need to mingle some entry-level homes along with the higher value homes. The developers were helping to create future home buyers. The Neighborhood Life Cycle Neighborhoods are constantly changing. Market value is influenced by the type of change which is occurring at any particular time. Neighborhoods typically go through the four stages listed below, called the neighborhood life cycle.