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.
Growth a period during which the neighborhood or district gains favor and acceptance in the local market. Property values increase. Stability a period of equilibrium without marked gains or losses. Property values remain the same. Decline a period of diminishing demand.