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. 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.