How does the principle of "conformity" affect property values?

The principle of "conformity" suggests that property values are enhanced when properties in a given area are similar in size, style, and use. This idea is rooted in the notion that uniformity in a neighborhood can create a more appealing environment for potential buyers, leading to higher demand and, subsequently, higher property values. When properties conform to a common standard or characteristic, they collectively bolster the market perception of the area, which can encourage investment and further development.

For instance, in a neighborhood where homes are predominantly single-family houses of similar architectural styles, potential buyers may be more inclined to pay higher prices due to the perceived stability and aesthetic consistency of the area. Conversely, when properties are diverse in design or purpose, it might create an uneven market perception, as buyers could view the area as less desirable, which can lead to potential decreases in property values in that context.

This understanding of conformity is essential for assessors as they evaluate property values, ensuring that they take into account the surrounding properties and overall neighborhood dynamics.