Property Valuation
Which of the following would indicate that a neighborhood is in the 'decline' phase of the neighborhood life cycle?
ANew construction is occurring throughout the neighborhood
BProperty values are rising steadily and vacancy rates are low
CDeferred maintenance is common, vacancy rates are rising, and property values are falling✓ Correct
DThe neighborhood is experiencing its highest demand and lowest vacancies
Explanation
The decline phase of the neighborhood life cycle is characterized by increasing deferred maintenance, rising vacancy rates, falling property values, and disinvestment. The typical cycle is: growth → stability → decline → revitalization (or continued deterioration).
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