What does the Principle of Conformity suggest about property value?

The Principle of Conformity suggests that property values are positively influenced when properties within a neighborhood conform to one another in terms of style, size, and use. Thus, when non-conforming properties exist within a neighborhood—meaning they do not align with the prevailing characteristics of the area—this can lead to a decrease in property values. The presence of these outlier properties disrupts the harmonious character of the neighborhood, potentially making the conforming properties less desirable.

This principle is rooted in the idea that buyers often seek neighborhoods with similar properties, as this can imply stability, community standards, and predicted future value. When properties do not conform, it can signal uncertainty about the desirability of the area, leading to lower demand and, consequently, a decrease in property values for those that do conform to neighborhood standards.