Jessica purchases a property in a homeowners’ association (HOA) community. Jessica hires a local contractor to make significant upgrades to the property, such as the installation of a renovated bathroom and an addition which adds living space to the property. A pool is also installed in the backyard. The other property owners in the neighborhood do not properly maintain their properties and do nothing to upgrade them. When Jessica later sells the property, what principle of value will be illustrated?

The principle of regression holds that the value of the best property in a neighborhood will be adversely affected by the value of other properties in the neighborhood. In this question, the property owner adds numerous significant upgrades. However, none of the owner’s neighbors improve their properties to a similar degree, nor do they properly maintain them. Thus, the neighboring properties exert a negative influence on the subject property which is no longer in keeping with the characteristics of the surrounding community. Both answers the principle of regression and the principle of progression are tied to answer the principle of conformity