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

The concept of "conformity" in real estate refers to the principle that properties exhibiting similar characteristics within a neighborhood tend to maintain or increase in value more effectively than those that are atypical or do not fit within the surrounding environment. When properties conform to area standards—such as architectural style, size, and overall use—they are more likely to be appealing to buyers and investors.

This is because conforming properties benefit from the community's overall desirability, which includes factors such as aesthetics, functionality, and alignment with zoning regulations. When buyers are looking for homes, they often prefer properties that blend well within the context of the neighborhood. Such conformity can lead to a greater demand for those properties, thus supporting higher property values.

In contrast, properties that are atypical may struggle to find buyers at the same price point, as they may be viewed as outliers that do not meet the expectations of prospective homeowners in that area. Properties that do not conform can also present challenges regarding financing and insurance, which can negatively impact their marketability and value.

Therefore, the assertion that properties conforming to area standards tend to retain higher value is grounded in real estate principles and market behavior regarding desirability, community standards, and buyer preferences.