When property values start increasing during neighborhood renewal, what stage of the neighborhood life cycle is occurring?

The stage of the neighborhood life cycle characterized by the increase in property values due to neighborhood renewal is known as rejuvenation. This period typically follows a phase of decline, where the area may have experienced disinvestment or neglect. During rejuvenation, improvements such as renovations, the construction of new developments, and the influx of new residents contribute to the revitalization of the neighborhood.

As property values rise, it signals an increased interest in the area, often spurred by investments from both private developers and public initiatives aimed at restoring the neighborhood's appeal. This stage is crucial as it fosters economic growth, enhances community safety, and improves the overall quality of life for residents.

Understanding this phase is essential for appraisers and investors, as it reflects the market's positive sentiment towards the area, impacting their assessments and future investment strategies. In contrast to other stages, such as decline or equilibrium, rejuvenation embodies renewal, vitality, and upward momentum in property values.