What is the term for the positive effect larger homes have on the value of smaller homes in the same neighborhood?

The term that describes the positive impact that larger homes have on the value of smaller homes within the same neighborhood is referred to as progression. This concept stems from the idea that in a neighborhood where more expensive, larger homes are present, the values of surrounding smaller homes can increase as a result. It reflects the general principle of how property values can influence one another based on the overall quality and desirability of a neighborhood.

In this context, as larger homes are built or exist in proximity to smaller homes, they tend to elevate the market perception of the overall area. Buyers are willing to pay higher prices for the small homes due to the presence of very desirable larger resi­dences nearby, leading to higher assessed values and potentially higher sale prices.

The other terms do not apply in this situation. Regression refers to the scenario where the presence of less expensive or lower-quality properties negatively impacts the value of more expensive homes. Contribution speaks to how much a particular feature adds to the overall value of a property rather than a comparative increase between different sizes of homes. Appreciation refers to the increase in property value over time due to a variety of factors, including market trends and economic conditions but does not specifically address the relationship between larger and smaller homes within a neighborhood.