The Real Estate Encyclopedia & Blog

Progression, Principle of

by | Feb 6, 2026

In real estate appraisal, the principle of progression states that the value of a lesser valued property tends to increase when it is located among or near higher valued properties. The surrounding properties exert a positive influence on the lower valued residence.

This principle reflects the impact of neighborhood characteristics on property value. Buyers are often willing to pay more for a modest home when it is situated in a well maintained or higher priced area, resulting in enhanced market value.