A neighborhood's percentage of owner-occupied versus tenant-occupied units matters because:
Correct Answer
C) Tenure mix influences maintenance levels and market perception
Why this is correct: The mix of owner-occupied and rental properties in a neighborhood influences its character. Owner-occupants often have a longer-term commitment, potentially leading to better maintenance and stability. This perception affects market values, as noted in the explanation. Why the other choices are wrong: Tenant-occupied homes are not always worth less; value depends on many factors. Both owner-occupied and tenant-occupied properties can be appraised. Lenders do not prohibit lending in mixed-tenure areas, though they may have specific guidelines. Exam tip: Tenure mix is a descriptive market characteristic that can signal stability or risk.
Why This Is the Correct Answer
Why this is correct: The mix of owner-occupied and rental properties in a neighborhood influences its character. Owner-occupants often have a longer-term commitment, potentially leading to better maintenance and stability. This perception affects market values, as noted in the explanation. Why the other choices are wrong: Tenant-occupied homes are not always worth less; value depends on many factors. Both owner-occupied and tenant-occupied properties can be appraised. Lenders do not prohibit lending in mixed-tenure areas, though they may have specific guidelines. Exam tip: Tenure mix is a descriptive market characteristic that can signal stability or risk.
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