What principle might describe the relationship between location and property value?

The principle that describes the relationship between location and property value is the Principle of Progression. This principle asserts that the value of a property can increase when it is located in a neighborhood with higher-value properties. Essentially, if a property is situated in a desirable area where surrounding properties are valued higher than the subject property, it can benefit from the overall increase in value of the neighborhood. This is particularly important in real estate, as the location is often a significant factor in determining a property's market value.

The concept of progression highlights that buyers will typically value a property based on not just its features, but also the surroundings that contribute to its perceived worth. Properties that are within a favorable location can be positively influenced by the attributes of nearby properties, enhancing their market desirability and ultimately their value.

In contrast, other principles like the Principle of Substitution relate more to an individual property's value being determined by the cost of acquiring a similar property, rather than the influence of the property's location. Although the principles of Conformity speak to how properties that are similar tend to have greater value when located in a similar context, this principle doesn't capture the dynamic impact that an overall neighborhood's profile has on a property's value as effectively as the Principle of Progression does.