Which principle suggests that property value is created and maintained through equilibrium?

The principle that suggests property value is created and maintained through equilibrium is the Principle of Balance. This principle posits that the maximum value of a property is achieved when there is a harmonious relationship between the various forces affecting property, such as supply and demand, as well as the different components of a property itself, such as land, improvements, and surrounding amenities. When these elements are in balance, they contribute positively to the property’s overall value.

For instance, if too much land is available compared to demand, property values may decrease. Alternatively, if too many improvements are made without regard to the local market, it could lead to an oversupply of high-end features that do not match buyer expectations. Essentially, the Principle of Balance emphasizes the importance of having these factors in equilibrium to sustain property value effectively.