PSI Oklahoma Real Estate Practice Test

Which sequence reflects the typical life cycle of a neighborhood?

1. Stability, decline, growth, revitalization

2. Growth, decline, stability, revitalization

3. Growth, stability, decline, revitalization

4. Revitalization, growth, decline, stability

The correct answer is: Growth, stability, decline, revitalization

The typical life cycle of a neighborhood is best represented by the sequence of growth, stability, decline, and revitalization. Initially, a neighborhood experiences growth as new developments and families move in, contributing to a vibrant community and increasing property values. After this initial phase, the area generally reaches a stable point where the infrastructure supports the resident population, and the neighborhood is well-functioning. However, over time, neighborhoods can experience decline due to various factors such as economic downturns, changes in demographics, or a lack of investment, which may lead to increased vacancies and decreased property values. Following this decline, revitalization can occur, often driven by community efforts, new investments, or urban renewal projects aimed at restoring the neighborhood’s appeal and functionality, thus completing the cycle. This sequence captures the dynamic nature of neighborhoods and the transitions they undergo over time, making it the most accurate representation of their life cycle. The other options do not accurately reflect the typical order or stages as neighborhoods go through growth before experiencing stability and potential decline, followed by revitalization efforts.