The influence on property values brought about by a net benefit related to the value of public goods less their cost is referred to as:

Question

Quizplus · Accepted Answer

The influence on property values that results from the net benefit of public goods is called the capitalization effect. This effect is calculated by subtracting the cost of providing public goods from their value, and the resulting figure is added to the value of surrounding properties. The capitalization effect may result in a capital gain for property owners, but it is not the same thing as a capital gain in and of itself. The other options listed (capital loss and depreciation effect) are not applicable in this context.

The Influence on Property Values Brought About by a Net