Every neighborhood, whether urban or suburban, passes through several phases in its life cycle.  The first is a period in which it grows most rapidly. Home buyers are attracted to it and prices are on the rise.  When prices reach a more or less steady state, the neighborhood enters it second stage.  This stable period may last up to 40 to 50 years.

Finally and inevitably, the neighborhood enters a period of decline as newer areas beginning their own patterns of growth become more attractive to residents.  Now the neighborhood’s houses may become accessible to a lower-income group less able to spend money on maintenance and improvements, with a resulting deterioration of the neighborhood.  Houses may be converted to other uses such as apartments, boarding houses or offices. They may be completely razed to make way for large apartment or office buildings.  In any case, the character of the neighborhood changes drastically.

Since neighborhoods are dynamic by nature, home buyers must be able to tell what stage a given neighborhood is in.  The first factor to check is population.  The growth in population for each year in the last five or ten years is a good indication of where in the cycle the neighborhood is.  If population is rising, the neighborhood is probably on the way up.  The population should also be studied in terms of the occupations represented in the neighborhood.  A health percentage of junior executives, foremen, skilled craftsmen and professional people is usually a good sign.