Ms. Johnson's concern about a new apartment complex affecting her property value is an example of which principle?

The concern about a new apartment complex impacting property value is best understood through the principle of conformity. This principle suggests that a property's value is influenced by its ability to conform to the standards or characteristics of the surrounding properties. When Ms. Johnson expresses worry about new development nearby, it reflects how changes in the neighborhood's overall characteristics—such as the introduction of a multifamily dwelling—can affect her single-family home's value.

In real estate, properties that conform to the standards and expectations of their surrounding area generally maintain their value better. If a new apartment complex introduces a higher density or a different type of housing than what currently exists, it may lead to variations in property values, causing concerns for existing homeowners like Ms. Johnson. The perceived or real impact on her property's marketability and desirability as a result of this new development reinforces the principle of conformity. This principle emphasizes that a property’s worth is partially determined by how well it fits into its surrounding environment.