Competitive restorative value is designed to counteract the effects of which historical practice?

• A. Zoning
• B. Gentrification
• C. Foreclosure
• D. Redlining

Answer: (D)

Competitive restorative value targets the lingering effects of discriminatory housing practices that distorted property values in the past. Redlining was a systemic pattern where lenders and insurers refused or limited financing in certain neighborhoods, often based on race or ethnicity. This created disinvestment, poorer maintenance, and artificially depressed home values in those areas, even when a property itself had solid market appeal. The idea behind competitive restorative value is to adjust valuations to reflect what a fair, undistorted market would likely yield—recognizing and counteracting those historical biases so that appraisals don’t perpetuate past inequities. Zoning, gentrification, and foreclosure relate to other dynamics of value but do not address the historical practice of redlining and its long-term impact on neighborhood valuations in the same corrective way.