Which principle states that value is maintained when a property meets market demands?

The principle that states value is maintained when a property meets market demands is known as conformity. This principle suggests that a property's value is closely tied to how well it conforms to the expectations and standards of the surrounding properties and the market as a whole. When properties in a neighborhood have similar characteristics and meet the needs and desires of potential buyers, their values are generally upheld. For instance, a home that fits well with the architectural style, size, and features of other homes in the area is likely to maintain its value better than one that is drastically different or out of place.

In contrast, the other principles mentioned do not directly address the alignment with market demand in the same way. For example, highest and best use refers to the most profitable use of a property, while regression is about how the value of a superior property may decline due to the presence of less desirable properties nearby. Substitution involves the principle that a property’s value is capped by the cost of acquiring an equally desirable property, which also does not specifically highlight the importance of conformity to market demands.