The relationship between neighborhood home values and home ownership is a complex one. Generally, an increase in home ownership within a neighborhood can have a positive impact on home values. Here are a few reasons why this might occur:

1. Pride of Ownership: Homeowners typically have a vested interest in maintaining and improving their properties. They often invest in renovations, landscaping, and general upkeep, which can enhance the overall appeal of the neighborhood. A well-maintained and attractive neighborhood can drive up home values.

2. Stability and Community Investment: Homeowners tend to stay in their homes for longer periods compared to renters. This stability creates a sense of community and encourages residents to invest in local amenities, such as parks, schools, and businesses. These community investments can increase the desirability of the neighborhood and positively impact home values.

3. Spillover Effect: When a neighborhood experiences an increase in home ownership and rising property values, neighboring areas can also benefit. Buyers who may have been priced out of the initial neighborhood might look to nearby areas, driving up demand and subsequently increasing property values in those locations.

While these factors suggest a positive correlation between home ownership and neighborhood home values, it’s important to note that real estate markets can be influenced by various factors, including economic conditions, local development, and market trends. Additionally, each neighborhood’s dynamics and specific circumstances may differ, so it’s essential to consider the broader context.