According to the IAAO definition, what characterizes a neighborhood?

The IAAO (International Association of Assessing Officers) defines a neighborhood as a geographic area that influences property values through specific characteristics and market behaviors. The defining characteristic highlighted in this context is the direct effect on property value. This means that the factors and dynamics within a neighborhood, such as the quality of local amenities, zoning regulations, and overall economic conditions, can significantly impact how much properties are valued.

While schools and parks, population density, and proximity to commercial areas can contribute to the neighborhood's overall characteristics and influence property values, it is the direct relationship between these neighborhood elements and their effects on property value that aligns most closely with the IAAO's definition. The other choices are elements that may describe a neighborhood but do not encapsulate its defining characteristic in relation to property value as effectively as the influence it holds.