Homeowners in neighborhoods where Replacement Housing is occurring benefit from it through higher than average appreciation rates. Replacement Housing tends to be neighborhood-specific. All neighborhoods are not conducive to it or equal in terms of their appeal or attractiveness. The actual reasons for this vary, but two of the primary ingredients are area desirability and the availability of marginal housing which can provide building sites at an economically viable price.

Each neighborhood in which Replacement Housing occurs develops its own unique profile in terms of average home sale price, site costs and maximum sales price ceiling. These in turn determine the size, square footage and amenities of its new offerings. Each neighborhood tends to develop its profile independently with price ranges and sizes varying widely among them. Buying patterns can be determined by analyzing the percentage of new homes in relation to the existing housing stock, their clustering or nucleating patterns, and their physical profiles and price ranges. Social and political sentiments as well as the attitude of residents toward new housing can also affect these buying patterns positively or negatively.