Rehabilitation activity is one of the most visible forms of neighborhood change, yet the qualitative and quantitative aspects of the physical stock and variations therein are not paid their due attention. Studies of neighborhoods emphasize changes in the demographic and socio-economic aspects of neighborhoods and the activity of the residential property market (DeGiovanni, 1983; Goetze, 1979; Pattison, 1983; Smith, 1979). While one needs to study and interpret secondary data on geographical areas to assess signs of changes in socio-economic composition and property values, renovated buildings are direct indications of investment and change. Here, it is argued that the effects of rehabilitation are not limited to the visible improvement of the physical stock but also extend to increases in the property values, and that property values affect socio-economic composition. Thus, rehabilitation ultimately connects to the types of changes normally emphasized in neighborhood theory.