The Price Related Differential (PRD) measures what within a group of properties?

The Price Related Differential (PRD) is an important statistic used in the field of property appraisal to assess the level of assessment accuracy and equity among properties within a specific group. It specifically measures bias in property valuations. A PRD greater than 1.0 indicates that higher-valued properties are being assessed at a lower proportion of their market value compared to lower-valued properties, suggesting a bias against higher-priced properties. Conversely, a PRD less than 1.0 indicates a potential bias favoring higher-valued properties.

By analyzing the PRD, appraisers and assessors can identify discrepancies in property assessments, allowing them to ensure that the taxation or valuation methods applied are equitable across various property values, which is crucial for maintaining fairness in property taxation systems.

In contrast, the other options represent different concepts that do not align with the specific focus of the PRD. Uniformity pertains to the consistency of assessments across properties, value proportion relates to the relationship of assessed values to market values, and market demand reflects the level of interest from buyers in the market. These aspects, while relevant to property appraisal discussions, do not encapsulate what the PRD specifically measures, which is bias within assessed valuations.