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Suburban sprawl refers to the uncontrolled expansion of urban areas into surrounding rural land, which can lead to a variety of outcomes in the real estate market. The correct choice, indicating that suburban sprawl can lower values in established urban areas due to increased supply and competition for buyers, reflects a fundamental economic principle related to supply and demand.

When suburban areas expand, they often attract residents who might otherwise have considered living in urban centers. This influx can increase the available housing supply in suburban areas, making homes there more accessible and potentially less expensive. As a result, the established urban areas may see a decrease in demand, which can drive down property values. This dynamic occurs because buyers seeking affordability may choose newer suburban developments over older urban properties, leading to greater competition among suburban homes and reduced interest in urban options.

In contrast, the other options do not accurately capture the typical effects of suburban sprawl. While it's true that properties in rural areas can see increased demand due to lifestyle changes, the relationship is more complex and doesn't universally translate to all rural settings. The idea that suburban sprawl would have no significant impact on real estate markets overlooks the broader economic shifts it can create. Similarly, sprawl does not necessarily lead to a heightened demand for luxury properties;