What is considered an unearned increment in real estate?

An unearned increment in real estate refers to an increase in property value that occurs due to external factors rather than the efforts of the property owner. In this case, the choice that highlights the increase in value due to inflation and population growth accurately captures the essence of an unearned increment.

Inflation leads to a general rise in prices and can create a corresponding increase in property values, while population growth can spur demand for housing and commercial space, leading to higher prices in a real estate market. Both of these factors are external to the individual property owner and are not a result of any specific actions taken regarding the property itself.

In contrast, the other options involve increments that result from active enhancements or interventions by the property owner, such as planned improvements, effective marketing, or renovations. These activities represent efforts by the owner to directly increase the property's value, thus differentiating them from the concept of an unearned increment, which solely depends on external societal and economic factors.