Which of the following does NOT contribute to increasing home equity?

Home equity is the portion of a property that the homeowner actually owns, calculated as the current market value of the home minus the outstanding mortgage balance. Among the options listed, one does not directly affect the homeowner's equity in their property: cleaning up the neighborhood.

Paying down the loan principal directly increases a homeowner's equity because it reduces the outstanding balance on the mortgage. As the principal decreases, the amount of equity the homeowner has in the property increases.

Making capital improvements to the property can also boost home equity. When homeowners make renovations or improvements, such as remodeling a kitchen or adding a bathroom, the overall value of the home may increase, leading to greater equity.

Increasing energy efficiency, through upgrades like new windows or insulation, can improve the home's value and ultimately lead to an increase in equity as the property becomes more desirable and potentially commands a higher market price.

In contrast, while cleaning up the neighborhood can enhance the overall aesthetic and desirability of the area, it does not have a direct financial impact on an individual homeowner's equity. It may contribute to a long-term increase in property values in the neighborhood, indirectly affecting the local real estate market, but it does not immediately enhance the equity of a specific home for the homeowner.