What does economic obsolescence refer to?

Economic obsolescence refers to the loss in value of a property resulting from external factors that are typically beyond the control of the property owner. This can include changes in the neighborhood, such as a decline in the local economy, increased crime rates, changes in the zoning laws, or the presence of undesirable land uses nearby (like a landfill or industrial development). These external influences can negatively impact the desirability and marketability of the property, leading to a reduction in its overall value.

In the context of property appraisal, understanding economic obsolescence is crucial, as it helps assessors and appraisers accurately determine the value of a property while considering all potential influences that may be impacting its worth. The other options relate more to issues directly associated with the property's physical condition or design rather than external factors.