Define "economic obsolescence."

Economic obsolescence refers specifically to a decrease in property value caused by external factors that are beyond the control of the property owner. This can include a variety of elements such as changes in the surrounding neighborhood, economic downturns, shifts in zoning laws, or the presence of undesirable features nearby, such as a landfill or a noisy highway.

This type of obsolescence is significant because unlike physical deterioration, which can be remedied through repairs or renovations, economic obsolescence is outside the owner's ability to influence directly. Understanding economic obsolescence is crucial in valuation, as it affects how properties are assessed and the prices they can command in the market. This definition distinguishes economic obsolescence from other forms of obsolescence, which may pertain more to the property's physical structure or immediate renovations.