Which external factor would NOT typically be classified as an externality?

The classification of externalities involves considering factors that impact an entity from outside its immediate control. Externalities are commonly defined as costs or benefits that affect third parties who did not choose to incur that cost or benefit.

Interior design choices made by the homeowner are decisions that occur within the confines of the property and are entirely under the homeowner's control. These choices relate specifically to the personal preferences and aesthetic considerations of the owner, and they do not generate effects on external parties in the same way that changes in local employment rates or property values would. Consequently, interior design choices do not contribute to external costs or benefits, differentiating them from external factors that do influence other individuals or properties in the vicinity.

In contrast, factors like changes in local employment rates can lead to increased demand for housing or influence property values, increases in nearby property values can affect the perceived worth of surrounding properties, and accessibility to public transportation can have significant implications for property desirability and accessibility—all of which are externalities that impact broader communities or markets rather than the isolated decisions of one homeowner.