Which type of depreciation is characterized as being almost always incurable?

Economic obsolescence is characterized as being almost always incurable because it arises from external factors that affect the value of the property rather than directly from the property itself. This form of depreciation typically results from changes in the economic environment, such as the decline of the local economy, the construction of a new highway that reroutes traffic away from an area, or changes in zoning laws that negatively impact property values.

Unlike physical deterioration, which can often be remedied through repairs or maintenance, or functional obsolescence, which may involve updating a property to meet current standards or expectations, economic obsolescence is not something that the property owner can easily control or fix. It reflects broader economic realities that influence market conditions and property desirability, making it a permanent and usually incurable condition affecting the property’s value.