What does the term 'economic obsolescence' relate to in property assessment?

The term 'economic obsolescence' in property assessment specifically refers to a decrease in property value that results from external factors affecting the property rather than from any physical deterioration or age. This can include aspects such as changes in the local economy, shifts in market demand, or the presence of undesirable external influences such as increased crime rates, environmental contamination, or a decline in the neighborhood's desirability. This external pressure can diminish the appeal and marketability of a property, leading to a tangible loss in value.

In contrast, the other options focus on intrinsic qualities of the property such as age or standards, which are generally considered types of depreciation that arise from the property's condition or the potential costs to remedy outdated features. Economic obsolescence is uniquely based on influences beyond the control of the property owner or the physical characteristics of the property itself.