Economic obsolescence can be defined as a decline in property value due to what?

Economic obsolescence refers to a reduction in property value that results from external factors that affect the property's desirability and functionality. These external influences can include changes in the surrounding neighborhood, economic conditions, or regulatory changes that negatively impact the property. Options like direct property defects and technological advancements pertain more to issues that affect the property itself, rather than factors outside its control. Similarly, while market supply and demand changes can influence property value, they aren't classified under economic obsolescence unless those changes are external, such as the decline of the surrounding area causing decreased demand. Thus, external environmental influences are the key characteristic defining economic obsolescence, as they highlight how outside factors can lead to a depreciation in property value.