In real estate, economic obsolescence is primarily characterized by what?

Economic obsolescence refers to a decrease in property value that is attributable to external factors that a property owner cannot control. This form of obsolescence often arises from influences such as changes in the surrounding neighborhood, economic downturns, or shifts in local demographics that negatively impact property values. Since these factors are external, property owners typically cannot address or rectify them through improvements to the property itself.

In contrast, the other options suggest issues that either stem from internal property conditions, such as poor maintenance or deficiencies in technology, or from changing buyer preferences which, while impactful, are within the scope of market trends rather than uncontrollable external circumstances. Therefore, the defining characteristic of economic obsolescence is its dependence on factors outside the owner’s control, highlighting how external market dynamics can affect property valuation.