What type of obsolescence typically cannot be remedied through renovations?

Economic obsolescence is a type of obsolescence that arises from external factors affecting property value, often beyond the control of the property owner. This can include local economic downturns, changes in zoning laws, the decline of the neighborhood, or the construction of undesirable facilities nearby (such as a landfill or a large industrial plant). Unlike functional obsolescence, which pertains to issues related to the property's design or layout—and can often be remedied through renovations or upgrades—economic obsolescence reflects broader market forces. These external factors are typically difficult, if not impossible, to remedy through physical renovations to the property itself, as they are tied to conditions outside the property’s boundaries. Therefore, economic obsolescence represents a reduction in value that is attributable to external circumstances rather than the inherent characteristics of the property or its maintenance.