Economic obsolescence refers to a decrease in property value due to external factors that are beyond the control of the property owner. This can occur when changes in the economy, such as a decline in local industry or increased crime rates, negatively impact the desirability of a location. For example, if a major employer, like a manufacturing plant, closes down, nearby homes may lose value as residents move away in search of jobs. Another cause of economic obsolescence can be changes in zoning laws or the development of undesirable facilities, such as a landfill or power plant, nearby. These external influences can make an area less attractive to potential buyers or renters, leading to a decline in property values. Unlike physical obsolescence, which relates to the condition of the property itself, economic obsolescence is tied to broader economic and social factors.