What would external obsolescence typically be caused by?

External obsolescence is a type of depreciation that occurs when the value of a property is negatively impacted by external factors beyond its control. This can include neighborhood crime rates, which can deter potential buyers or renters, reduce demand, and consequently lower property values. High crime rates often lead to perceptions of safety concerns, affecting desirability and, therefore, the market value of homes in the vicinity.

While aspects like age of the property, market conditions, and interior design choices can influence property value, they are typically classified under different categories of obsolescence or depreciation. Age is more associated with physical wear and tear, market conditions represent shifts in the economic landscape affecting pricing trends, and interior design choices pertain to a property's functional utility rather than external influences. Thus, neighborhood crime rates distinctly exemplify the external factors leading to external obsolescence.