What factor can lead to obsolescence in a property?

Obsolescence in a property typically occurs when it becomes less desirable or functional due to external factors. Changes in the market, such as new technology or shifting buyer preferences, can significantly impact a property's value and attractiveness. For example, if a neighborhood sees the introduction of smart home technology or energy-efficient designs in newly constructed homes, older properties without these features may be perceived as outdated or less desirable by buyers. Furthermore, if trends shift towards open floor plans while a property features a more traditional layout, it may also contribute to its obsolescence. This dynamic illustrates how external changes can render a property less competitive within the market, thus affecting its overall value and desirability.

In contrast, consistent demand for properties in the area and regular maintenance and upgrades typically help to maintain or increase a property's value. Increased property taxes may affect the overall profitability of owning a property but do not directly lead to obsolescence in terms of the property’s functional appeal or market competitiveness.