What is meant by "uneconomic obsolescence"?

Uneconomic obsolescence refers to a reduction in a property's value caused by external factors that are typically beyond the control of the property owner. These adverse external factors could include changes in the surrounding neighborhood, such as the development of undesirable land uses (like a landfill or industrial facility nearby), economic downturns impacting demand, or shifts in demographics that negatively affect property desirability. This form of obsolescence is distinct from functional obsolescence, which occurs due to issues within the property itself, such as outdated design or inadequate features.

In this context, the correct answer highlights the impact of external conditions on property value, illustrating the importance of recognizing how factors outside the property itself can lead to a decrease in value. Other options describe concepts related to obsolescence or value changes but do not accurately represent the definition of uneconomic obsolescence.