What type of depreciation is most likely caused by external factors such as economic downturns?

Economic obsolescence refers to a decrease in property value due to external factors beyond the property owner's control, such as changes in the local economy, shifts in neighborhood conditions, or adverse governmental actions. This type of depreciation can significantly impact property values, making it crucial for real estate professionals to understand and identify when properties are affected by external conditions.

In the context of the other types of depreciation, functional obsolescence often involves issues with the property's design or amenities that make it less desirable, while physical obsolescence pertains to the deterioration of the property's physical condition. Curable depreciation refers to depreciation that can be remedied with repairs or improvements, which does not encompass the external factors contributing to economic obsolescence. Thus, when considering depreciation caused by economic downturns or external influences, economic obsolescence is distinctly the most appropriate classification.