Economic Obsolescence

Definition of Economic Obsolescence

Loss of desirability and useful life of property due to economic developments (e.g. deterioration of neighborhood or zoning change) rather than deterioration (functional obsolescence). Term as used with respect to valuation of property for taxation is a loss of value brought about by conditions that environ a structure such as a declining location or down-grading of a neighborhood resulting in reduced business volume. Piazza v. Town Assessor of Town of Porter, 16 A.D.2d 863, 228 N.Y.S.2d 397, 398. See also Obsolescence.

That's the definition of Economic Obsolescence in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.