Functional obsolescence may occur due to which of the following?

Functional obsolescence refers to a decrease in the value of a property due to outdated features or inefficiencies that no longer meet current market preferences or standards. When a property has outdated designs, amenities, or systems that are no longer desirable or functional, it can lead to reduced demand and a corresponding decline in value. This could include outdated kitchen designs, lack of modern technologies, or inefficient layouts that do not cater to the needs of contemporary buyers or tenants.

For instance, a home with a single bathroom might be less desirable than a similar home with multiple bathrooms given today's family dynamics. This contributes to the perception that the property is less functional or valuable, resulting in functional obsolescence.

While other factors such as high demand for a specific property type, changes in zoning laws, and environmental factors can influence property value, they do not directly relate to the specific concept of functional obsolescence, which centers on the internal characteristics of the property itself and how they align with current market needs and expectations.