A major employer relocates, leaving homes vacant. This situation is an example of?

The scenario described illustrates incurable economic obsolescence, a concept in real estate valuation and property management. When a major employer relocates, this can lead to a significant decrease in demand for housing in the area, resulting in vacant homes. This situation arises from external factors beyond the control of a property owner, such as shifts in the job market or local economy.

Incurable economic obsolescence reflects a decline in property value caused by external conditions that are unlikely to be remedied. Unlike physical deterioration, which relates to the physical condition of the property, or functional obsolescence, which considers issues related to the property's layout or design, incurable economic obsolescence emerges from broader economic trends. In the case of the major employer relocating, the homes are left vacant not due to any defect or deterioration in their physical state, but rather due to a decrease in demand resulting from the loss of employment opportunities in the area. This type of obsolescence typically cannot be corrected and can have a lasting impact on the local real estate market.