What factor typically causes rapid depreciation in property value?

The factor that typically causes rapid depreciation in property value is obsolescence due to newer alternatives. This phenomenon occurs when a property becomes less desirable because newer, more modern, or more efficient options become available in the market. These alternatives often offer better features, improved technologies, or enhanced functionalities that attract potential buyers, leading them to favor newer properties over older ones.

As a result, properties that do not upgrade or compare favorably to these newer alternatives may see a significant drop in demand, which translates to a faster decline in their market value. This type of depreciation is less gradual than wear and tear, which accumulates over time through physical deterioration, and it differs from the natural aging process of a property, where value reductions might be more consistent and predictable. Market fluctuations can affect property values but are typically driven by external economic factors rather than the intrinsic value of the property itself in relation to newer alternatives.