Which of the following can lead to property depreciation?

Property depreciation can occur due to various factors, and one significant contributor is structural issues and market decline. When a property has structural problems, such as foundation issues, roof damage, or outdated systems, it can significantly decrease its value. Potential buyers tend to view such properties as risky investments and may offer much lower prices or avoid them altogether, which leads to depreciation.

Additionally, a decline in the overall market, influenced by economic factors like high unemployment rates, decreasing population, or a saturation of available properties, can lead to a reduction in property values. As demand for real estate drops, prices tend to follow suit, resulting in depreciation of even well-maintained properties.

In contrast, increased demand in the housing market, improvements made to the property, and new schools nearby generally contribute to appreciation rather than depreciation. Increased demand can drive prices up, improvements enhance property value, and new schools typically attract families, which can also boost the local real estate market. These factors often lead to improved property values rather than a decline.