Which of the following is a factor that can cause economic obsolescence?

The correct answer is that natural disasters can cause economic obsolescence. Economic obsolescence refers to a loss in property value caused by external factors that are usually out of the owner's control. Natural disasters, such as floods, hurricanes, or earthquakes, can significantly impact the attractiveness and usability of properties in affected areas. These events can lead to increased risks for future purchasers and may deter investment or occupancy, ultimately causing a decline in property values.

In contrast, property renovations typically enhance a property's value by improving its condition or appeal, rather than diminishing it. Changes in local zoning laws can also have varying impacts on property values, often providing potential for increased use or development rather than causing obsolescence. Improvements in community services, like better schools, parks, or public transportation, tend to increase property values by making an area more desirable. Therefore, while all these factors affect real estate values, natural disasters are specifically noted for causing economic obsolescence due to their negative impact on the broader environment surrounding a property.