For which type of property is the cost approach method LEAST useful?

The cost approach method is least useful for an older home in a neighborhood with high turnover because this method primarily focuses on the cost to replace or reproduce a property and is most effective when the property is new or has a high level of standardization. In a neighborhood with high turnover, property values can fluctuate significantly based on market demand and comparable sales. These factors make it challenging to accurately assess the value of an older home using the cost approach, as the cost of construction does not necessarily reflect current market conditions or the desirability of the location.

On the other hand, the cost approach is highly effective for newly constructed properties, where the cost of construction aligns closely with value. For commercial properties, it can be useful as well due to their often standardized and replicable nature. Unique historical properties benefit from the cost approach as well, especially when considering restoration costs, despite their value also being heavily influenced by their uniqueness and historical significance.