Functional obsolescence is typically caused by:

Functional obsolescence refers to a reduction in a property's value due to features that are no longer desirable or effective for current market needs. This often arises from inherent inadequacies within the property that make it less functional or appealing compared to newer or better-designed alternatives. For example, a home with an outdated floor plan, insufficient electrical outlets, or obsolete fixtures may suffer from functional obsolescence because these features do not meet the needs or preferences of today's buyers.

Inherent inadequacies can manifest in several ways, such as an inefficient layout, lack of modern amenities, or outdated design elements that do not align with current trends. This type of obsolescence is distinct from external factors like market demand fluctuations, environmental issues, or zoning changes, which can impact property values but do not directly result from the property’s physical characteristics or design elements.