What does economic life refer to in property valuation?

Economic life in property valuation refers to the duration that a structure adds value to a property. This concept focuses on the effective utility and marketability of the property over time, rather than just the physical state or age of the structure. It considers factors such as wear and tear, market demand, and changes in the neighborhood that can influence how long the property remains valuable to potential buyers or users.

When assessing economic life, appraisers analyze how much longer the property is expected to generate income or retain worth before it needs significant investment or improvements that may not be financially viable. The other options may touch on aspects of a property's physical condition or functional obsolescence but do not capture the essence of economic life, which is specifically about the added value over a period of time.