Which type of depreciation is nearly always considered incurable?

The type of depreciation that is nearly always considered incurable is external obsolescence. This form of depreciation arises from factors outside the property that negatively impact its value, such as environmental influences, changes in neighborhood demographics, or economic decline in the surrounding area.

External obsolescence is generally viewed as incurable because it often involves broader market issues or external conditions that cannot be easily rectified by improvements or renovations to the property. For example, if a property is located near a new highway that brings noise and traffic congestion, the inherent value drop due to this external factor is not something the property owner can fix by making changes to the structure itself.

In contrast, other types of depreciation like physical deterioration, which involves wear and tear from use, and functional obsolescence, which results from changes in design or utility, can often be addressed through repairs or renovations. Economic obsolescence, while similarly influenced by external factors, is a more specific case often focused on financial impacts but still overlaps with the concepts attributed to external obsolescence. Overall, the distinct characteristic of external obsolescence is its incurable nature due to its reliance on uncontrollable external variables.