Which of the following is an example of functional obsolescence?

Functional obsolescence refers to a reduction in the value of a property due to factors that make it less desirable or less useful than modern standards dictate. This typically arises from out-of-date designs or features that fail to meet contemporary expectations or necessities. In this context, an outdated design reflects a change in consumer preferences, functionality requirements, or aesthetics.

For example, a house with a floor plan that does not accommodate modern living, such as having too few bathrooms or insufficient living space for the size of families today, would be considered functionally obsolete.

Other options may reflect various issues that affect a property's value, but they do not directly represent functional obsolescence. Poor-quality building materials may indicate a need for repairs or renovations, economic decline in a neighborhood relates more to external conditions affecting market value, and lack of parking spaces can point to practical usability issues but does not specifically pertain to the design or layout of the property itself.