Which example illustrates functional obsolescence?

The chosen example of a property where all bedrooms are on the second floor, but the only bathroom is on the first floor, effectively illustrates functional obsolescence because it highlights an inefficiency in the property's design that negatively impacts its utility and desirability. Functional obsolescence refers to a reduction in the value of a property due to outdated features or poor layout that do not meet current market expectations or consumer needs.

In this case, the need to navigate stairs to access a bathroom from the bedrooms can be seen as a significant inconvenience for residents, potentially leading to dissatisfaction and a decrease in overall value. This mismatch between the layout and modern expectations for convenience, especially in homes where ease of access and functional flow are key concerns, exemplifies functional obsolescence.

The other examples provided do not illustrate functional obsolescence as clearly. A building with a crack in the foundation suggests physical deterioration, which would generally be classified as physical obsolescence. A barn that needs painting reflects cosmetic neglect, which doesn't directly relate to the fundamental function or usability of the property. A single-family home in a community with a high unemployment rate indicates economic obsolescence that stems from external market conditions rather than the property's design or features.