Final answer:
Homes near a newly built water filtration plant may experience economic obsolescence, which is a loss of property value due to external factors, not physical wear or outdated design.
Step-by-step explanation:
When a water filtration plant is built in a residential area, homes in the vicinity may experience economic obsolescence. Economic obsolescence refers to the loss of property value due to external factors, as opposed to the physical wear and tear or changes in design that make a property obsolete. In this case, the presence of an industrial facility like a filtration plant could potentially lead to a decrease in home values due to noise, traffic, or even perceived risk of contamination.
By comparison, physical depreciation refers to the actual wear and tear on a property, while accelerated depreciation is when a property declines in value faster than it normally would due to excessive use or other factors. Functional obsolescence, on the other hand, occurs when a property is no longer useful or desirable because of an outdated design or technological advancements that have made its features obsolete.