Final answer:
Functional obsolescence is the type of depreciation linked to inefficient architectural design that leads to reduced property desirability and can contribute to capital flight in aging neighborhoods.
Step-by-step explanation:
The type of depreciation associated with inefficient architectural design is often referred to as functional obsolescence. This occurs when a property is less desirable because of an inherent flaw in the structure, layout, or design that cannot be easily corrected. For example, a building with an awkward floor plan or one that lacks modern amenities may fall prey to functional obsolescence.
Capital flight can be a related concept where investors withdraw their funds from an area due to decreasing property values, often as a result of functional obsolescence or other forms of depreciation. As homes or buildings age and their designs become outdated or inefficient, they may require substantial upgrades or repairs. If the cost of these improvements outweighs the expected benefits, property owners may choose to disinvest, leading to a cycle of decay and potential abandonment. It is a critical issue impacting real estate values and neighborhood vitality.