What term describes a decrease in the value of a property over time?

Depreciation is the term used to describe a decrease in the value of a property over time. This concept applies to various types of assets, including real estate, and can occur due to factors such as wear and tear, market conditions, or changes in the neighborhood that adversely affect property values.

In real estate, depreciation often reflects the physical and economic deterioration of a property, impacting its market value. Understanding this term is crucial for many aspects of real estate finance and taxation, as it can influence future sales prices, investment analysis, and tax deductions related to property ownership.

Appreciation, on the other hand, refers to an increase in property value, which is the opposite of depreciation. Amortization relates to the gradual paying off of a loan or the systematic allocation of asset costs over time, but it does not directly address property value changes. Depreciation Expense, while it sounds similar, specifically refers to the accounting entry that records the loss in value for accounting purposes, but it does not encapsulate the broader concept of value decline in real estate. Thus, the term that best fits the description of a decrease in the value of a property over time is indeed depreciation.