Which factor is considered a physical/environmental influence on real estate value?

Air quality is indeed considered a physical or environmental influence on real estate value because it directly affects the desirability and livability of an area. High air quality generally contributes to a healthier environment, leading to increased demand for properties in locations where air pollution is minimal. Conversely, poor air quality can deter potential buyers, impacting property values negatively. Environmental factors like air quality, water sources, climate conditions, and even noise levels can significantly influence how properties are perceived and, ultimately, their market value.

While employee wages, social trends, and interest rates are important economic indicators that affect the real estate market, they do not fall under the category of physical or environmental influences. Employee wages pertain to economic conditions; social trends relate to changes in societal behaviors and preferences, and interest rates are financial metrics that influence borrowing costs and investment decisions. These factors can certainly impact real estate demand, but they do not directly stem from the physical or environmental aspects of a property or location.