Which of the following is NOT a physical characteristic of real estate?

The correct response identifies scarcity as not being a physical characteristic of real estate. Instead, scarcity is an economic principle that relates to the availability of a resource relative to demand. It reflects how limited supply influences market value but does not describe a physical trait of the property itself.

In contrast, the other options—immobility, diversity, and indestructibility—are indeed physical characteristics. Immobility refers to the fixed location of real property; it cannot be moved. Diversity pertains to the unique features and characteristics that differentiate one property from another, emphasizing how no two parcels of real estate are exactly the same. Indestructibility refers to the durability of real estate; while structures may deteriorate, land itself cannot be destroyed, highlighting its permanence.

Understanding these distinctions is crucial for effectively analyzing and evaluating real estate as an asset.