Which of the following is NOT considered a fundamental factor in real estate economics?

Valuation is not considered a fundamental factor in real estate economics because it is primarily a process or method used to determine the value of real estate, rather than a fundamental economic driver. Fundamental factors in real estate economics focus on the relationship between supply and demand, and how these elements interact to influence market conditions.

Supply refers to the total amount of real estate available for sale or lease in the market, while demand pertains to the desire and ability of consumers to purchase or rent real estate. Government regulation also plays a crucial role as it can impact land use, zoning, and property rights, thereby influencing both supply and demand. Understanding valuation is essential in assessing property, but it does not directly drive market dynamics like the other elements do.