Which of the following is considered a physical characteristic affecting property value?

The correct answer is based on the understanding that physical characteristics of a property are tangible attributes that impact its value. Nearby educational institutions are classified this way because they represent locational and structural factors that can enhance the desirability and marketability of a property. The presence of reputable schools can positively influence property values due to an influx of families seeking quality education for their children, making such locations more sought after in the real estate market.

In contrast, elements such as economic downturns, social preferences, and government policies are more abstract and relate to economic conditions, societal trends, or regulatory frameworks rather than the physical characteristics of a property. While they undoubtedly have an impact on property values, they do so through indirect channels rather than through the tangible aspects of the property itself.