DEFINITION of ‘Economic Blight’
The visible and physical decline of a property, neighborhood or city due to a combination of economic downturns, residents and businesses leaving the area, and the cost of maintaining the quality of older structures. These factors tend to feed on themselves, with each one contributing to an increase in the occurrence of the others.
BREAKING DOWN ‘Economic Blight’
Although many larger cities and rural manufacturing communities struggle with economic blight, the rapid rise of premium real estate prices over the last few decades led to renewed interest in these areas. Individual investors, as well as large developers, joined forces to successfully renovate and revitalize many areas struggling with economic blight, making a handsome profit along the way.