What is Economic Blight?

Economic blight occurs when an area of a town shows visible signs of age, disrepair, and crime.

How Does Economic Blight Work?

For many people, thinking about the 'bad side of town' is to think about economic blight. Often, blighted areas contain vacant or boarded-up buildings, weedy sidewalks, broken windows, and crime. Blight occurs when businesses leave an area of town, taking jobs and property tax dollars with them. The residents of those areas are more likely to be unemployed as a result. Unemployment tends to trigger other characteristics of blight.

Why Does Economic Blight Matter?

Blight is more than just an opinion; many municipalities have legal definitions of blight. For this reason, blighted areas may be subject to eminent domain laws, in which municipalities can seize property and sell it or redevelop it in a manner that will generate more property tax revenue and be more visually appealing or attractive to businesses.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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