Ghetto

A A A

DEFINITION

A run-down urban area primarily inhabited by a single minority group. Ghettos are often characterized by high unemployment, high crime, gang activity, inadequate municipal services, widespread drug use, high rates of dropout from school, broken families and an absence of businesses. As a result, real estate value in ghetto communities are generally much cheaper than in other communities.



INVESTOPEDIA EXPLAINS

Ghettos may be identifiable by physical characteristics such as large numbers of poorly maintained buildings, large amounts of graffiti, trash or debris accumulated in the street or on properties, and weedy vacant lots. Racial zoning laws, mortgage lending discrimination and income disparity contributed to the creation of many ghettos in the United States in the mid-20th that still persist to this day.


RELATED TERMS
  1. Poverty Gap

    The average shortfall of the total population from the poverty line. This measurement ...
  2. Poverty

    A state or condition in which a person or community lacks the financial resources ...
  3. Negative Income Tax - NIT

    A guaranteed minimum income plan advocated by economist Milton Friedman in 1962 ...
  4. Federal Poverty Level - FPL

    The set minimum amount of gross income that a family needs for food, clothing, ...
  5. Standard Of Living

    The level of wealth, comfort, material goods and necessities available to a ...
  6. Realtor Property Resource (RPR)

    A National Association of Realtors member benefit providing realtors with online ...
  7. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned ...
  8. Collaborative Consumption

    The shared use of a good or service by a group.
  9. Forbearance

    A temporary postponement of mortgage payments.
  10. Warranty of Title

    A guarantee by a seller to a buyer that the seller has the right to transfer ...
Related Articles
  1. An Introduction to Microfinance
    Insurance

    An Introduction to Microfinance

  2. Standard Of Living Vs. Quality Of Life
    Fundamental Analysis

    Standard Of Living Vs. Quality Of Life

  3. Are We Losing The Middle Class?
    Personal Finance

    Are We Losing The Middle Class?

  4. The Rise And Fall Of The Shadow Banking ...
    Personal Finance

    The Rise And Fall Of The Shadow Banking ...

  5. 6 Steps to Become a Real Estate Agent
    Professionals

    6 Steps to Become a Real Estate Agent

  6. What's the difference between housing ...
    Investing Basics

    What's the difference between housing ...

  7. How does my debt-to-income (DTI) ratio ...
    Home & Auto

    How does my debt-to-income (DTI) ratio ...

  8. Understanding The National Association ...
    Entrepreneurship

    Understanding The National Association ...

  9. How does Fannie Mae (FNMA) make money?
    Home & Auto

    How does Fannie Mae (FNMA) make money?

  10. As Boomers Slow Down, Will The Economy ...
    Investing News

    As Boomers Slow Down, Will The Economy ...

comments powered by Disqus
Hot Definitions
  1. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  2. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  3. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  4. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  5. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
  6. Rounding Bottom

    A chart pattern used in technical analysis, which is identified by a series of price movements that, when graphed, form the shape of a "U". Rounding bottoms are found at the end of extended downward trends and signify a reversal in long-term price movements.
Trading Center