Ghetto

AAA

DEFINITION of 'Ghetto'

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 'Ghetto'

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 ...
  2. Poverty

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

    A guaranteed minimum income plan advocated by economist Milton ...
  4. Standard Of Living

    The level of wealth, comfort, material goods and necessities ...
  5. Federal Poverty Level - FPL

    The set minimum amount of gross income that a family needs for ...
  6. Gentrification

    Gentrification refers to when a neighborhood or city undergoes ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Insurance

    An Introduction to Microfinance

    Is microfinance a way to help the poor, or will it just make them poorer?
  2. Fundamental Analysis

    Standard Of Living Vs. Quality Of Life

    What is the difference between a standard of living and quality of life? Find out in this breakdown.
  3. Personal Finance

    Are We Losing The Middle Class?

    Find out where your income and lifestyle put you compared to the national average.
  4. Options & Futures

    Give Yourself More Options With Real Estate Options

    Real estate options have many benefits, including a smaller initial capital requirement.
  5. Investing

    Looking To Invest In the Third-Largest Pharmacy?

    Rite Aid Corporation's $4 billion purchase of the Eckerd retail pharmacy chain during the Great Recession might not have been its savviest decision.
  6. Options & Futures

    How To Make Money WIth Real Estate Options

    Buying real estate options is one way to invest in real estate at a lower entry cost.
  7. Personal Finance

    Will Your Net Worth Be Affected By A Recession?

    Here's a look at how a potential recession could impact your net worth in a negative way.
  8. Home & Auto

    What does "In Escrow" Mean?

    Escrow is a financial agreement involving two parties, usually a buyer and a seller. The buyer deposits money, securities or other funds into the escrow account, where they are held until both ...
  9. Investing

    Arm's Length Transaction

    An arm’s length transaction describes business deals in which the buyer and seller act independently and with no interest in the other’s benefit.
  10. Economics

    The Beginning Of A Bear Market?

    Monday, Friday and Thursday marked the worst three-day streak for U.S. stocks since 2011.

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center