Final answer:
The statement that a loss in value due to factors external to the property, referred to as neighborhood blight, is called external obsolescence is true. Such loss of property value is typically a result of broader economic and social changes in a neighborhood.
Step-by-step explanation:
The statement is true. A loss in value due to factors external to the property, such as neighborhood blight, is indeed called external obsolescence. In the field of real estate, external obsolescence refers to a decline in property value caused by factors outside the property itself, as mentioned in the question.
Neighborhood blight, resulting from various factors including capital flight, deindustrialization, or decay, leads to a situation where properties lose their value due to changing external circumstances.
This type of obsolescence is often beyond the control of any individual property owner and can be challenging to rectify. It can be exacerbated by the cycle of disinvestment, poor maintenance, and eventual abandonment, leading to broader economic and social externalities for the community impacted by such changes.