Final answer:
The major cause of loss of value in real property is capital flight, which refers to the movement of resources from one market to another. As resources move away from a specific area, it leads to a decrease in demand for real estate and a decline in property values.
Step-by-step explanation:
The major cause of loss of value in real property is capital flight. Capital flight refers to the movement of resources, such as labor, capital, and entrepreneurs, from one market to another.
When capital flight occurs in a specific area, it leads to a decrease in demand for real estate, resulting in a decline in property values. This can be seen in the example of neighborhoods experiencing decay as houses age and people with enough money move away, leading to disinvestment and poor maintenance of properties.