Final answer:
A lack of 'curb appeal' can lead to a decrease in property value, often contributing to a cycle of neighborhood decay known as capital flight. This issue, coupled with factors like disinvestment and the mortgage crisis, exacerbates the depreciation of properties' values and the deterioration of communities.
Step-by-step explanation:
When a property diminishes in value due to a lack of "curb appeal", such as landscaping and exterior paint, the property has experienced a decrease in marketability and therefore a potential decline in its value.
This deterioration in appearance can lead to a less attractive investment for potential buyers or renters leading to a situation known as capital flight, where investment and resources are withdrawn from a property or area. Capital flight contributes to a cycle of decay in neighborhoods, as we have seen in some of America's older suburbs.
Over time, houses that lack modern appeal or require frequent maintenance often lead to people moving away, especially those with the financial means to do so.
This can result in properties becoming rental units, which might face disinvestment and poor maintenance, sometimes being abandoned or seized due to foreclosure, exacerbating the decline in property values.