In the 1970s, the Bronx was plagued by a wave of arson. The burning of buildings was predominantly in the poorest communities, like the South Bronx. The most common explanation of what occurred was that landlords decided to burn their low property-value buildings and take the insurance money as it was more lucrative to get insurance money than to refurbish or sell a building in a severely distressed area. The Bronx became identified with a high rate of poverty and unemployment, which was mainly a persistent problem in the South Bronx.
What paid more than fixing up or selling a building in a bad section of South Bronx?
poverty and unemployment