In some places - Detroit is an example - people start leaving, the tax base dwindles, and by the time they realize the need to demolish things, the funds aren't there. In some cases, the city pulls in its borders and declares the former-city areas someone else's problem.
Here's a Detroit residential neighborhood suffering it now: https://www.msn.com/en-us/news/us/eerie-images-of-detroits-m...