It’s a noun.
It is important to accept that language evolves, and sometimes rapidly. I resent objectivist (and modernist at that) notions of right and wrong ways to speak; if one person encodes a message into spoken language, and other people are able to decode it, then communication is occurring and language is being put to good use.
It is, however, also important to say what one means. ‘Ghetto,’ in its adjective form, is usually nothing more than a euphemism which reflects underlying racist and classist sentiments. A messenger asked me the other day, “How ghetto is your company?” By which he meant, “How many poor, middle-aged black men work for your company?”
Seriously, let’s not veil our beliefs. The ghetto-adjective allows people to make blatantly racist and classist statements, yet their prejudices are obscured by the apparent hipness of this new iteration of language. If one says what one truly means, there will be no need to ever use the ghetto-adjective. The next time you hear it, ask yourself, “What is this person really saying?” Sometimes it feels innocuous, like, “This hair-dryer is so ghetto!” And what is the connection there? Poor folks use broken hair-dryers? I’m sure that’s true from time to time, but why not say, “This hair-dryer doesn’t work properly.”
If what we mean is respectful, then we will not hesitate to choose words which accurately reflect our sentiments. If–as we all do to some level–we are harboring racist and classist sentiments, let us confront those rather than obfuscating them with imprecise language.