To decline in prosperity; to become deserted or desolate (e.g., a town or shopping street losing business).
小さな港町は不況で寂れてしまった。
The small port town fell into decline because of the recession.
駅前の商店街が寂れてシャッター通りになっている。
The shopping street in front of the station has declined and become a shuttered street.
観光客が激減して温泉街が寂れている。
With tourists sharply reduced, the hot-spring town has become desolate.
Dated: (of a sound) to taper off or die away gradually.
古い物語では、祭りの太鼓の音が次第に寂れていくと描かれることがある。
In old tales it's sometimes described that the sound of the festival drums gradually dies away.