Lakewood, a municipality located in Ocean County, approximately 50 miles to the east of Philadelphia, holds the distinction of being the most economically challenged town in New Jersey. According to the data from the U.S. Census Bureau in 2019, Lakewood had a poverty rate of 40.5%, which was the highest among all places in the state with a population of at least 1,000.
Remarkably, Lakewood’s poverty rate surpasses that of nearly every city in the United States, with Pharr, Texas being the sole exception. In this blog post, we will delve into the factors contributing to Lakewood’s high poverty rate and explore both the hurdles and possibilities that the town confronts.
The Historical Background of Lakewood
Established in the late 19th century as a resort destination for affluent visitors from New York and Philadelphia, Lakewood was renowned for its picturesque lake, upscale hotels, and golf courses. The town also drew in many Jewish immigrants and subsequently became a hub for Orthodox Judaism in America.
Over the course of the 20th century, Lakewood experienced transformative shifts affecting its economic landscape and demographics. The Great Depression, World War II, and suburbanization led to a decline in tourism and the closure of numerous hotels. Simultaneously, the town’s population became more diverse with an influx of African Americans, Hispanics, and immigrants from various countries.
The Demographics and Lifestyle of Lakewood
Lakewood presents a stark contrast in terms of economic disparities, with a substantial gap between the wealthy and the impoverished. With a population of around 106,000 residents, it ranks as the seventh-largest municipality in New Jersey. The town is also home to one of the largest yeshivas (Jewish religious schools) globally, Beth Medrash Govoha, boasting over 6,500 students.
The Orthodox Jewish community accounts for approximately half of the town’s population, profoundly influencing its culture and politics. Additionally, Lakewood houses a sizable Hispanic community, primarily from Mexico and Guatemala, along with various other ethnic and religious groups. The median household income in Lakewood stands at $47,533, well below the state average of $89,703, and the town grapples with a high unemployment rate of 9.9%, compared to the state average of 6.7%.
Challenges Faced by Lakewood
Lakewood confronts a range of challenges tied to poverty and social issues, including a pressing shortage of affordable housing driven by the town’s rapid population growth. With a population density of 3,800 people per square mile, Lakewood significantly exceeds the state average of 1,200, resulting in overcrowded or substandard living conditions for many residents, as well as eviction and homelessness risks.
Educational attainment is another concern, with many residents lacking a high school diploma or college degree. The town’s public schools are both underfunded and underperforming, characterized by low test scores and graduation rates. Additionally, tensions and conflicts between different groups in the town, such as Orthodox Jews and non-Jews, whites and minorities, and natives and newcomers, have led to incidents of discrimination, harassment, violence, and hate crimes.
Opportunities for Lakewood
While Lakewood faces significant challenges, it also possesses opportunities for improvement. Economic development is a promising avenue, with the town’s strategic location near major highways and airports, as well as access to valuable natural resources such as water and land, making it an attractive prospect for businesses and investors.
Furthermore, Lakewood boasts a diverse and entrepreneurial workforce, with numerous small businesses and self-employed individuals. Social integration initiatives and organizations are also in place to promote dialogue and cooperation among the town’s diverse groups. Lakewood’s rich and vibrant culture and heritage present opportunities for celebration and shared appreciation among all residents.
The Prospects for Lakewood’s Future
Lakewood’s history and present circumstances are undeniably intricate and challenging, yet the town possesses a bright and hopeful future, provided it can surmount its difficulties and harness its strengths. Collaborative efforts from various stakeholders, including local government officials, community leaders, business owners, educators, religious leaders, and residents, have the potential to transform Lakewood into a more prosperous, inclusive, and harmonious community that benefits all its inhabitants.