Salem has been named the poorest town in New Jersey, reflecting a deep and persistent economic struggle that sets it apart from the rest of the state. According to a recent analysis by 24/7 Wall St., which examined towns with populations between 1,000 and 25,000, Salem stands out due to its exceptionally low median household income and high poverty rates. The typical household in Salem earns just $26,667 a year, a stark contrast to New Jersey’s overall median of $89,703.
The economic hardship in Salem is further highlighted by the high reliance on government assistance. Over 35% of households in Salem receive SNAP (food stamp) benefits, far surpassing the state average of 8.4%. The unemployment rate is also alarmingly high, hovering around 20%, which is the highest among comparable towns in the region. These figures underscore the limited job opportunities and the declining employment base that have plagued the community for years.
Salem’s housing market reflects its economic distress. The median home value in Salem is just $59,100, compared to the New Jersey average of $355,700, making it one of the least valuable real estate markets in the state. This low property value not only affects residents’ wealth but also limits the city’s ability to generate tax revenue for essential services.
The roots of Salem’s poverty are tied to the loss of industry and population decline over recent decades, leading to high vacancy rates and a shrinking tax base. As the county seat of the least populated and most rural county in New Jersey, Salem faces unique challenges, including a high percentage of residents without access to vehicles and lower educational attainment compared to the rest of the state.
In summary, Salem’s designation as New Jersey’s poorest town is the result of a combination of low incomes, high unemployment, dependence on public assistance, and a struggling housing market. These factors collectively paint a sobering picture of economic hardship that continues to challenge the community’s resilience and prospects for recovery.
SOURCES
[1] https://www.nj.com/news/2017/02/the_poorest_towns_in_every_nj_county.html
[2] https://247wallst.com/income/2024/05/08/towns-in-new-jersey-with-the-worst-poverty/
[3] https://nj1015.com/new-report-says-this-is-the-poorest-town-in-new-jersey/
[4] https://en.wikipedia.org/wiki/List_of_New_Jersey_locations_by_per_capita_income
[5] https://cityofsalemnj.gov/wp-content/uploads/2021/10/NJ-SRN-City-of-Salem-Final-Report-min.pdf
