Access = Prosperity

From the Star Ledger:

What causes income inequality among similar N.J. towns?

Railroads have historically been instrumental to human development by connecting economic centers and providing people with enhanced access to opportunities. New Jersey is no exception. In the 1830s, numerous railroad companies jockeyed for access to Jersey City in order to capitalize on Manhattan’s economic boom.

Shortly thereafter, new train lines were built, and certain towns in the state gained access to Jersey City and Manhattan (see Benjamin Bernhart’s “Historic Journeys by Rail: Central Railroad of New Jersey Stations, Structures & Marine Equipment” for more information).

These towns, in turn, would explosively transition from agriculturally-based economies to diverse and white-collar hubs.

Unfortunately, railroad access to Manhattan was not granted equitably, and economic inequality between towns and counties expanded as time wore on. We see this inequality most clearly when comparing the success of towns with early, direct access to train lines to towns without such access.

Consider the towns of Plainfield and Westfield in Union County, where income inequality is abundantly clear. Westfield households earn 2.69 times more and the average property is worth $429,100 more than their neighbors in Plainfield. Until the Central Railroad of New Jersey built a direct line between Westfield and Jersey City in 1901, Westfield and Plainfield shared a similar history.

Both towns were largely dependent on agriculture for growth and sustenance. But once the connection from Jersey City to Manhattan was established, Westfield transitioned from a blue-collar to white-collar town and naturally experienced economic prosperity. On the other hand, Plainfield did not gain access to the Jersey City line until 1910 – for reasons which are still unclear.

Today, Westfield has an express line to/from Newark Penn station during rush hour that skips the seven other towns between Westfield and Manhattan. This has attracted more wealthy families to the area, led to a better school system and public services, and, overall, perpetuated the vast inequality between the neighboring towns.

We see a similar trend when comparing the fortunes of Garfield with that of Ridgewood over in Bergen County. The town’s Chamber of Commerce acknowledges that failed attempts to build a rail line in the 1870s – and a lack of early train access – were inhibitors to the town’s development.

Meanwhile, Ridgewood, which according to the 2010 U.S. Census Bureau today has a median household income of $147,823 compared to Garfield’s $45,469, got rail access to NYC as early as 1848. Ridgewood and similarly wealthy Bergen County towns point to the railroad as a critical turning point in the town’s success, as it attracted wealthy businessmen to a countryside lifestyle with work access.

This entry was posted in Demographics, Economics, New Jersey Real Estate. Bookmark the permalink.

48 Responses to Access = Prosperity

  1. grim says:

    Good piece, however the Plainfield/Westfield example is a poor choice. Access is a factor, but not the only factor, and certainly not sufficient to keep a city from sliding into poverty.

  2. grim says:

    I think Kurtz found the upper bound of NJ real estate:

    Unsellable? New Jersey’s Most Expensive Home Dropping To $45 Million After Seven Years On The Market

    In 2010, real estate investor Richard Kurtz invited Forbes for an exclusive tour of his Alpine, N.J. home. He had just listed the 30,000 square-foot mega-mansion for $68 million. It was the most expensive listing in the state and among the most expensive in America. Seven years later the only the price has changed.

    The Stone Mansion, as the house is known, will relist with a new agent in the next week or two at $45 million.

    Officially Kurtz has taken the home on and off the market several times, but since no one has never lived there it has never been not for sale. (Kurtz resides nearby.) The price has been reduced at least five times.

    The latest decline is an 8% cut from the most recent listed price of $48.88 million and over 30% below the original ask. “Now it is ready to be sold,” said Kurtz when Forbes returned to Alpine last month.

    Since mid-2015 the suburban markets surrounding New York City, such as Alpine, have experienced a boom in sales, says Jonathan Miller, CEO of Miller Samuel a real estate appraisal company based in Manhattan. However, most of that activity has been concentrated on entry and mid-priced homes. Higher end buyers are staying in the city. “In the suburbs that ring New York City, there is a market for sales in the $45 million price range,” says Miller. “It’s just not a wide and deep market.”

  3. grim says:

    Going to make a prediction, I’m in the predicting mood this morning.

    The Borsch Belt and Catskills will be hot again.

    Hipsters with kids and trailers and Pabst.

    Go Long.

  4. chicagofinance says:

    11 years 8 months after you called the top of the NJ market?

  5. grim says:

    I had a premonition, at first I thought it was 1979, but the mustaches were far worse, and men were wearing belly shirts.

  6. JJ fanboy says:

    I am always long


    Grim says

    Go long

  7. Grim says:

    Like Burt Reynolds.

  8. The Great Pumpkin says:

    You are going to tell me wealth building is synonymous with smarts? Then explain Trump. Case book study on how a dumb idiot can build wealth with pure luck. This guy is a billionaire folks!!

    Fabius Maximus says:
    May 26, 2017 at 10:31 pm
    This must be true greatness?

    https://jalopnik.com/the-very-bad-germans-export-a-ton-of-american-built-c-1795588409

  9. The Great Pumpkin says:

    Unrestricted capitalism builds that inequality. You give almost all the spoils to the top, what do you expect the real estate picture to look like? How much of that sf money should be spread out, but instead it’s all hyper concentrated.

  10. Grab them by the puzzy says:

    @gregmiller

    Former Dep CIA director McLaughlin on Kushner:

    if an agency officer had done anything like this we’d be trying them for espionage

  11. Now Spanky, be reasonable says:

    Plainfield and Westfield are on the same line. If Plainfield had the same number of riders going directly to Manhattan as Westfield, maybe they would get a direct line too. The riots in Plainfield back in 1967 are what doomed that town. It may have a comeback, I am always surprised by the amount of wealth that lives in that town.

  12. Now Spanky, be reasonable says:

    I know, I know … I shouldn’t feed the troll, but I couldn’t let this statement just go by: “Picking these poor kids up and throwing them in a classroom full of rich kids is not the answer.” So, no private school should offer need based financial aid? No free rides to Lawrenceville because you are poor? Nah, let’s just leave them in violent, failing schools. So what if an 8 year old girl is afraid to go to the bathroom because she might get attacked, who cares if all she wants is the chance to learn in a safe environment. Let her rot in her pit of a school because the problems are too entrenched to be fixed in her lifetime. Because, you know, feelings over reason.

  13. Grab them by the puzzy says:

    @danpfeiffer

    This is important.
    Remember when Kushner’s attorney said he left the Russian contacts off his form by accident?
    Yeah that was clearly a lie

  14. Blue Ribbon Teacher says:

    This still doesn’t mean I support school choice. Picking these poor kids up and throwing them in a classroom full of rich kids is not the answer. It will just be further punishment and a reminder of how bad their lives really are. Going to have a negative impact on their self esteem and outlook of themselves.

    Actually, it is and I’ve seen it first hand as a teacher. Once a kid enters the classroom from the inner city, he/she is allowed to work hard and study without worrying about being abused by their peers for “not keeping it real”.

  15. Phoenix says:

    BRT,
    I do not work for the school system but your observation is exactly what I would expect.
    Remember Eddie Murphy in Trading Places- the Duke and Dukes?

  16. Grab them by the puzzy says:

    @lsarsour

    If anyone knows who the victims of the #Portland stabbing are and are connected to their families, let me know.
    I wanna help raise funds.

  17. Grab them by the puzzy says:

    @evan_rosenfeld

    2 good samaritans killed in Oregon train stabbing after trying to intervene, stop suspect from bullying Muslim women

  18. The Great Pumpkin says:

    You summed up my argument. That’s exactly what I don’t want infecting my school district, this “keeping it real” mentality. Enough flood the system, and they take down the ship. That’s what most people don’t get. Their schools are fine, it’s this got damn “keep it real” mentality that fails them. How is a teacher supposed to teach somebody that wants to keep it real.

    So I ask again. If Passaic is considered a failing school and not providing opportunity, how did that girl get accepted to every Ivy League school. That’s some failing school not providing opportunity.

    “Actually, it is and I’ve seen it first hand as a teacher. Once a kid enters the classroom from the inner city, he/she is allowed to work hard and study without worrying about being abused by their peers for “not keeping it real”.”

  19. Yo! says:

    NJ house market won’t return to 2006 peak until 2020 at earliest. But condo market setting new highs. Posters here, except for me, missed the condo price rebound.

  20. The Great Pumpkin says:

    Yet, everyone yells and screams they are failing schools because not every student graduates or goes to college. Blame the students and not the system, when students who put in their time and effort under that same system go onto Ivy League schools. You have to question how that student was successful under that system and these others were not. Stop blaming the schools and teachers. Start blaming parents and students who don’t give a damn about learning.

  21. The Great Pumpkin says:

    The opportunity is there, but they refuse to take it. They ruin their own schools and neighborhoods. Anyone who doesn’t see this is blind.

    Go look at those brand new houses for humanity projects. After two years, they have destroyed all value with utter disrespect for their gift. They have to change their mentality before anyone can help them.

  22. The Great Pumpkin says:

    Great call!

    “NJ house market won’t return to 2006 peak until 2020 at earliest. But condo market setting new highs. Posters here, except for me, missed the condo price rebound.”

  23. Blue Ribbon Teacher says:


    So I ask again. If Passaic is considered a failing school and not providing opportunity, how did that girl get accepted to every Ivy League school. That’s some failing school not providing opportunity.

    Most kids who get accepted to these Ivies from these districts don’t have resumes as impressive as students from higher performing districts. They have lower GPAs, not as many APs, and less extracurriculars. However, their major accomplishment is getting through the sh1tstorm that is their district and coming out on top. Why would you want to prevent someone like this from attending “your” district.

  24. Grab them by the puzzy says:

    @HillaryClinton

    Heartbreaking.
    No one should have to endure this racist abuse.
    No one should have to give their life to stop it.

  25. The Original NJ ExPat says:

    grim – I had an MBA prof in the mid 80’s who told our small class (all engineers at Singer-Kearfott) something I’ll never forget, circa 1986. He was a business guy/teacher not a pure academic, he did a lot of consulting. He told us: “I can’t tell you what I know or how I know, but don’t ever buy any RE in upstate NY.” My guess is in the early days of US industrialization some really nasty sh!t was dumped up there…often. If you think about it, no old money families seem to build grand residences there. I think there is a very quiet oral tradition being passed down.

    Going to make a prediction, I’m in the predicting mood this morning.

    The Borsch Belt and Catskills will be hot again.

    Hipsters with kids and trailers and Pabst.

    Go Long.

  26. The Original NJ ExPat says:

    Seth Rich?

    @HillaryClinton

    Heartbreaking.
    No one should have to endure this racist abuse.
    No one should have to give their life to stop it.

  27. The Original NJ ExPat says:

    Does anybody here know about Metco? It works like this. If you are poor and would like to attend school in a highly rated, upscale, best-of-the-best-of-Bergen-County-like community, you can in Boston. Metco kids are bussed free of charge to go to these schools in towns where their family could never afford to live. The only requirement is you can’t be white.

    http://www.metcoinc.org/

  28. The Original NJ ExPat says:

    M.E.T.C.O. Metropolitan Council for Educational Opportunity is a state-funded educational program designed to eliminate racial imbalance through the busing of children from Boston and Springfield to public systems in surrounding suburban metropolitan communities.

    The METCO Program is open to all children of African American, Latino, Asian and Native American descent who reside in the City of Boston and volunteer to participate.

    http://www.newton.k12.ma.us/metco

  29. The Original NJ ExPat says:

    In order to qualify for the program, a student must be a resident of Boston or Springfield and be non-white. Eligibility does not take into account a student’s record (including academics and behavior), English language proficiency, socioeconomic status, attendance record or immigration status.

    https://en.wikipedia.org/wiki/METCO

  30. Juice Box says:

    re: Frick property and Kurtz.

    Ah Alpine and Closter Dock road and the stories it could tell. I used to be the lawn mower man, the teenager who cut the grass back in the late 1980s and I used to whistle along with my crazy boss at all of the moms and daughters who would be jogging around the neighborhood during the workday. We were young, tan, fit and invincible. 12 hour work days and long party nights during those crazy summers.

    Wasn’t the original spec house on 5 acres? It looks smaller now, they have subdivided all of the land, 60 acres and are carving up whats left. Kurtz wants $45 million for the a few acres and a massive 30,000 sq ft house, too bad there are still sanctions on those the Russian Oligarchs. I believe one of them is still maybe sitting on an Alpine property that cannot be sold do to the sanctions.

    Here is the original NY Times article on the Frick property, you would have never know who lived off that road 30 years ago, it was wooded and everything set back from the road.

    http://www.nytimes.com/2007/07/22/realestate/22frick.html

  31. Juice Box says:

    re: Catskills

    My Aunt still has a place up there near East Durham. She is the last of the old school Irish immigrants who still go up there. It is a sad place to me, it’s heyday ended long ago do the Jet age. Why go there when you can fly to Ireland in the Summer for cheap?

    A bit of history..
    http://www.hvmag.com/Hudson-Valley-Magazine/March-2016/The-History-of-the-Irish-Alps-in-the-Catskills/

  32. 3b says:

    Juice: there are still a few of the places left that have been renovated. It’s taken on a bit of a renaissance in the summer. Big Irish music festivals in the summer. In fact there is one this weekend that we would have gone too but have a party tomorrow. It has been sold out for months. But it’s hey day is over as a resort town. My Dads friend owned one of the better places up there sold it for 145k with 70 acres back in the late 90s.

  33. Juice Box says:

    3b my Bronx boy, I spend many a summer week there growing up, Dads in the pub all day kids and moms at the pool. I have been for a festival or two over the years, no longer my thing. I will be up near for a wedding this summer. The reception however is in Jersey in Vernon, at that fancy resort.

  34. The Original NJ ExPat says:

    I’m not alleging any conspiracy, but could you manufacture a better story than 2 good Samaritans dying while intervening in an anti-Muslim attack by a guy named Christian? In Portland, no less? And Christian is a known white supremacist?

    http://www.portlandmercury.com/blogtown/2017/05/27/19041594/suspect-in-portland-hate-crime-murders-is-a-known-white-supremacist

  35. The Original NJ ExPat says:

    Talking points:

    1. Muslims good
    2. Christians bad
    3. Vote Dem next time you stupid, stupid, stupid people who caused all this.

  36. The Original NJ ExPat says:

    My car tried to set itself on fire yesterday (2002 Mazda Tribute ES). I was at a tire place negotiating new tires and an alignment, but the alignment rig was down and wouldn’t be repaired until next week. I spent about 10 minutes inside the tire place. When I got back in my car I smelled something bad/burning, assumed it was from the vehicle parked next to me. The car cranked, dash lights went on, but it didn’t start. I tried it twice. Then I realized the burning was coming from inside my passenger compartment! I first noticed smoke on the passenger side, but when I got out and opened both doors, it seemed to be coming from the driver’s side, under the dash, burning away with the car off and the key out probably as it had been while I was inside for 10 minutes. I ran back inside the tire center and borrowed a wrench and disconnected the battery which caused the impending doom to stop, though I waited a little while to make sure there was no flame. I can’t imagine what is unfused in the passenger compartment and still hot when the car is off? I’m guessing maybe the PCM? I’ll get it towed to the dealer (arghh!) on Tuesday as maybe it is related to some recall work done there about 6 months ago (cars burning themselves up, but supposedly starting with the ABS module under the hood). We’ve owned the car since new in 2002 and never modified the car.

  37. grim says:

    Any appreciable damage to the wiring harnesses under the dash means you are probably going to end up scrapping the car.

    Arguable whether or not you should have just let it go up in flames.

  38. The Original NJ ExPat says:

    I tend to agree. The wildcard is if the dealer made mistakes. There are various modules under the hood that were installed to supposedly keep the car from burning up. No matter what, we got 15 years out of the car.

    Any appreciable damage to the wiring harnesses under the dash means you are probably going to end up scrapping the car.

    Arguable whether or not you should have just let it go up in flames.

  39. Juice Box says:

    Won’t start is the key here, you might be getting a new car. I would not be driving it if I knew engine power might cut out at any moment do to the wiring harness burning up.

  40. grim says:

    The labor associated with any kind of under-dash repair tends to be astronomical if the dash needs to be removed. Just to diagnose the extent of the damage might cost more than the whole car is worth.

  41. Steamy says:

    That’s crazy juice. Some times, it’s as simple as the insulation in a positive wire cracking off due to age and touching the chassis. Hopefully, it’s as simple as a wire headed to the tail lights. But I doubt it. Good luck.

  42. 3b says:

    Juice: lots of great memories from up there. Simpler times. You might want to check the music scene out if not there than lots of other places. There is an amazing amount of talent out there today. People from all walks of life deeply involved in the music scene today with absolutely no irish connection. Got to come home Juice!!

  43. Grab them by the puzzy says:

    @SenSanders
    This is what oligarchy and austerity are about.
    The public sector is being starved, while billionaires get tax cuts.

    @washingtonpost
    With state budget in crisis,
    many Oklahoma schools hold classes four days a week

  44. STEAMturd questioning the gender of Hillary's Cankle fluid. says:

    Hey Moana,

    I doubt you read anything but twitter based on your parroting ways, but you might want to read one your heroes latest in the Rolling Stone.

    http://tinyurl.com/a-dem-who-gets-it-how-rare

    It’s almost as if he’s been reading my posts. I have little doubt that the Dems in denial will start to admit their party’s shortcomings in the coming years and what many of our centrists have been saying here will finally enter their herd’s playbook. The only question is if it will be too late.

  45. STEAMturd questioning the gender of Hillary's Cankle fluid. says:

    Hey Moana. I think he’s talking to you.

    “They’re continuing, if not worsening, last year’s mistake of running almost exclusively on Trump/Republican negatives. The Correct the Record types who police the Internet on the party’s behalf are relentless on that score, seeming to spend most of their time denouncing people for their wrong opinions or party disloyalty. They don’t seem to have anything to say to voters in flyover country, except to point out that they’re (at best) dupes for falling for Republican rhetoric.”

  46. Phoenix says:

    “It’s the economy, stupid” James Carville.

    Most of the people I know that voted for Trump are interested in one thing more than the others- JOBS. They also wanted the wall figuring if illegals left there would be more JOBS. To many of them, JOBS were even more important than healthcare as they felt if they had JOBS they could afford/get healthcare through their newly created JOBS.

    All of the rest of the items in the list below come secondary to JOBS. Carville was right about this. It’s not Democrat or Republican like the article suggests. It was which candidate would create JOBS. Trump convinced voters he would create JOBS. Problem is now it’s time to put up or shut up. Are we going to create jobs-and better yet, what kind of jobs? Minimum wage or high paying?

    Time will tell.

    From the article:

    “The standard-bearer for unelectable candidates who were elected anyway will likely always be Donald Trump. Trump was caught admitting to sexual assault on tape and openly insulted almost every conceivable demographic, from Mexicans to menstruating women to POWs to the disabled; he even pulled out a half-baked open-mic-night version of a Chinese accent. And still won.”

  47. The Original NJ ExPat says:

    We had the car at the dealer for electrical recalls(fires starting in other cars) just before Thanksgiving, it took them about 4 days, no charge, gave us a loaner car. During the Winter I thought I might have burned out the wiper motor when the wipers froze in mid sweep due to ice near the base of the wipers (the wipers stopped in mid sweep while I was clearing ice and snow from the car). At that point I found that there were additional “modules” (black boxes) under the hood and the under-hood fuse box was closed up with a tie wrap. The wiper problem resolved itself and I hadn’t thought of it since then. Here’s the funny thing. The check engine light was turning on for an evap gas tank code. This had been an occasional problem for years, usually coincident with filling the tank, but this time the CEL wouldn’t stay turned off. In the past just double-checking the gas cap did the trick. About a week ago, I suspected that the gas cap needed to be replaced, but since the OEM cap was about 28 bucks shipped, I decided to test my theory first. I put a plastic bag under the gas cap, reset the CEL with my iPad app and the CEL stayed off. OK, now I can part with 28 bucks. The new OEM gas cap from tascaparts.com showed up Saturday morning and put it on the car. Less than 4 hours later the car almost burned up.

  48. Njescapee says:

    Juice

    My brother owned Joseph’s Farm up in East Durham. It was on about 70 acres had a little stone chapel and stations Of the cross mounted to trees. He sold it after someone set fire to the barn that was sometime in the mid nineties

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