Atlantic City Exodus Phenomenon

Posted on January 3rd, 2009 by Jen

Atlantic City has definitely classed up a little bit over the last couple of months. With Ace performers frequenting the city for New Year’s, it feels like the good times are back. But the exodus phenomenon – decrease in population – is interesting, and a little bit of a concern. The city has lost the title of being the most populated municipality to Galloway and Egg Harbor townships, according to the census late this year. The prominent reasons are the recent casino-employee layoffs, which pushed too many people towards the mainland to seek employment. Subprime mortgages are also something to be blamed.

Atlantic city which is possibly the best located casino hub in the entire world after the Macau, saw a slight increase in its total number of housing units, which happens to exceed the closest township by about 5,000 units. But the exodus has left more vacant housing. Surveys show nearly 23 percent of Atlantic City’s housing units vacant and renters occupy more than 70 percent.

A population of 40,000 residents but 34 million annual visitors makes the ratio subject to speculation. The city’s decline in residents is not likely to rebound soon until there are some major changes in the economic condition. However, going by the facts, Atlantic city hasn’t been much of a growing community. The population peaked once in 1930’s and has been on a decline since then. The lower population density on the other hand is a peculiar trait of the island. The city is happy serving the visitors who never seem to slowdown. They drive in to enjoy the casinos and the boardwalk, exotic wineries and exciting beaches that surround the city. And this doesn’t sound anything like Las Vegas.

Another reason for the decline in population can be attributed to the slowdown in construction related work in the city. Many temporary construction workers who came from adjoining cities and states have now left since construction in many locations has stopped.

Some casinos have reported increasing profits in the last two months of 2008, quite a surprise to many. Official earnings reports have not been released yet, all eyes will be open in anticipation of that, but in the meantime, if the insider reports are to be beleived, that is good news for Atlantic City. Overall, it appears to be a time of confusion at best, and Atlantic City might just be one of the first places in the country to bounce back from recession.