Laurel, a small town in western Sussex County, has been named the poorest town in Delaware according to recent analyses of U.S. Census Bureau data and various economic surveys. With a population of just under 4,000, Laurel faces significant economic challenges, but also demonstrates resilience and a commitment to revitalization.
Economic Realities
Laurel’s economic struggles are evident in several key statistics:
- Poverty Rate: Laurel has the highest poverty rate in Delaware, with 39.6% of its residents living below the poverty line. This is nearly double the rate of the next poorest city in the state.
- Median Household Income: The median household income in Laurel is $42,710, the lowest among Delaware towns with populations over 2,000.
- Housing: Nearly half of Laurel’s residents are renters, and affordable, quality housing has been a persistent issue.
These figures reflect a combination of low wages, limited job opportunities, and a longstanding decline in the local economy. Once a prosperous mill and commercial hub due to its strategic location along Broad Creek, Laurel has faced decades of economic decline as industries and businesses moved elsewhere.
Community Challenges
The economic difficulties have had wider impacts on Laurel’s community:
- Vacant Properties: High vacancy rates are common, as older residents pass away and families often do not retain inherited homes.
- Downtown Decline: The downtown area has lost many of its businesses, with supermarkets, coffee shops, and hardware stores relocating to strip malls outside of town.
- Infrastructure Needs: Town officials acknowledge that improvements in infrastructure, such as water and sewer lines, are essential to attract new businesses and residents.
Despite these challenges, there is a strong sense of community spirit. Local leaders and residents are actively working to turn things around, emphasizing the town’s historical character and community pride.
Revitalization Efforts
Laurel’s response to its economic challenges has been proactive and multifaceted:
- Affordable Housing Initiatives: The Laurel Redevelopment Corporation (LRC), a nonprofit formed in 1992, has been central to efforts to revitalize the town. The LRC has acquired and rehabilitated over 30 parcels along Broad Creek, replacing blighted buildings with parks, new homes, and commercial spaces.
- Public-Private Partnerships: Recent affordable housing projects have been made possible through partnerships with organizations like Nally Ventures and Sussex County Habitat for Humanity, leveraging federal, state, and county funding to build new homes and rehabilitate existing ones.
- Downtown Development: The “Ramble” project, a collaboration between the LRC, University of Delaware’s Sea Grant program, and other local groups, aims to transform the downtown area with new housing, a nature-based playground, and spaces for small businesses.
- Economic Development: Town leaders are working to attract new businesses by improving infrastructure and increasing the local housing stock. The arrival of new families in affordable homes is expected to create demand for shops and services, stimulating further economic growth.
Looking Forward
While Laurel’s designation as Delaware’s poorest town highlights serious socioeconomic issues, it does not define the community’s future. There is optimism among local leaders and residents that ongoing efforts will lead to meaningful change. The town’s strategy—focusing on affordable housing, downtown revitalization, and leveraging its historical and natural assets—may serve as a model for other small towns facing similar challenges.
“There’s a lot going on right now in Laurel with new homes, new businesses and a new park, so there’s some energy there and people are starting to get excited about the town again.”
— Ed Lewandowski, University of Delaware Sea Grant
Laurel’s journey reveals both the depth of rural poverty in parts of Delaware and the potential for renewal through community-driven action and strategic partnerships. The town’s story is one of hardship, but also of hope and determination to build a brighter future.
Sources:
- https://www.roadsnacks.net/poorest-places-in-delaware/
- https://www.delawarepublic.org/show/the-green/2024-06-07/laurel-tackles-its-affordable-housing-crisis-with-new-project
- https://www.wmdt.com/2023/01/town-of-laurel-rated-the-poorest-in-the-first-state/
- https://www.udel.edu/udaily/2025/april/laurel-delaware-sea-grant-affordable-housing-new-construction-jobs-economy/
- https://www.cbf.org/blogs/save-the-bay/2024/11/bay-connection-helps-small-delaware-town-afford-big-redevelopment-plans.html
