Historically, Red Hook has been known as a shipping hub in New York City. The Graving Dock was especially influential site. From the 1850 to the mid 1900’s, the Graving Dock was essential in the expansion of the Erie Canal and the construction of the Erie Basin. The dock served as the key terminal between the Atlantic Ocean and the Erie Canal.

Graving Dock being used as a shipyard during World War II

These docks have also been used as shipyards during the World Wars. In World War II, the Navy hired 20,000 workers to build ships in the Graving Docks.

However, in 2004, IKEA bought the site for the Graving Dock and began converting the area into a superstore. The store opened in 2008 and has since been met with much controversy. Though the IKEA has brought a large amount of business activity to the deteriorating neighborhood, locals resent that the store replaced the historic Graving Dock. Furthermore, the traffic congestion has led to a reduction of property value and quality of life in the neighborhood. One innovation that the IKEA has brought to the neighborhood is the IKEA ferry, which transports people from lower Manhattan to Red Hook. However, this has also added to the congestion problems associated with the construction of the store.

Red Hook as a whole is actually in a very poor economic situation currently. The average salary for Red Hook residents is far below the average New York City resident. At only $15,686, the average income for Red Hook residents is bordering on poverty. Furthermore, there is a severe lack of home ownership in Red Hook. In the past 30 years only seven percent of the neighborhoods’ residents owned a home. Even worse, 8,000 of the 10,000 residents lived in the Red Hook Houses, a public housing project in Red Hook.

The recent natural disaster, Hurricane Sandy, has added to the economic hardships of the neighborhood.  Being one of the hardest

Red Hook’s Fairway during Hurricane Sandy

hit neighborhoods in the city, Red Hook experienced flooding, water damage, wind damage, power outages, and structural destruction. Though there were millions of dollars in damages, companies such as the Fairway supermarket have been able to recover. These institutions have marked a beacon for hope for many of Red Hook’s residents as the efforts still continue to repair Red Hook from the damages of the hurricane.

Another beacon of hope for Red Hook is its underlying economic potential. Scholars have recently noted, “With vacant land, empty warehouses, and a declining population, Red Hook is ripe for redevelopment.” (Otero-Pailos) This transformation, actually, has already begun to occur. Many small businesses, instead of changing the existing structures, are opening up shops in the abandoned old buildings of industry. This may be the beginning of the economic rejuvenation of Red Hook.