Kensington is a primarily low income and working class area, and it experienced increasing poverty after the loss of its industries in the 1960s during deindustrialization.

Disinvestment and general neglect has led to high abandonment in some parts of the neighborhood, catalyzing several grassroots actions from its residents.

[4] As with all neighborhoods in the city, the lack of any official designation means the boundaries of the area vary between sources over time and are disputed among locals.

[13] Recently, large developments have initiated north of Lehigh Avenue, in what is typically considered the heart of Kensington.

[14] As with all neighborhoods in the city, the lack of any official designation means the boundaries of the area vary between sources over time.

Using proceeds from the sale of the Hope Farm estate (present day Port Richmond), which included three enslaved people named Abraham, Hannibal, and Phillis,[19] Palmer purchased what was called the Fairman Estate, located along the Delaware River in the Northern Liberties Township (area just north of the City of Philadelphia on the Delaware River).

[20] Palmer laid out his town and sold parcels to many of the shipwrights and shipbuilders who were outgrowing their riverfront lots in present-day Old City, Southwark, and Society Hill areas.

In the early 19th century, Kensington transitioned to iron and steel manufacturing[22] and became home to a variety of factories, potteries, and machine works.

[21] Kensington is also historically known for its large working class Irish Catholic community and was the site of the Philadelphia nativist riots in the 19th century.

"[24][25][26] Deindustrialization eventually took hold in the neighborhood in the 1950s, leading to a significant population loss, high unemployment, economic decline, and abandoned homes.

[44][failed verification] The majority of its population is Hispanic or Latino (59.9%), consisting primarily of Puerto Rican and Dominican Americans.

Additionally, 65.8%, almost two thirds, of Kensington residents can be described financially as "poor or struggling" (defined by a Ratio of Income in 2020 to Poverty Level of under 2.00).

[44] Kensington's high percentage of low income renters puts its residents at risk of displacement from gentrification.

Looking to be close to Center City by both car and transit, young white collar workers have been moving to cheaper neighborhoods around downtown.

Fishtown, formerly a small subsection of Kensington, has transformed with a new affluent population, as well as greater investments from real estate developers.

[47] The closure, which happened without consulting with residents and lacked advance notice,[48] was ostensibly to repair elevators that had been damaged by human waste and trash and concerns about safety for workers.

[50] The proposal to open a supervised injection site in Kensington has faced backlash from residents, despite the area's prevalent public drug use.

[8] Over time black and Hispanic street dealers took over larger portions of the drug trade, especially heroin, fentanyl, and crack cocaine.

In recent years, Kensington has experienced increasing social issues primarily related to drug abuse.

[18] People suffering from addiction and/or experiencing homelessness concentrate around the Somerset and Allegheny train stations, in nearby parks, and on residential streets, angering long-term residents.

[65] The neighborhood gained national attention, notoriety, and extensive press coverage of its thriving narcotics drug scene, often described as the largest on the U.S. East Coast.

[66][67] The intersection of Kensington Avenue and Somerset Street was listed as the city's top recreational drug corner in a September 2012 article by Philadelphia Weekly reporter Steve Volk.

An August 2011 article on the area in The Daily Beast in January 2019 was titled, "Philadelphia's Kensington Avenue: Heroin, Prostitution, and No Police".