During the 1950s, as the popularity of the automobile increased, government officials approved the construction of a highway that effectively separated Middletown from the Connecticut River, which had long supported its development. Highway construction demolished historic neighborhoods, including many buildings from the 18th century. New suburban developments were built outside older neighborhoods, attracting the people with money to buy new. In the mid-20th century, Middletown and similar towns lost heavy industry and manufacturing jobs that moved offshore, resulting in a general decline in population. An alternate economy began to develop by the 1990s.