Jobs related to the canal had dropped dramatically, while those associated with the railroads had increased substantially. At this time there were 151 households living in 148 dwellings. The borough's population had increased to 742. By 1875, the borough contained four churches, three schools and one select school, and two lodges. The 1880 census showed 155 families living in 146 dwellings in Dauphin. In the early twentieth century, several "summer" houses were constructed on the edge of Second Mountain, south of Stony Creek. Middle-class residents of Harrisburg built these houses as second homes to supplement their primary townhouses. These houses are collectively called "Hillside" and have since become year-round homes. The borough, situated along the Susquehanna River, has always been associated with transportation. Original Native American trails would have followed waterways such as the river and Stony Creek. Development of the canal system of transporting goods during the early nineteenth century gave way to the rise of the railroads, which lasted for much of the twentieth. U.S. Route 22 became a major highway through Pennsylvania during the mid-twentieth century, parts of which were actually constructed within the footprint of the former Pennsylvania Canal. Dauphin thus developed as an early transportation hub, but in more recent decades has been bypassed by more significant routes of transport, such as the Eisenhower Interstate Highway System. In the last forty or so years, Dauphin Borough has been a bedroom community of Harrisburg, the Pennsylvania state capital. Many of its civic centers had gone into steep decline, industry migrated elsewhere, taverns and hotels closed, as did schools and churches. The railroad, which declined during the late twentieth century, has been reduced to two tracks paralleling the river, with no stops or stations in Dauphin. One of the reasons for the decline was that as traffic on U.S. Rte. 22 increased, the borough became less desirable as a place in which to reside. By the 1980s, traffic on Rte. 22 was so heavy that the road essentially cut the borough in half. Residents often had such a difficult time traveling across the borough that they waited until after morning and evening rush hours. On weekends when the Pennsylvania State University in State College, some upstate, held football games, Rte. 22 through the borough was impassable. In older times, Dauphin was the hub of a collection of small village centers in Middle Paxton Township of Dauphin County.