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Beginning in the 1840s, large numbers of German immigrants entering the United States provided a constant population influx for Little Germany. In the 1850s alone, 800,000 Germans passed through New York. By 1855 New York had the third largest German population of any city in the world, outranked only by Berlin and Vienna. The German immigrants differed from others in that they usually were educated and had marketable skills in crafts. More than half of the era’s bakers and cabinet makers were Germans or of German origin, and many Germans also worked in the construction business. Educated Germans such as Joseph Wedemeyer, Oswald Ottendorfer and Friedrich Sorge were important players in the creation and growth of trade unions, and many Germans and their Vereine (German-American clubs) were also often politically active. Oswald Ottendorfer who was the owner-editor of the Staats-Zeitung, New York’s largest German-language newspaper, was among the wealthiest and most socially prominent German-Americans in the city. He also became the undisputed leader of the newly important German Democracy, which would help Fernando Wood recapture the mayor’s office in 1861 and elect Godfrey Gunther as mayor in 1863.

At the time, Germans tended to cluster more than other immigrants, such as the Irish, and in fact those from particular German states preferred to live together. This choice of living in wards with those from the same region was perhaps the most distinct and overlooked feature of Kleindeutschland. For instance the Prussians, who by 1880 accounted for nearly one-third of the city’s German-born population, were most heavily concentrated in the city’s Tenth Ward. Germans from Hessen-Nassau tended to live in the Thirteenth Ward in the 1860s and in the ensuing decades moved northward to the borders of the Eleventh and Seventeenth Wards. Germans from Baden by the 1880s tended to favor living in the Thirteenth Ward, and Württembergers began by the 1860s to migrate northward into the Seventeenth Ward. The Bavarians (including Palatines from the Palatinate region of western Germany on the Rhine River, which was subject to the King of Bavaria), the largest group of German immigrants in the city by 1860, were distributed evenly in each German ward except the Prussian Tenth. Aside from the small group of Hanoverians, who had a strong sense of self-segregation forming their own “Little Hanover” in the Thirteenth Ward, the Bavarians displayed the strongest regional bias, mainly toward Prussians: at all times the most distinctive characteristic of their settlement pattern remained that they would be found wherever the Prussians were fewest.

In 1845, Little Germany was already the largest German-American neighborhood in New York; by 1855, its German population had more than quadrupled, displacing the American-born workers who had first moved into the neighborhood’s new housing, and at the beginning of the 20th century, it was home to almost 50,000 people. From a core in the riverside 11th Ward, it expanded to encompass most of the 10th, 13th, and 17th Wards, the same area that later became known as the Jewish Lower East Side. Tompkins Square Park, in what is now known as Alphabet City, was an important public space that the Germans called the Weisse Garten. There were beer gardens, sport clubs, libraries, choirs, shooting clubs, German theatres, German schools, German churches, and German synagogues. A large number of factories and small workshops operated in the neighborhood, initially in the interiors of blocks, reached by alleyways. There were major commercial streets including department stores. Stanley Nadel quotes a description of the neighborhood at its peak in the 1870s:

At the beginning of the ’70s, after a decade of continuously rising immigration, Kleindeutschland was in its fullest bloom. Kleindeutschland, called Dutchtown by the Irish, consisted of 400 blocks formed by some six avenues and nearly forty streets. Tompkins Square formed pretty much the center. Avenue B, occasionally called the German Broadway, was the commercial artery. Each basement was a workshop, every first floor was a store, and the partially roofed sidewalks were markets for goods of all sorts. Avenue A was the street for beer halls, oyster saloons and groceries. The Bowery was the western border (anything further west was totally foreign), but it was also the amusement and loafing district. There all the artistic treats, from classical drama to puppet comedies, were available.