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In the 1970s, outsourcing brought to an end the group's prosperity, as they saw their jobs shipped overseas to Taiwan and China along with manufacturing.The neighborhood lost its prominence amid urban decay.

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The neighborhood was named for Water Board Commissioner Herman Silver, who was instrumental in the creation of the Silver Lake Reservoir in the neighborhood, one of the water storage reservoirs established in the early 1900s.The Silver Lake Reservoir's water resources will be replaced by the Headworks Reservoir, an underground reservoir north of Griffith Park, slated for completion by December 2017.Also within the grounds of the reservoir are several popular recreational facilities: the Silver Lake Recreation Center, which includes an adjacent city park; the Silver Lake Walking Path, which circumnavigates the reservoirs (2.25 miles); and the Silver Lake Meadow, modeled after NYC's Central Park Sheep Meadow.In 2008 the city estimated that the population had increased to 32,890.The median age for residents was 35, about average for Los Angeles, but the percentages of residents aged 19 to 49 were among the county's highest. The breakdown was Latinos, 41.8%; whites, 34%; Asians and Asian Americans, 18%; blacks, 3.2%; and others, 3.1%.

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