In 1810 trade and shipping with the colonial countries declined sharply due to the occupation of the Netherlands by the Empire of France (Napoleon). The war between England and France blocked trade routes, causing the Dutch Republic to lose many colonies. The economic stagnation caused a lot of poverty among the population and many Amsterdammers left the city. After the expulsion of the French by the Russians and English in 1813, the Kingdom of the Netherlands was proclaimed, whereby King William I wanted to make Amsterdam a trading city again. Contacts with the colonies were resumed and industrialization (from 1860) made the city grow enormously. Many farm workers moved to the city, so that Amsterdam had 520,000 inhabitants around 1900. The living conditions for the underclass were very bad. The middle and upper classes raised money, which eventually led to the establishment of housing cooperatives to improve the living conditions for the poor. At the end of the 19th century the housing cooperatives built neighborhoods such as the Pijp, the Dapperbuurt and the Kinkerbuurt for the underclass.
Industrialization led to the development of large steam-powered machines such as steam trains and ships, which has had a significant impact on the current shape of Amsterdam. For example, in 1898 the Central Station was built in the IJ, making the ports of Damrak, Rokin and the East and West quays less accessible for the large steam ships. As a solution, the Oostelijke Handelskade was constructed at the end of the 19th century. This soon turned out to be insufficient and the KNSM Island and Java Island were developed to handle the influx of goods from the colonies.