During the Depression years, Masaryktown remained a small community with only 36 families in 1941. Little changed during the years of economic hardship, but the town experienced a comeback during the 1950s and 1960s. Retirees and chicken farming brought prosperity to the small community. In fact, more than half of the city's population was made up of retirees. While most of the city's residents were not of Czech descent, it is estimated that about 60 percent are.
During the boom period, the Czechoslovak population in New York City grew by over tenfold. Masaryktown was named in honor of the first president of Czechoslovakia, Thomas Garrigue Masaryk. Masaryk was an important leader of the Czechoslovak resistance during World War I. He was also married to a Brooklyn girl and the Hernando Plantation Company bought land from the settlers.
Many of the settlers in the area arrived in the mid-1925. These early settlers included Joseph Joscak, Clement Ihrisky, Peter Ruzak, H. Getting, and John and Anna Cimbora. Cimboras built the first house and John Kozak later built the Masaryk Hotel. The Masaryk Hotel remained a central social center for many years. The city's first grocery store was opened by Joseph Kacir. The grocery store was later sold to Charles Blaha. In addition, a grammar school was built on land donated by the Hernando Plantation Company.