Indiana, often recognized for its heartland values and rich manufacturing tradition, is also home to communities facing significant economic hardship. The town most recently identified as the poorest in the Hoosier State is Austin, located in southeastern Indiana. Austin’s economic struggles have been highlighted by recent surveys and census data, revealing stark contrasts with state averages and underscoring the realities faced by many of its residents.
Why Austin?
A widely cited analysis using U.S. Census Bureau data and published by 24/7 Wall St. named Austin as Indiana’s poorest town in 2025. This ranking was based on several key socioeconomic indicators among towns with populations between 1,000 and 25,000 inhabitants:
Median Household Income: Austin’s median household income stands at just $26,599, less than half Indiana’s average of $67,173. This low income signals widespread underemployment and a challenging local job market.
Poverty Rate: The poverty rate in Austin is a staggering 51.3%, a figure much higher than the state’s overall poverty rate of 12.3%. This means that more than half of Austin’s residents live below the poverty line, a level of hardship unseen elsewhere in the state.
Educational Attainment: Only 2.3% of Austin residents hold at least a bachelor’s degree, compared to 27.8% statewide. Limited access to higher education often results in fewer job prospects and sustains cycles of poverty.
Home Values: The median home value in Austin is $74,200, well below Indiana’s average of $158,500. Lower property values are both a cause and consequence of economic decline, making it harder for residents to accumulate wealth or move out of poverty.
SNAP Benefits: Austin residents rely heavily on federal assistance, with 27.4% of households receiving Supplemental Nutrition Assistance Program (SNAP) benefits versus the statewide average of just 9%.
The Human Dimension
Austin is a town of about 3,900 residents, many of whom are caught in a cycle of economic struggle. High poverty rates often translate into limited opportunities for youth, challenges in accessing quality healthcare, and infrastructure in need of investment. The reliance on social services, like food assistance, is a clear indicator of local need and the absence of stable, well-paying jobs.
Broader Context
While college towns like Bloomington or West Lafayette also show up in data due to large student populations (which can skew poverty statistics), Austin’s status is not driven by academics or temporary demographics. Instead, it reflects long-term issues such as industrial decline, lack of economic diversification, and limited access to education and healthcare.
Looking for Hope
Despite these daunting statistics, the people of Austin remain resilient. Community organizations, local churches, and civic leaders continually work toward improving conditions, offering services from food banks to educational support. The hope is that, with targeted investment and a focus on economic development, towns like Austin can eventually shed the “poorest” label and foster a more prosperous future.
Austin, Indiana, stands out as the state’s poorest town in 2025, marked by extremely low median income, high poverty rates, low educational attainment, and a heavy reliance on government assistance. Its story is a reminder of the need for sustained attention and support for America’s struggling small towns.
Sources
[1] https://my1053wjlt.com/this-is-the-poorest-town-in-indiana/
[2] https://247wallst.com/income/2025/01/17/the-poorest-town-in-every-state-in-america/
[3] https://indianaeconomicdigest.net/Content/Default/Major-Indiana-News/Article/What-s-Indiana-s-poorest-city-Hint-It-s-not-Bloomington-/-3/5308/115473
[4] https://www.roadsnacks.net/poorest-places-in-indiana/
[5] https://www.usnews.com/news/health-news/slideshows/poorest-cities-in-the-us
