15 Indiana Cities You Should Never Buy Property In

This post may contain affiliate links.

Real estate is a game of roulette, one spin could leave you with a jackpot in your hand, another could wipe you out. It’s especially true in Indiana, where the housing market has a patchwork of opportunities and pitfalls. No matter if you are a first time buyer or someone simply hoping to expand their investment portfolio, knowing which cities to avoid is just as important as knowing which cities to build your flag in.

High crime rates, economic instability: these cities have a laundry list of reasons why it’s not a good idea to put down roots here. Today, we’ll jump into a conversational guide to the Hoosier cities where purchasing real estate could turn out to be a one way ticket to financial regret.

Gary

The Toughest Places To Live in America — Image Credit: WeaponIzingArchitecture/Wikimedia Commons

Gary was once a bustling hub, but it now has a shrinking population and a crime rate that will make even the most seasoned investors think twice about putting their hard earned money into the city. In fact, according to NeighborhoodScout, Gary has a crime index in the bottom 1 percent of the country, which means safety is a big problem for buyers to be concerned about.

Muncie

Photo Credit: David Wilson/Wikimedia Commons

On first glance, you might think Muncie is a vibrant college town because of its ties to Ball State University. But dig a little deeper and you find a city struggling with job opportunities in decline, and an ailing infrastructure. Do beware though if you’re looking at investing in rental properties here—a transient student population does not necessarily mean a steady income stream.

Anderson

Photo Credit: Publichall/Wikimedia Commons

Anderson once was an automotive powerhouse; it’s now a shadow of what it once was. The city’s economy has been struggling and unemployment rate high because of the collapse of manufacturing. Add that to a lagging housing market, and you’ve got a formula for immobile property values.

East Chicago

East Chicago isn’t in the glitz and glamour of Chicago, don’t let the name fool you. Rather, this city has huge environmental problems. The massive cleanup project at the USS Lead Superfund site has made much of East Chicago uninhabitable, keeping potential buyers away for years.

Kokomo

Photo Credit: Cameronloyd03/Wikimedia Commons

Kokomo occasionally gets good press for its affordability, but low property prices often come with a catch. Economic downturns have hit the city hard and many neighborhoods are neglected. Kokomo may not be your best bet for the long term if you’re looking for growth, as there’s not much consistency with that.

Elkhart

The recreational vehicle industry has put Elkhart’s economy on the map (dubbed the RV capital of the world). This may sound promising, but it also means the city relies heavily on one market. Elkhart’s housing market wobbles during economic downturns and so is a risky place to park your money.

Richmond

Photo Credit: Warren LeMay/Wikimedia Commons

Richmond has its financial struggles, and its historic charm isn’t quite enough to offset that. The downtown area of this city is sprinkled with empty storefronts and its economic recovery has been glacial, or nonexistent. Before you buy here, think if the nostalgia is worth the financial risk.

Hammond

When it comes to a full array of opportunities, Hammond is close to Chicago but a world apart, as it is blighted with high crime rates and a reputation for urban decay. There are too many abandoned properties, or properties in a state of disrepair, leaving you to deal with more headaches than rewards should you decide to invest.

Terre Haute

Terre Haute isn’t bereft of challenges; it’s home to Indiana State University. The education and correctional facilities constitute the economy heavily, and there is little space for diversification. Don’t count on a thriving rental market—this city has a hard time attracting long term residents.

South Bend

Photo Credit: Paul Sableman/Wikimedia Commons

Notre Dame may be the reason people know South Bend, but that doesn’t make it a done deal for property investment. There are economic challenges and slow property values in many areas outside of the university’s bubble. Not even the most die hard Fighting Irish fans would want to pay full price here.

Marion

Photo Credit: MIssvain/Wikimedia Commons

In its manufacturing heyday, Marion saw better days. Today, the city is beset by high unemployment and a decreasing population. These are all factors that make the real estate market here more like a gamble than a good investment.

Michigan City

Photo Credit: Chris Light/Wikimedia Commons

Michigan City is just another example of beauty masking economic hardship. Tourism offers a seasonal boost, but the year round economy can’t muster enough to avoid limited housing demand and declining property values.

Lafayette

College Towns You Might Wish You’d Skipped — Image Credit: Huw Williams/Wikimedia commons

Lafayette might receive a youthful vibe from Purdue University, but its housing market is not youthful. Long term property ownership is tricky in the city, as it’s such a student rental city. Turnover of properties is frequent and they demand constant maintenance.

Jeffersonville

Jeffersonville, near Louisville Kentucky, is like many commuter cities, and faces its share of challenges. Because many residents work across the state line, the local economy depends on things that are not local. Jeffersonville may not provide the stability that you’re looking for.

Logansport

Small town charm is nice, but when there are few economic opportunities, it doesn’t make up for it. With high poverty rates and a slow housing market, buying a house here could end up costing you more than it’s worth.

Disclaimer: This list is solely the author’s opinion based on research and publicly available information.