Austin, a small city in Scott County, southeastern Indiana, has been named the poorest town in the state based on recent analyses of U.S. Census data and economic surveys. Despite its modest size, with a population hovering around 4,000, Austin faces a range of socioeconomic challenges that set it apart from other Indiana communities.
Key Economic Indicators
- Median Household Income: Austin’s median household income is $27,008, less than half the Indiana state average of $61,944. More recent data suggests a slight increase to $30,473 by 2023, but this remains significantly below state and national averages.
- Poverty Rate: Approximately 18% of Austin’s population lives below the poverty line, compared to the national average of 12.4%. Certain demographics, particularly women aged 55–64, are disproportionately affected.
- Education: Only 10.8% of adults in Austin hold a bachelor’s degree or higher, far below Indiana’s statewide rate of 27.8%.
- SNAP Benefits: Over a quarter (27.4%) of Austin households receive Supplemental Nutrition Assistance Program (SNAP) benefits, compared to just 9% statewide.
- Property Values: The median home value in Austin is $74,200, less than half the Indiana average of $158,500. More recent figures place the median property value at $88,000.
Demographics and Community Profile
- Population: Austin’s population has remained relatively stable, with minor fluctuations. The 2023 estimate is 3,588, down slightly from 3,596 in 2022. Other sources report a 2025 population of 4,229, indicating slow growth.
- Ethnic Composition: The community is predominantly White (Non-Hispanic), accounting for over 93% of residents.
- Homeownership and Commute: The homeownership rate is 64.8%, and most residents commute by car, with an average commute time of 25.9 minutes.
- Language: English is the primary language spoken at home for all reported households2.
Historical and Social Context
Austin’s economic struggles are rooted in decades of industrial decline, unemployment, and underinvestment. The town’s unemployment rate spiked dramatically in the late 1980s and early 1990s, reaching as high as 16.9% in January 1990, and has remained above national averages for extended periods. This economic hardship has contributed to a range of social issues, including:
- Substance Abuse Crisis: Austin became nationally known as the epicenter of a devastating HIV outbreak in the mid-2010s, fueled by widespread intravenous drug use. Experts attribute this crisis to a combination of poverty, lack of opportunity, boredom, and underfunded mental health and substance abuse services.
- Infrastructure and Social Services: Years of neglect have led to deteriorating infrastructure, limited recreational opportunities, and insufficient support for vulnerable populations.
Community Resilience and Outlook
Despite these challenges, Austin retains a sense of community pride and resilience. Local leaders and residents continue to work toward improving conditions, advocating for better healthcare, education, and economic opportunities. Initiatives to address substance abuse, improve public health, and attract new investment are ongoing, though progress is gradual.
Austin vs. Indiana Averages
| Indicator | Austin (2023) | Indiana Average |
|---|---|---|
| Median Household Income | $27,008–$30,473 | $61,944 |
| Poverty Rate | 18% | ~12% |
| Bachelor’s Degree or Higher | 10.8% | 27.8% |
| Median Home Value | $74,200–$88,000 | $158,500 |
| SNAP Benefit Recipients | 27.4% | 9% |
Austin’s story is a reflection of the broader struggles facing many small towns in rural America—economic decline, public health crises, and the ongoing challenge of revitalization. While the statistics are sobering, efforts to address these issues continue, offering hope for a brighter future.
Sources:
- https://my1053wjlt.com/this-is-the-poorest-town-in-indiana/
- https://datausa.io/profile/geo/austin-in
- https://openwa.pressbooks.pub/lwtech88readings/chapter/81-austin-indiana-the-hiv-capital-of-small-town-america-wapner/
- https://worldpopulationreview.com/us-cities/indiana/austin
- https://en.wikipedia.org/wiki/Austin,_Indiana
