Goshen, Indiana, once a booming industrial hub known for its manufacturing prowess, had seen better days. Nestled in the heart of the Midwest, the town of around 34,000 was hit hard by the decline of American manufacturing in the late 20th century. Factories closed, jobs disappeared, and the once-bustling downtown was left with empty storefronts and a struggling economy. But fast forward to 2024, and you wouldn’t recognize Goshen. This town is back on the rise, thanks to smart real estate development, a surge in local businesses, and a community determined to reinvent itself. Here’s how Goshen went from bleak to booming in just a few years.
A Town at a Crossroads
Like many Midwestern towns, Goshen’s fortunes were tied to the manufacturing sector. When that sector declined, the effects were devastating. Unemployment climbed, young people left in droves for better opportunities, and downtown Goshen became a ghost town after 5 p.m. By the 2010s, things were looking grim. But Goshen had something up its sleeve—a group of local leaders, investors, and residents who refused to give up. They came together with a plan to turn things around, focusing on three main areas: revitalizing downtown through strategic real estate development, fostering a diverse business environment, and leveraging Goshen’s cultural and natural assets.
Revamping Downtown with Strategic Real Estate Development
Goshen’s resurgence kicked off with a series of bold real estate moves aimed at revitalizing the heart of the town—its downtown. The goal was clear: make downtown Goshen a destination where people wanted to live, work, and play. But this wasn’t about tearing down old buildings and starting fresh. It was about embracing Goshen’s history and breathing new life into what was already there.
The centerpiece of this effort was the renovation of the Hawks Building, a massive, century-old brick warehouse that had sat empty for years. Local developers saw potential where others saw decay. With help from state and federal historic preservation tax credits, they turned the Hawks Building into a mixed-use development featuring loft apartments, retail spaces, and an open-concept market hall. The first-floor market hall, The Millworks Market, became an instant hit. With its eclectic mix of food vendors, artisanal shops, and local craft breweries, it became a gathering place for residents and visitors alike, offering something you’d expect to find in a big city, not a Midwestern town.
Another key project was the transformation of the Old Bag Factory, a historic industrial building that had been vacant for years. Developers repurposed it into a vibrant arts and small business center. The factory now houses artist studios, boutiques, a pottery studio, and even a craft distillery. It has become a focal point for Goshen’s arts community and a destination for tourists looking to experience the town’s creative side.
The real estate renaissance continued with the River Race Revival Project, a public-private partnership to redevelop the area along the Elkhart River. This initiative turned a blighted section of riverfront into a lively mixed-use district with residential lofts, restaurants, and a riverside promenade that connects to the city’s expanding trail network. The development features outdoor event spaces, green areas, and access points for kayaking and paddleboarding, transforming what was once an eyesore into a vibrant hub of activity.
But it wasn’t just about high-profile developments. The Goshen Facelift Initiative offered grants to local business owners to restore the facades of their historic buildings. The result? A stunning revival of downtown Goshen’s architectural charm, making it more attractive to both residents and tourists. Empty storefronts began to fill up with new businesses, and foot traffic returned to the streets.
Fostering Business Growth and Innovation
With the real estate pieces falling into place, Goshen needed to get businesses back in the game. The town launched the Goshen Growth Initiative in 2019, a program designed to attract and support new businesses, promote local entrepreneurship, and diversify the economy beyond traditional manufacturing.
One of the first success stories was Southside Soda Shop & Diner, a retro-style eatery that capitalized on Goshen’s growing food scene. With its classic diner fare and old-fashioned soda fountain, it became a magnet for families, tourists, and college students from nearby Goshen College. The success of Southside Soda Shop encouraged other restaurateurs and entrepreneurs to take a chance on Goshen, leading to a wave of new eateries, coffee shops, and specialty stores opening downtown.
Meanwhile, Goshen also positioned itself as a hub for innovation in the RV industry, which has deep roots in the region. The town established the RV Innovation Lab, a collaborative workspace and research facility aimed at bringing together manufacturers, engineers, and designers to work on sustainable and tech-driven solutions for the future of recreational vehicles. This initiative not only retained local talent but also attracted new professionals interested in the future of mobility and design.
But the town didn’t stop there. Goshen embraced the rise of remote work, marketing itself as a perfect place for digital nomads and remote workers looking for a better quality of life. High-speed internet infrastructure was upgraded, and co-working spaces like Launchpad Goshen were developed to accommodate the influx of freelancers, startups, and small companies. Suddenly, young professionals who could live anywhere were choosing Goshen for its affordable cost of living and vibrant downtown scene.
Building a Destination with Culture and Community
Real estate and business were only part of Goshen’s comeback story. The town also leaned into its cultural and natural assets to build a destination that people wanted to visit and call home. The Goshen Theater, a historic movie house that had been closed for years, was restored and reopened as a multi-use performing arts venue. It now hosts everything from indie films to live music and community theater, serving as an anchor for downtown entertainment.
Goshen also doubled down on events and festivals that showcased its unique character. The First Fridays series became a major draw, transforming downtown into a lively scene on the first Friday of every month with live music, food vendors, art displays, and street performers. This regular event not only brings in tourists but also reinforces Goshen’s identity as a creative, vibrant community.
The town didn’t ignore its natural surroundings, either. The development of the Millrace Canal Trail, which runs through downtown along a historic canal, was expanded and connected to nearby parks and nature areas. This greenway offers miles of walking, running, and biking trails, giving residents and visitors a reason to get outside and explore.
The Big Payoff: Goshen’s Remarkable Turnaround
The results of Goshen’s efforts are nothing short of extraordinary. In just a few years, the town’s population has grown, new businesses are thriving, and the real estate market is hot again. Unemployment has dropped to its lowest levels in decades, and there’s a renewed sense of optimism in the air.
Downtown Goshen is now bustling with activity. Sidewalks that were once empty are crowded with people dining at outdoor cafes, browsing local shops, and enjoying street performances. The town has successfully attracted a mix of young professionals, families, and retirees looking for a vibrant place to live that still offers a slower pace of life.
Goshen has also become a model for other mid-sized towns in the Midwest looking to revitalize their own communities. It’s proof that with the right mix of strategic real estate development, business support, and a commitment to leveraging local culture, any town can make a comeback.
Lessons from Goshen’s Comeback
Goshen, Indiana, didn’t just happen upon its success. It was the result of thoughtful planning, smart investment, and a willingness to take risks. By focusing on preserving and repurposing its historic assets, supporting a diverse range of businesses, and creating a destination that celebrates its unique character, Goshen has become a blueprint for revitalization.
For towns looking to bounce back from economic downturns, Goshen’s story shows that it’s not just about what you build—it’s about how you build a future that people want to be part of.
