The city came to prosperity in the early 1900s, seeing rapid growth due to the United States Steel Corporation building its largest steel plant in the city.

Growing overseas competitiveness in the steel industry caused U.S. Steel to lay off many workers from the Gary area.

Today, it is estimated that one-third of all homes in Gary are unoccupied and/or abandoned. Less than 80,000 people live in the city today, 55% less compared to 1960. The city faces large levels of unemployment, decaying infrastructure, and low literacy and educational attainment levels.