Not too many bad areas in Nanaimo- the area around Nicol St. is the old part of the city and some of those houses are probably 100 years old and I believe a little mischief occurs there from time to time. Harewood is quite central and probably affordable. Departure Bay and Long Lake would be a little pricier and you'd probably want to check the property taxes before buying there, but possibly lower than Oregan State. Cedar to the south is a nice rural area and slightly off the beaten path. Not sure what the status of the stench from the pulp mill is these days.
It's a nice residential area in and around woodgrove, (not too close though), down northwest bay road,
and also a little further south of woodgrove around rutherford and jingle pot road, (some small acerages and hobby farms),
and that gets one away from the old old center of the town of nanaimo, which isn't very interesting
unless one wants to buy an old house and renovate it, which is all the fad these days, (I love them),
but would not do it there.