Considering a move to Indiana? With its diverse economy and vibrant regions like Indianapolis and Fort Wayne, the state offers a great balance of affordability and quality of life.
In 2025, the average cost of living in Indiana is about 2% lower than the national average. Therefore, it stands as the most affordable state in the Great Lakes region. Here’s a closer look at what expenses to expect across housing, utilities, transportation, and more in Indiana.
TL;DR: Average Cost of Living in Indiana 2025
- Overall cost of living: 2% below national average
- Average required annual salary: $49,527
- Median home price: $255,000 (7.7% increase YoY)
- Average rent (1-bedroom apartment): $1,475
- Monthly utilities: About 9% lower than national average
- Healthcare costs: Approximately 6% below national average
- Grocery Costs: 2-3% above national average
- Transportation costs: Among the lowest in the Midwest
What Is the Average Cost of Living in Indiana?
To live comfortably in Indiana, an average annual salary near $49,527 is needed. This supports middle-class lifestyles across major cities and regions in the state.
Key monthly expenses include:
- Rent: Around $1,475 for a one-bedroom apartment statewide
- Groceries: Approximately $239 weekly, ranking Indiana among the most affordable for food
- Utilities: Roughly 9% below the U.S. average, despite recent electricity bill increases of 17.5%
- Transportation: Low public transit fares (~$1.77 per ride) and gas around $3.21/gallon
- Childcare: Costs range between $1,100 and $1,200 per month for preschool and daycare
For example, Indianapolis and Fort Wayne provide cost variations but overall remain affordable. Additionally, local economies support these cost levels well.
Housing and Rental Market in Indiana
Indiana’s housing market offers clear advantages in affordability. The average rent for a one-bedroom apartment stands at $1,475. Meanwhile, the median home price has reached $255,000, showing a 7.7% increase year over year.
Comparatively:
- vs. Ohio: Indiana rents are 8–12% lower; Ohio’s median home price is $271,500
- vs. Illinois: Rents average $1,662 in Illinois; median home price is $317,300
- vs. Kentucky: Kentucky’s rent is $1,300 (more affordable), but the median home price $279,700 is higher
- vs. Texas and Georgia: Indiana’s rent is slightly higher, but home prices are significantly lower ($316,000 in Texas; $365,000 in Georgia)
In Indiana, metro areas like Indianapolis balance urban living and affordability. Fort Wayne offers even lower rents and home prices. Smaller cities such as Lafayette provide more competitive housing options.
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Utilities and Other Living Expenses in Indiana
Utility prices across Indiana remain attractive, though rising electricity costs have pushed monthly bills higher.
- Average monthly utility cost is about 9% below the national average
- Electricity bills recently jumped by 17.5%, a factor to watch
In comparison:
- Ohio is seeing a 10–15% utility increase due to new fees
- Illinois utilities cost about $207/month, slightly higher but still competitive
- Kentucky has $133/month, with possible hikes coming
- Texas and Georgia sit near national averages
Other costs are favorable too:
- Indiana leads in grocery affordability, slightly cheaper than Ohio and Illinois
- Transportation costs are low, with gas priced at $3.21/gallon, much lower than Illinois’s $3.81/gallon
- Healthcare costs run about 6% less than the U.S. average, with insurance averaging $140/month
These factors help keep the average cost of living in Indiana manageable. Furthermore, they enhance overall household budgets.
Income and Job Market in Indiana
The median household income in Indiana is about $61,000. To live comfortably, residents need roughly $49,527 annually. This income level is close to Ohio and Kentucky’s median incomes. Illinois, Texas, and Georgia require higher salaries due to increased living costs.
Economic hubs like Indianapolis and Carmel offer jobs in manufacturing, healthcare, and tech. These markets support the salaries necessary for Indiana’s cost of living.
Therefore, Indiana remains attractive for job seekers who want good pay with affordable living costs.
Is It Worth It to Live in Indiana?
Indiana offers an attractive blend of affordability and livability.
- Housing and utility costs are lower than those of regional neighbors
- Healthcare and transportation costs enhance savings
- Urban centers are growing with diverse job markets
However, minor premiums in goods and services exist. Still, expenses overall remain manageable. As a result, Indiana is ideal for families and professionals seeking value.
Regional Insights and Relocation Tips
- Indianapolis: Strong urban core with affordable housing and jobs
- Fort Wayne: Budget-friendly rents and homes
- Bloomington and Lafayette: College towns with moderate costs and rich culture
- Evansville: Economic hub with competitive housing
When relocating, consider local property taxes and utility rates, since they vary. Also, research schools and neighborhood amenities closely. Be prepared for rising electricity costs and leverage employer healthcare benefits where possible.
Final Thought on Indiana’s Average Cost of Living
Indiana remains an affordable standout in 2025, with a cost of living 2% below the national average. Its housing market, utilities, transportation, and healthcare costs all keep living expenses low.
Compared to Ohio, Kentucky, Illinois, Texas, and Georgia, Indiana’s more affordable lifestyle supports a comfortable middle-class life. This balance of value and opportunity makes Indiana a prime choice for residents and investors alike.
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FAQs About Indiana’s Average Cost of Living
Is Indiana expensive compared to other states?
No. Indiana’s average cost of living is about 2% below the national average, making it one of the most affordable states in the Great Lakes region.
What is the average rent in Indiana?
The average rent for a one-bedroom apartment in Indiana is around $1,475 per month, which is lower than in neighboring states like Ohio and Illinois.
How much does it cost to buy a home in Indiana?
The median home price in Indiana is approximately $255,000, making homeownership more attainable compared to many nearby states.
What salary supports comfortable living in Indiana?
A yearly income of about $49,527 is generally enough to maintain a comfortable, middle-class lifestyle in Indiana.
How do utility costs affect the average cost of living in Indiana?
Utility costs in Indiana are about 9% below the national average, though some areas have seen slight increases in electricity prices recently.
