What Is the Cost of Living in Indiana?

Indiana offers a lot to its residents. Chief among these is the low cost of living in Indiana.  The cost of living in Indiana is 82.1 compared to a national average benchmark of 100. What does that mean?

Basically, if you bought a collection of goods and services that cost on a national average cost $100.  Those same goods and services, if all were purchased in Indiana, would only cost $82.10. Overall, Indiana is in the lowest 20% to 30% for cost of living in the US.  To say this differently, Indiana is often ranked as the 10th through the 15th cheapest state to live in. The range is due to which survey you read or think is most accurate.  But, you will see Indiana ranked as the 10th to 15th cheapest.

From Indiana’s flat rate income tax of 3.4% to property tax caps written into the state constitution, Indiana is focused on keeping more of your money in your pocket.  This article will compare the cost of living in Indiana to other states. Also, we will look for the cheapest place to live in Indiana. We will end by taking a deeper focus on Northwest Indiana and how it compares to the state and the Chicagoland area.  

Where Indiana Ranks Among Cheapest States in the U.S.

Indiana is one of the states with the lowest cost of living. An area’s cost of living is determined by looking at the average annual costs for specific items.  The items commonly include specific grocery items, utilities, transportation & fuel costs, and housing costs.  Each is ranked, weighted, and then placed into an equation. The results form an index.  

We have reviewed the various surveys, and Indiana end seems to be frequently ranked somewhere between 10th and 15th cheapest state in the country.  Indiana’s neighboring states varied. Michigan often was placed slightly less expensive than Indiana. Kentucky and Ohio regularly were ranked more expensive than Indiana. Illinois was always ranked significantly more expensive than Indiana. The average cost of living in Indiana makes it likely the cheapest place to live in the Great Lakes area but sometimes comes in second place to Michigan.   

The Cheapest Place to Live in Indiana 

Using the same methods to rank the states, we found the cheapest cities and towns in Indiana for 2020. Alexandria, Indiana is the winner. With a population of about 5,000 people this central Indiana town’s relatively high incomes combined with some of the lowest housing costs in the state make it the most affordable place to live in Indiana. Below is a list of other great places with the lowest cost of living in Indiana.  

Top 10 Cheapest Places to Live in Indiana

1. Alexandria
2. Tipton
3. Rochestot 
4. Hartford City 
5. Princeton 
6. North Manchester
7. Huntington 
8. Wabash 
9. Linton 
10. Portland 

Northwest Indiana:  The Cheapest Place in Chicagoland

Northwest Indiana offers an outstanding alternative to people living in Chicago or in the Chicago suburbs in Illinois.  It’s not secret Chicago has a high cost of living and that Chicago and Illinois are running from behind financially. This has caused tax rates to soar in Chicago.  However, just a few miles away are the Northwest Indiana suburbs where the cost of living is lower.  

The Northwest Indiana suburbs have a lower cost of living than Chicago for many reasons.  First, Indiana protects its residents against high taxes. Indiana income tax is a flat rate of 3.4%.  Secondly, Indiana caps property tax rates on residential property at 1% of the property’s assessed value. These both work to get more money in Hoosier’s pockets, not the state and local governments. 

Indiana is known as the crossroads of America. Depending who you ask, Indiana is the eastern most Midwest state, or it is the western most eastern state.  Yeah, we know that was confusing to read. More interstates and rail lines connecting the eastern US to the western US cross Indiana than any other state.  Thus, access to goods and services is easily obtainable in Indiana.  

Lastly, Indiana is traditionally a business friendly state. It is easy to start a business in Indiana. More business creation means more options for consumers.  More options means more competition. Also, wages including minimum wage are lower in Indiana. This allows business owners to sell their goods and services at lower prices. This keeps prices in check. All of these factors help drive prices down and maintain a lower standard of living. 

Indiana Is A Great Place to Live 

The quality of life in Indiana is outstanding.  Career opportunities are abundant. The state has major metro, minor metro, and rural areas.  Home prices are low compared to other nearby states and the national average. The average cost of living in Indiana per year is low compared to many other states.  Indiana possesses some of the best private and public universities in the US. The crime rate in Indiana hovers around the national rate. But most of all, Indiana offers a lot of stability.

Indiana is a very stable state. During the Great Recession Indiana did feel the pain like every area of the country. But, as a whole, Indiana recovered more quickly than many other states in the US. Indiana is not prone to large natural disasters. All of this combines to make Indiana a great place to live, work, and raise a family.  

Quadwalls.com Can Help You Find Your New Home

Are you searching for a home for sale in Northwest Indiana?  If so, we can help you. Take a look at our website where you can search by each city. Quadwalls.com is the premier real estate website for Northwest Indiana Homes.  Please, contact us so we can help you get moving towards the purchase of your new home.