Cost of Living in Indiana in 2025

Indiana Cost of Living: Quick Takeaways

Housing Costs: The average rent for a one-bedroom apartment in Indiana is projected to reach $1,475 in 2025, showing significant growth from $700 in 2010.
Transportation Expenses: Public transit fares average $1.77 per ride while gas prices hover around $3.21 per gallon.
Healthcare Costs: Monthly employer-sponsored health insurance averages about $140, with silver plan premiums near $400.
Income Levels: Median household income is expected to hold steady at approximately $61,044 in 2025.

Indiana offers a varied cost of living landscape shaped by housing, transportation, healthcare and education expenses.

Below is a detailed analysis of the 2025 costs residents can expect across different categories in Indiana.

1. Housing Costs in Indiana

Housing is a major factor affecting overall living expenses. Below are averages for renting a one-bedroom apartment over recent years in Indiana:

2010: Approximately $700
2015: Around $850
2020: Approximately $1,100
2024: Reached $1,400
2025: Projected at $1,475

These numbers demonstrate a steady upward trend in rental costs within the state.

Understanding real estate market trends can be valuable for hospitality employers and property managers navigating Indiana’s housing costs.

2. Homeownership and Real Estate Trends in Indiana

For those looking to buy a home, the real estate market has experienced appreciable growth:

2010: Median home price was about $150,000
2015: Increased to $180,000
2020: Around $220,000
2024: Reached $242,672
2025: Projected at $253,014

The housing market remains competitive and steadily appreciating.

3. Transportation Expenses in Indiana

Indiana residents have several transportation options with costs including:

Public Transit: One-way fares average $1.77, while monthly passes cost approximately $45.10
Fuel Costs: Gasoline prices in 2025 average $3.21 per gallon
Vehicle Maintenance: Annual maintenance averages $1,200

Transportation expenses can vary depending on individual commute and vehicle type.

4. Utility Costs in Indiana

A typical monthly utility bill for a standard apartment includes:

Electricity: $125.00
Internet Services: $67.10
Total Utilities: $192.10

Utility costs depend on consumption and provider.

5. Grocery and Food Expenses in Indiana

Grocery spending is slightly below national averages. Estimated monthly grocery costs per person are around $300.

Dining out costs vary, with casual meals averaging $19 and mid-range restaurant meals costing approximately $63.50.

For restaurant owners and managers looking to optimize dining experiences and menu pricing, insights from restaurant consumer trends are useful resources.

6. Healthcare Costs in Indiana

Healthcare expenses include insurance and out-of-pocket costs:

Employer-Sponsored Health Insurance: Monthly premiums average $140
Silver Health Insurance Plan: Premiums cost approximately $400 per month

Healthcare costs differ based on coverage and medical needs.

7. Educational Expenses in Indiana

Education options offer varying costs:

Public Schools: Generally free and funded by taxes
Private Schools: Average tuition about $10,000 annually
In-State University Tuition: Approximately $9,000 per year

Educational spending depends on the level and type of schooling.

8. Entertainment and Leisure in Indiana

Popular leisure activities include:

Movie Tickets: Around $12.40 each
Gym Memberships: Average $34.30 per month
Dining Out: Meals at mid-range restaurants cost about $63.50
Annual Entertainment Spend: Approximately $2,000 per person
Personal Care Services: About $600 annually
Miscellaneous Goods and Services: Close to $700 annually

These contribute to residents’ lifestyle and wellbeing.

Hospitality businesses benefit from considering customer loyalty secrets to enhance guest retention in Indiana’s competitive leisure market.

9. Taxes and Miscellaneous Fees in Indiana

Indiana's tax landscape includes:

State Income Tax: Flat rate of about 3.23%
Sales Tax: General sales tax rate is 7%
Property Tax: Average rate is 0.87%

Taxes impact household budgets and economic activity.

10. Childcare and Family Expenses in Indiana

Family-related costs encompass:

Daycare Services: Average $1,484 monthly
After-School Programs: Approximate monthly cost $500
Extracurricular Activities: About $200 monthly

Families should plan accordingly for these expenses.

11. Clothing and Personal Care in Indiana

Spending on personal items typically includes:

Clothing: Approximately $100 monthly
Personal Care Products and Services: About $50 monthly

These costs vary with lifestyle and preferences.

12. Insurance Costs in Indiana

Insurance premiums are an important budget consideration:

Health Insurance: Monthly average $400 for a silver plan
Auto Insurance: Annual average $1,200
Homeowners Insurance: Annual average $1,000
Renters Insurance: Annual average $200

Insurance costs provide essential financial protection.

Restaurant owners may find practical information on restaurant insurance costs useful for managing their business risks.

13. Miscellaneous Expenses in Indiana

Additional living expenses include:

Entertainment: Approximately $2,000 annually
Personal Care Services: About $600 annually
Miscellaneous Goods and Services: Around $700 annually

These contribute to a well-rounded lifestyle.

14. Income and Salaries in Indiana

Median household income history:

2010: $46,000
2015: $50,000
2020: $57,000
2023 & 2025: $61,044

Income growth reflects evolving economic conditions within the state.

Hospitality employers in Indiana can gain hiring and salary insights from reports such as top paying restaurant jobs to plan competitive compensation packages and recruitment strategies.

15. Comparison with National Averages

Indiana compares favorably overall with the U.S. average costs:

Overall Cost of Living: Approximately 9% lower than national average
Housing: 23% less expensive than the national average
Utilities: Approximately 9% lower
Food: 2% below national average
Healthcare: 6% lower in costs
Transportation: Slightly below national average by 1%
Goods and Services: Higher by about 16%

These insights help residents and newcomers make informed financial decisions.

Our Methodology for Indiana Cost of Living Figures

To compile this comprehensive cost of living profile for Indiana, we sourced data from trusted platforms including government publications, housing and transportation databases, healthcare reports and consumer pricing indexes. Where specific data was unavailable, we generated estimated figures grounded in related market trends. This approach ensures a reliable and current snapshot of Indiana's cost landscape in 2025.

Indiana Cost of Living: Conclusion

Indiana's cost of living in 2025 reflects a balance of affordability and steady growth especially in housing and transportation.

Lower housing prices and utility costs contribute to its favorable standing against national averages, while some goods and services are relatively higher priced.

By understanding these comprehensive cost components, residents and those considering relocation can better plan their finances and lifestyle in Indiana.

For those exploring hospitality careers or employer considerations in the Indiana market, resources on restaurant labor shortages and hiring strategies can provide important context.