The state capital of Indiana, Indianapolis is also the state’s cultural and financial hub. The metropolitan area is home to 2 million residents of a variety of cultures and backgrounds. Here, they experience a thriving job market and low unemployment rates. Equally appealing is that the cost of living in Indianapolis is 9 percent lower than the national average, 0.6 percent lower than last year.
Estimated monthly costs in Indianapolis, though, vary based on where you live and your general expenses. To make sure this is one of the best places for your budget, we’ve broken down the city living index so you can see where your money will truly go.
- Housing costs
- Food prices
- Utility costs
- Transportation costs
- Healthcare costs
- Goods and services costs
- Tax rates
- How much do you need to earn to live in Indianapolis?
Indianapolis housing prices
Doing a comparison between housing expenses in Indianapolis and the rest of the country, the city is actually quite affordable. Housing prices are 20 percent below the national average. This aligns with cities like Little Rock, AR, and Grand Rapids, MI, whose costs of housing are pretty similar. Within Indiana, this average is almost identical to South Bend.
Looking directly at monthly rent, apartments in Indianapolis experienced only a slight increase over last year. One-bedroom apartments are up 12 percent, and two-beds are only up 11 percent. The average monthly rent for a one-bedroom is $1,154 and $1,281 for a two-bed place.
If home prices are on your mind, it’s good to know that the median sale price in Indianapolis is $250,000. This is an increase of 14.7 percent over last year. What’s worth noting is that with the current standard, homes stay on the market for an average of only five days. That’s not much time to commit, even at a decent price.
Indianapolis cost for rent by neighborhood
Figuring out where to live in Indianapolis is as simple as doing a little math. Forgo nearby cities, and instead, focus on those hidden gems whose location is still within the city limits.
Young professionals and those who want to live close to entertainment and downtown may lean toward Broad Ripple. One-beds in this cultural district average out to $1,901 per month.
If you’ve got a family and are in need of good schools and a welcoming atmosphere, Crooked Creek is for you. Here, you’ll find plenty of parks and other outdoor amenities, along with a lower one-bedroom rent of $1,035 per month.
For anyone who wants to live in Indianapolis and spare a little income on rent, there are plenty of inexpensive communities to check out. Make sure Chapel Hill – Ben Davis and East Side are on your list. Both have one-bedroom rent of less than $1,000.
Indianapolis food prices
A major place your money goes every month is food. Whether going out to lunch for a Reuben, grabbing a Dutch baby (pancake) for breakfast or having a slice of butterscotch pie, going out hits your living cost in one way. Shopping for groceries gets you in another.
That said, overall food costs in Indianapolis are 4.8 percent below the national average. This is a much better deal than food prices in a city like New York, where you’ll pay 44.4 percent above.
How do these savings translate to the grocery list of a single person? Well, say you wanted to make breakfast. You buy sausage, eggs, bread, orange juice, coffee, milk and bananas. That’s a lot of stuff for a meal, but your total bill is only $20.17, and it’s enough stuff to invite over a friend or two.
Going out obviously costs more and can put a strain on your cost of living if you do it too much. A single meal at an inexpensive place is only $15, but a three-course meal for two, at a mid-range restaurant, can produce a $75 bill.
Indianapolis utility prices
Don’t forget about utilities when adding up numbers on your cost of living in Indianapolis calculator. Items like electricity, gas, water, internet and even trash can all factor into this category.
Overall, Indianapolis utility prices are 4.9 percent above the national average, a 3.5 percent increase over last year.
Extremely cold winters and hot, humid summers are the culprits. Each season requires frequent use of either a heating or air conditioning unit, and using one each day increases the money you put toward utilities quickly.
All of this puts a person’s average energy bill each month up to around $190.03.
Indianapolis transportation prices
Getting around Indianapolis, whether alone or with your family, means making a choice. Will you use public transportation? Will you take on the expenses of owning cars? Each option is worth considering, especially once you know that overall prices are 7.3 percent below the national average.
The biggest of the transportation expenses that come with having a vehicle is parking. Yes, you’ll have maintenance costs, but parking could hit your pocketbook every day. The cost of a monthly parking pass depends on which garage or lot you pick. You can expect to pay anywhere from $60 to $100 per month, or a hefty day price. Valet parking may also be an option in some spots, but at a price that’s probably too high to spend on your car.
There’s also the option to forgo your car altogether and take advantage of public transportation. IndyGo is the city’s public transit system. Bus service runs through more than 30 different routes. A single ticket, which is good for two hours, costs $1.75. From there, you can buy passes for a single day ($4), 10 trips ($17.50) or 31 days ($60). A discounted college pass is also available.
Biking or walking as a preferred mode of transportation
For those who like to walk or bike around their city instead of taking the bus, living in Indianapolis isn’t the best fit for you. Walkability and biking scores are relatively low here, coming in at 37 and 51, respectively. However, there are some bike lanes throughout the city and certain areas, like Canal Walk, that make it easy to move about on foot.
Indianapolis healthcare prices
Healthcare costs are hard to calculate since they’re unique to each person. However, you can estimate the overall cost, and economic research shows that healthcare prices in Indianapolis are 11.2 percent below the national average.
This is highly beneficial for those living here who may need to make a few extra trips to the doctor. It may also help lower monthly costs associated with maintenance medications.
On average, a doctor’s visit here will cost you $96.77. A dental check-up carries an average bill of $98. And, that annual eye exam is $67 on average. When compared to averages in other cities, these numbers are considerably lower.
Indianapolis goods and services prices
Other items that belong on your cost of living in Indianapolis balance sheet are goods and services. These are all the items you like to do (or use) every month, but you could live without if you had to cut costs. They include entertainment costs, personal maintenance and more.
Overall, prices are 4.9 percent below the national average, but to understand what this means, you really need to look at the cost of individual expenses.
- A bottle of wine costs around $13.63
- A six-pack of beer (or you could splurge for a flight when you’re out) costs around $9.14
- A trip to the salon costs $38.20
- A movie ticket costs $10.04
These items add up and rather than maxing out your credit card, it’s always better to consider being intentional with your budget.
Taxes in Indianapolis
The state sales tax rate in Indiana is 7 percent. This is also the rate you’ll pay in Indianapolis as there are no county, city or special taxes tacked onto the state sales tax. So, if you purchase something worth $1,000, you’ll pay $70 extra in sales tax.
Like the sales tax rate, Indiana also has a flat income tax rate of 3.23 percent. No matter what you make, you’ll pay 3.23 percent of your salary in taxes.
How much do I need to earn to live in Indianapolis?
The median annual income in Indianapolis is $50,813, but will this average salary make it possible to afford an average apartment?
Experts suggest you spend around 30 percent of your income on rent. So, if the standard cost of a one-bedroom is $1,098, you’d need to earn $43,920 at a minimum. This is great news for your cost of living since this number is well below the median income of a single person.
If you’re not sure whether Indianapolis will work with your budget based on your salary as it stands now, check our free rent calculator to get a better idea of what you can afford.
Living in Indianapolis
Indianapolis provides its residents with all the large city amenities with a small-town, community feel. It’s a great place to put down roots and raise your family, but you won’t really know what it’s like to live there until you decide to make this new city your home.
If you’re comfortable with the cost of living in Indianapolis and believe you can afford all the averages, then this is the city for you!
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