STATEWIDE — A growing share of Hoosiers are struggling to make ends meet as rising housing and living costs continue to outstrip wage growth, recent data shows.
More than one-third of households in parts of Indiana now live at or near the poverty line or in what experts call the “ALICE” category — working, but asset-limited, income-constrained and unable to afford basic household expenses over the long term. Financial hardship has steadily increased over the past several years, reflecting stagnant wages and escalating costs for rent, utilities, childcare and other essentials.
Housing costs in Indiana have climbed sharply, and the gap between what renters earn and what they need to afford a modest home is widening. To afford a basic two-bedroom apartment at fair market rent without spending more than 30% of income on housing, a full-time worker in Indiana must earn more than $22 an hour — significantly higher than the average hourly wage earned by the typical renter. At the same time, Indiana’s median renter household income ranks near the bottom of Midwest states, underscoring the challenge facing many working families.
The mismatch between pay and housing costs means that many Hoosiers spend a large share of their income just to keep a roof over their heads. Across the state, a growing number of households are considered cost-burdened, with rent and utilities consuming more than 30% of their earnings, and a significant number are severely cost-burdened, spending more than half their income on housing and basic needs.
Local nonprofits and housing advocates have stepped in to help with rental assistance programs and service referrals, but they warn that without substantial policy changes at the state and federal level — including strategies to boost wages, expand affordable housing stock, and align safety-net resources — the economic divide will continue to widen. Many argue that coordinated government intervention is critical to ensure that workers and families can afford both housing and other necessities in communities across Indiana.
