Home prices have surged in the U.S. in recent years. Driven by rising demand and supply constraints during the pandemic, the median home sale price spiked by nearly 50% from the second quarter of 2020 to Q3 in 2022. While the sale price of a typical American home has fallen in recent months since, housing prices remain at historic highs.
Not only have home values soared, but borrowing costs for home buyers have also climbed. The average interest rate on a 30-year fixed mortgage has been above 6% since September 2022, a high not seen in nearly a decade and a half. In a market defined by high prices and high mortgage rates, homeownership has become prohibitively expensive for a large number of Americans.
Still, housing prices are also subject to a number of factors that can be isolated from broader, nationwide market trends — and location is one of them. Two homes that are virtually identical can vary in price by hundreds of thousands of dollars, depending on where they are. And for prospective homeowners on a budget, some Indiana cities are far more affordable than others.
According to five-year estimates from the U.S. Census Bureau’s 2022 American Community Survey, the typical home in Indiana is worth $183,600. But across the 40 cities, towns and unincorporated communities in the state with populations of at least 25,000, median home values range from about $80,000 to nearly $500,000.
In any local market, home prices are often a reflection of what residents can afford. In Indiana, many of the least expensive cities for homebuyers are not high-income areas. Of the 40 Indiana cities with available data from the ACS, 19 have a median home value that is less than the statewide median. In each of these places, the typical household earns less than the statewide median household income of $67,173. Similarly, most of Indiana’s more expensive housing markets have higher earning populations.
Why It Matters
Source: Feverpitched / iStock via Getty Images
Homeownership is one of the most practical ways to build wealth in the United States, and rising borrowing costs and home values are pricing out a growing share of the population. The state of the U.S. housing market also has broader economic implications. According to the Congressional Research Service, spending associated with homeownership totaled $1.1 trillion in 2021, or nearly 5% of U.S. gross domestic product.
These are the cheapest and most expensive housing markets in Indiana.
40. Marion
Source: Jack R Perry / iStock via Getty Images
- Median home value: $79,500
- Homes worth over $1 million: 0.7%
- Homeownership rate: 58.9%
- Median household income: $42,366
- Total population: 27,528
39. Gary
Source: MattGush / iStock via Getty Images
- Median home value: $81,800
- Homes worth over $1 million: 0.3%
- Homeownership rate: 48.3%
- Median household income: $36,874
- Total population: 69,136
38. East Chicago
Source: Dennisyerger84 / Wikimedia Commons
- Median home value: $84,900
- Homes worth over $1 million: 0.4%
- Homeownership rate: 43.8%
- Median household income: $39,434
- Total population: 26,363
37. Muncie
Source: Public Domain / Wikimedia Commons
- Median home value: $88,000
- Homes worth over $1 million: 0.1%
- Homeownership rate: 49.7%
- Median household income: $40,309
- Total population: 65,167
36. Richmond
Source: Roberto Galan / iStock Editorial via Getty Images
- Median home value: $96,800
- Homes worth over $1 million: 0.3%
- Homeownership rate: 56.3%
- Median household income: $46,356
- Total population: 35,642
35. Terre Haute
Source: Public Domain / Wikimedia Commons
- Median home value: $99,600
- Homes worth over $1 million: 0.2%
- Homeownership rate: 53.0%
- Median household income: $41,230
- Total population: 58,599
34. Anderson
Source: Public Domain / Wikimedia Commons
- Median home value: $101,700
- Homes worth over $1 million: 0.2%
- Homeownership rate: 56.2%
- Median household income: $44,974
- Total population: 55,011
33. South Bend
Source: Aaron Yoder / iStock via Getty Images
- Median home value: $113,800
- Homes worth over $1 million: 0.5%
- Homeownership rate: 58.5%
- Median household income: $49,056
- Total population: 103,084
32. Michigan City
Source: Ron and Patty Thomas / iStock via Getty Images
- Median home value: $116,000
- Homes worth over $1 million: 0.3%
- Homeownership rate: 59.3%
- Median household income: $51,554
- Total population: 31,983
31. Kokomo
Source: davidwilson1949 / Flickr
- Median home value: $118,400
- Homes worth over $1 million: 0.3%
- Homeownership rate: 64.9%
- Median household income: $53,967
- Total population: 59,534
30. Elkhart
Source: Public Domain / Wikimedia Commons
- Median home value: $119,300
- Homes worth over $1 million: 0.7%
- Homeownership rate: 52.5%
- Median household income: $46,534
- Total population: 53,785
29. Evansville
Source: Public Domain / Wikimedia Commons
- Median home value: $121,100
- Homes worth over $1 million: 0.4%
- Homeownership rate: 54.2%
- Median household income: $49,853
- Total population: 116,906
28. Mishawaka
Source: Geoff Eccles / iStock via Getty Images
- Median home value: $128,200
- Homes worth over $1 million: 0.1%
- Homeownership rate: 48.4%
- Median household income: $51,543
- Total population: 50,899
27. Hammond
Source: Jacob Boomsma / iStock via Getty Images
- Median home value: $129,100
- Homes worth over $1 million: 0.4%
- Homeownership rate: 62.6%
- Median household income: $52,368
- Total population: 77,390
26. Lafayette
Source: Rodrigo A. Rodriguez Fuentes / iStock via Getty Images
- Median home value: $145,200
- Homes worth over $1 million: 0.2%
- Homeownership rate: 46.0%
- Median household income: $50,674
- Total population: 70,828
25. Fort Wayne
Source: Davel5957 / iStock via Getty Images
- Median home value: $152,500
- Homes worth over $1 million: 0.3%
- Homeownership rate: 62.6%
- Median household income: $58,233
- Total population: 264,514
24. New Albany
Source: Robin Gentry / iStock via Getty Images
- Median home value: $160,600
- Homes worth over $1 million: 0.1%
- Homeownership rate: 57.2%
- Median household income: $53,982
- Total population: 37,598
23. Goshen
Source: Wirestock / iStock via Getty Images
- Median home value: $163,700
- Homes worth over $1 million: 0.2%
- Homeownership rate: 62.7%
- Median household income: $52,233
- Total population: 34,704
22. Merrillville
Source: P0908ih / Wikimedia Commons
- Median home value: $176,600
- Homes worth over $1 million: 0.2%
- Homeownership rate: 67.2%
- Median household income: $62,221
- Total population: 36,214
21. Indianapolis
Source: Sean Pavone / iStock via Getty Images
- Median home value: $184,600
- Homes worth over $1 million: 1.0%
- Homeownership rate: 54.9%
- Median household income: $59,110
- Total population: 882,006
20. Jeffersonville
Source: Public Domain / Wikimedia Commons
- Median home value: $187,700
- Homes worth over $1 million: 0.6%
- Homeownership rate: 71.5%
- Median household income: $67,566
- Total population: 49,771
19. Portage
Source: Dennisyerger84 / Wikimedia Commons
- Median home value: $189,300
- Homes worth over $1 million: 1.4%
- Homeownership rate: 72.9%
- Median household income: $71,317
- Total population: 37,737
18. Lawrence
Source: HurricaneGonzalo / Wikimedia Commons
- Median home value: $193,100
- Homes worth over $1 million: 0.2%
- Homeownership rate: 64.8%
- Median household income: $70,762
- Total population: 49,218
17. Hobart
Source: Chris Light / Wikimedia Commons
- Median home value: $193,500
- Homes worth over $1 million: 0.4%
- Homeownership rate: 71.6%
- Median household income: $69,398
- Total population: 29,573
16. Franklin
Source: Oralleff / iStock via Getty Images
- Median home value: $195,100
- Homes worth over $1 million: 0.4%
- Homeownership rate: 67.8%
- Median household income: $72,344
- Total population: 26,073
15. Columbus
Source: Public Domain / Wikimedia Commons
- Median home value: $211,700
- Homes worth over $1 million: 0.7%
- Homeownership rate: 60.2%
- Median household income: $75,114
- Total population: 50,896
14. Greenwood
Source: Public Domain / Wikimedia Commons
- Median home value: $226,500
- Homes worth over $1 million: 0.5%
- Homeownership rate: 60.9%
- Median household income: $75,398
- Total population: 63,579
13. Valparaiso
Source: Geoff Eccles / iStock via Getty Images
- Median home value: $229,900
- Homes worth over $1 million: 0.6%
- Homeownership rate: 55.7%
- Median household income: $59,943
- Total population: 33,991
12. Plainfield
Source: Kenneth_Keifer / iStock via Getty Images
- Median home value: $238,000
- Homes worth over $1 million: 0.5%
- Homeownership rate: 63.3%
- Median household income: $77,249
- Total population: 35,078
11. Crown Point
Source: Roberto Galan / iStock via Getty Images
- Median home value: $250,800
- Homes worth over $1 million: 0.2%
- Homeownership rate: 86.1%
- Median household income: $92,810
- Total population: 33,735
10. Brownsburg
Source: valeriebb / Flickr
- Median home value: $253,700
- Homes worth over $1 million: 0.0%
- Homeownership rate: 71.3%
- Median household income: $101,883
- Total population: 29,379
9. Bloomington
Source: Public Domain / Wikimedia Commons
- Median home value: $267,900
- Homes worth over $1 million: 0.8%
- Homeownership rate: 35.6%
- Median household income: $46,543
- Total population: 79,006
8. Granger
Source: Mrprofdrjjjj / Wikimedia Commons
- Median home value: $279,800
- Homes worth over $1 million: 1.6%
- Homeownership rate: 94.8%
- Median household income: $112,734
- Total population: 30,019
7. Schererville
Source: JoeyBLS / Public Domain / Wikimedia Commons
- Median home value: $281,100
- Homes worth over $1 million: 0.8%
- Homeownership rate: 79.5%
- Median household income: $79,662
- Total population: 29,573
6. Noblesville
Source: Purdue9394 / iStock via Getty Images
- Median home value: $295,700
- Homes worth over $1 million: 1.2%
- Homeownership rate: 72.1%
- Median household income: $99,458
- Total population: 70,442
5. West Lafayette
Source: Marsha Williamson Mohr / iStock via Getty Images
- Median home value: $303,300
- Homes worth over $1 million: 0.2%
- Homeownership rate: 29.5%
- Median household income: $30,317
- Total population: 44,861
4. Fishers
Source: Public Domain / Wikimedia Commons
- Median home value: $339,000
- Homes worth over $1 million: 1.3%
- Homeownership rate: 77.1%
- Median household income: $126,548
- Total population: 99,041
3. Westfield
Source: kurtbeard / Flickr
- Median home value: $364,400
- Homes worth over $1 million: 3.9%
- Homeownership rate: 79.8%
- Median household income: $117,519
- Total population: 48,262
2. Carmel
Source: alexeys / iStock via Getty Images
- Median home value: $425,900
- Homes worth over $1 million: 5.1%
- Homeownership rate: 74.6%
- Median household income: $132,859
- Total population: 99,453
1. Zionsville
Source: indyagent / Flickr
- Median home value: $493,900
- Homes worth over $1 million: 7.3%
- Homeownership rate: 85.0%
- Median household income: $152,788
- Total population: 30,832
| Rank | Places in Indiana with at least 25,000 residents | Median home value ($) | Homeownership rate (%) | Median household income ($) | Total Population |
|---|---|---|---|---|---|
| 1 | Zionsville | 493,900 | 85.0 | 152,788 | 30,832 |
| 2 | Carmel | 425,900 | 74.6 | 132,859 | 99,453 |
| 3 | Westfield | 364,400 | 79.8 | 117,519 | 48,262 |
| 4 | Fishers | 339,000 | 77.1 | 126,548 | 99,041 |
| 5 | West Lafayette | 303,300 | 29.5 | 30,317 | 44,861 |
| 6 | Noblesville | 295,700 | 72.1 | 99,458 | 70,442 |
| 7 | Schererville | 281,100 | 79.5 | 79,662 | 29,573 |
| 8 | Granger | 279,800 | 94.8 | 112,734 | 30,019 |
| 9 | Bloomington | 267,900 | 35.6 | 46,543 | 79,006 |
| 10 | Brownsburg | 253,700 | 71.3 | 101,883 | 29,379 |
| 11 | Crown Point | 250,800 | 86.1 | 92,810 | 33,735 |
| 12 | Plainfield | 238,000 | 63.3 | 77,249 | 35,078 |
| 13 | Valparaiso | 229,900 | 55.7 | 59,943 | 33,991 |
| 14 | Greenwood | 226,500 | 60.9 | 75,398 | 63,579 |
| 15 | Columbus | 211,700 | 60.2 | 75,114 | 50,896 |
| 16 | Franklin | 195,100 | 67.8 | 72,344 | 26,073 |
| 17 | Hobart | 193,500 | 71.6 | 69,398 | 29,573 |
| 18 | Lawrence | 193,100 | 64.8 | 70,762 | 49,218 |
| 19 | Portage | 189,300 | 72.9 | 71,317 | 37,737 |
| 20 | Jeffersonville | 187,700 | 71.5 | 67,566 | 49,771 |
| 21 | Indianapolis | 184,600 | 54.9 | 59,110 | 882,006 |
| 22 | Merrillville | 176,600 | 67.2 | 62,221 | 36,214 |
| 23 | Goshen | 163,700 | 62.7 | 52,233 | 34,704 |
| 24 | New Albany | 160,600 | 57.2 | 53,982 | 37,598 |
| 25 | Fort Wayne | 152,500 | 62.6 | 58,233 | 264,514 |
| 26 | Lafayette | 145,200 | 46.0 | 50,674 | 70,828 |
| 27 | Hammond | 129,100 | 62.6 | 52,368 | 77,390 |
| 28 | Mishawaka | 128,200 | 48.4 | 51,543 | 50,899 |
| 29 | Evansville | 121,100 | 54.2 | 49,853 | 116,906 |
| 30 | Elkhart | 119,300 | 52.5 | 46,534 | 53,785 |
| 31 | Kokomo | 118,400 | 64.9 | 53,967 | 59,534 |
| 32 | Michigan City | 116,000 | 59.3 | 51,554 | 31,983 |
| 33 | South Bend | 113,800 | 58.5 | 49,056 | 103,084 |
| 34 | Anderson | 101,700 | 56.2 | 44,974 | 55,011 |
| 35 | Terre Haute | 99,600 | 53.0 | 41,230 | 58,599 |
| 36 | Richmond | 96,800 | 56.3 | 46,356 | 35,642 |
| 37 | Muncie | 88,000 | 49.7 | 40,309 | 65,167 |
| 38 | East Chicago | 84,900 | 43.8 | 39,434 | 26,363 |
| 39 | Gary | 81,800 | 48.3 | 36,874 | 69,136 |
| 40 | Marion | 79,500 | 58.9 | 42,366 | 27,528 |
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