Indiana, also known as the Hoosier State, is a great place to live. With its friendly communities, beautiful landscapes, and affordable cost of living, it’s no wonder why many people are choosing to call Indiana home. If you’re considering moving to Indiana or are already a resident, you may be wondering where the most affordable places to live are. Look no further, as we have compiled a list of the 14 most affordable places to live in Indiana in 2025.
1. Fort Wayne
Located in the northeastern part of Indiana, Fort Wayne is the second-largest city in the state. With a population of over 250,000, it offers a mix of urban and suburban living. The cost of living in Fort Wayne is 14% lower than the national average, making it an affordable option for those looking to buy a home. The city also has a strong job market, with major employers such as Parkview Health and General Motors.
2. Evansville
Situated in the southwestern part of Indiana, Evansville is the third-largest city in the state. It has a population of over 117,000 and offers a low cost of living, with housing costs being 25% lower than the national average. The city also has a thriving arts and culture scene, with events such as the annual West Side Nut Club Fall Festival and the Evansville Philharmonic Orchestra.
3. South Bend
Home to the University of Notre Dame, South Bend is a vibrant city in northern Indiana. It has a population of over 100,000 and offers a cost of living that is 16% lower than the national average. The city also has a strong economy, with major employers such as the University of Notre Dame, Memorial Hospital, and Honeywell Aerospace.
4. Muncie
Located in east-central Indiana, Muncie is a small city with a population of over 70,000. It offers a low cost of living, with housing costs being 30% lower than the national average. The city is also home to Ball State University, providing residents with access to higher education and a diverse community.
5. Lafayette
Situated in the central part of Indiana, Lafayette is a growing city with a population of over 75,000. It offers a cost of living that is 10% lower than the national average, making it an affordable option for those looking to buy a home. The city also has a strong job market, with major employers such as Purdue University and Subaru of Indiana Automotive.
6. Kokomo
Known as the “City of Firsts” for its history of inventions and innovations, Kokomo is a small city in north-central Indiana with a population of over 57,000. It offers a low cost of living, with housing costs being 27% lower than the national average. The city also has a strong manufacturing industry, with major employers such as Fiat Chrysler Automobiles and Delphi Electronics & Safety.
7. Terre Haute
Located in western Indiana, Terre Haute is a city with a population of over 60,000. It offers a cost of living that is 19% lower than the national average, making it an affordable option for those looking to buy a home. The city also has a strong education sector, with major employers such as Indiana State University and Rose-Hulman Institute of Technology.
8. Bloomington
Home to Indiana University, Bloomington is a college town in south-central Indiana with a population of over 85,000. It offers a low cost of living, with housing costs being 10% lower than the national average. The city also has a diverse and vibrant community, with a strong arts and culture scene and a variety of outdoor activities.
9. Columbus
Located in southern Indiana, Columbus is a small city with a population of over 47,000. It offers a cost of living that is 14% lower than the national average, making it an affordable option for those looking to buy a home. The city is also known for its modern architecture, with buildings designed by renowned architects such as Eero Saarinen and I.M. Pei.
10. Richmond
Situated in east-central Indiana, Richmond is a small city with a population of over 35,000. It offers a low cost of living, with housing costs being 26% lower than the national average. The city also has a strong manufacturing industry, with