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

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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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

• 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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