Rising cost of basics outpaces inflation in Indiana, United Way data shows
INDIANAPOLIS – The cost of household necessities in Indiana has outpaced inflation every year for more than 15 years, leaving many households struggling to get by, according to new data from United For ALICE provided through a partnership between Indiana United Ways and United Way of Central Indiana.
The latest State of ALICEreport for Indiana includes data from the ALICE Essentials Index, which tracks the rising costs of only six basics families need to live and work: housing, child care, food, transportation, health care and technology. Between 2007 and 2024, the ALICE Essentials Index for Indiana increased more than 61%, compared with 52% for the broader Consumer Price Index (CPI), which reports inflation across more than 200 categories of goods and services.
The report highlights the growing financial strains on households in poverty and ALICE, an acronym for Asset Limited, Income Constrained, Employed. ALICE households earn less than the basic costs of housing, child care, food, transportation, health care and technology, plus taxes. Yet, because their income is above the Federal Poverty Level, they often don’t qualify for assistance. From child care providers to cashiers to nursing assistants, ALICE workers hold essential jobs that keep our economy running and that we depend on every day.
In Central Indiana, 35% of households are struggling to afford their basic needs, ALICE data shows. That’s over one in three households – 257,530 households.
Statewide, 38% of households – over 1 million households – can't make ends meet.
Indiana United Ways, United Way of Central Indiana and their partners use ALICE data to understand the challenges facing our neighbors and create solutions that help families meet their needs today and build stability for tomorrow.
“Forty-two local United Ways across the state of Indiana actively listen for and strive to understand the causes of financial hardship for individuals and families in their regions of the state. ALICE data enables them to focus their strategies and work collaboratively to address the urgent needs of struggling households while identifying barriers preventing long-term success,” said Michael Budd, president and CEO of Indiana United Ways. “For every household that qualifies for social supports, many more go unassisted because they are just above the income eligibility requirements. United Way organizations across Indiana work every day to help these struggling households find local resources and have access to the full range of supports they need to thrive.”
“Across Central Indiana, ALICE families are the backbone of our communities — the caregivers, delivery drivers and essential workers we rely on every day. Yet too many continue to face barriers to financial stability despite working hard,” said Denise Luster, chief data and technology officer for United Way of Central Indiana. “At United Way of Central Indiana, we are committed to lifting the voices of ALICE families and using this data to mobilize resources, expand opportunity and help distance 10,000 households away from poverty. Because when ALICE families thrive, our entire community is stronger.”
While the Federal Poverty Level has long been used as the basis for determining eligibility for public assistance, the ALICE report shows that this official measure is obsolete and underestimates the true extent of financial hardship.
ALICE data shows that the minimum cost to live and work in Indiana in 2024 was $28,764 for a single adult and $74,028 for a family of four with two adults, an infant and a preschooler – nearly double the Federal Poverty Level figure of $15,060 for a single adult and more than double the figure of $31,200 for a family of four.
Data from the report shows that in United Way of Central Indiana’s seven-county service area of Boone, Hamilton, Hancock, Hendricks, Marion, Morgan and Putnam counties:
24% of households fall below the ALICE threshold but above the Federal Poverty Level, and 11% of households fall below the Federal Poverty Level.
Marion County has the highest percentage of households below ALICE at 41%, followed by Putnam County at 38%.
Marion County has the highest number of households below ALICE with 168,381 households, followed by Hamilton County with 34,764 households.
Racial disparities persist across United Way of Central Indiana’s region, with 50% of Black households and 42% of Hispanic households living in poverty or below the ALICE Threshold.
Key statewide findings from the report show that in 2024:
Family structure is a strong predictor of financial stability. 72% of households headed by single women and 49% of households headed by single men were below the ALICE Threshold in 2024.
Disparities are stark. 55% of Black households in Indiana live below the ALICE Threshold, compared to 36% of White households. Hispanic and multiracial households face similar challenges at 43%. While the largest number of households in need are white, communities of color are disproportionately impacted.
Financial hardship is not limited to one type of community. ALICE households are present in every county across Indiana, and the rates of hardship are nearly identical in rural and urban areas – 38% of households fall below the ALICE Threshold in both.
To read the report and dive into statewide and county-specific data, go to UnitedForALICE.org/Indiana.
For more information and interview requests about ALICE data in your community, please contact your local United Way.
In late June, Indiana United Ways plans to relaunch "Making Tough Choices," an interactive, online simulation tool that allows people to dive deeper into the challenges ALICE families face. Once available, the tool will be featured at iuw.org.
About Indiana United Ways
Indiana United Ways (IUW) is the state membership association for local United Ways serving Indiana counties. It provides a wide range of advocacy, training, technical assistance, networking, and grant opportunities to ensure that local United Ways meet their community’s most pressing needs. Learn more about Indiana United Ways at iuw.org.
About United Way of Central Indiana
United Way of Central Indiana is uniquely positioned to bring the resources of philanthropy, businesses, local government, nonprofits and neighborhoods together to tackle generational poverty. With a focus on basic needs, early care and learning, economic mobility, and safe and affordable housing, United Way helps people live the lives they are capable of living. United Way of Central Indiana serves Boone, Hamilton, Hancock, Hendricks, Marion, Morgan and Putnam counties. Visit uwci.org.
About United For ALICE
United For ALICE is a U.S. research organization driving innovation, research and action to improve life across the country for ALICE® (Asset Limited, Income Constrained, Employed) and for all. Through the development of the ALICE measurements, a comprehensive, unbiased picture of financial hardship has emerged. Harnessing this data and research on the mismatch between low-paying jobs and the cost of survival, ALICE partners convene, advocate and collaborate on solutions that promote financial stability at local, state and national levels. This grassroots ALICE movement, led by United Way of Northern New Jersey, has spread to 41 states and the District of Columbia and includes United Ways, corporations, nonprofits and foundations in Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawai‘i, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Washington, D.C., West Virginia and Wisconsin; we are United For ALICE. For more information, visit: UnitedForALICE.org.