Number of households in or near poverty continues to rise in Central Indiana, data shows
From 2021 to 2022, the number of Central Indiana households in or near poverty increased by 5%, according to updated data from United Way. This represents a continuing trend: The number of households in or near poverty has increased by 17% since 2018.
In 2022, more than 257,400 households – over one in three households – in United Way's seven-county service area were in poverty or considered ALICE, meaning they earned above the Federal Poverty Level but not enough to afford a basic household budget. That’s an increase of more than 13,000 households over the previous year.
These findings are part of an updated report from United Way of Central Indiana and Indiana United Ways, along with research partner United For ALICE: “ALICE in the Crosscurrents: An Update on Financial Hardship in Indiana.” The report updates figures published last year about households that are in poverty or considered ALICE, an acronym for Asset Limited, Income Constrained, Employed.
ALICE represents a growing number of families who are living paycheck to paycheck and struggling to meet their basic needs of housing, child care, food, transportation and health care. They are the families United Way and its partners seek to serve.
Statewide, more than 1 million households – 40% – were in poverty or considered ALICE in 2022. That is an increase of 10% since 2019.
The updated report found that, while wages for the lowest paid jobs rose from 2021 to 2022, household costs increased, and pandemic-related assistance ended, having the most notable impact on families with children.
The United Way report includes an update to the ALICE Household Survival Budget, which provides a more complete picture of what families need to cover the basics in a modern economy – and helps us better understand how many people are living in or near poverty. According to the ALICE report, the average cost of living for a family of four in Indiana in 2022 was $81,468 – nearly three times the Federal Poverty Level figure of $27,750 and a 23% increase from 2021.
Data from the report shows that in Central Indiana:
United Way of Central Indiana’s seven-county service area – Boone, Hamilton, Hancock, Hendricks, Marion, Morgan and Putnam counties – accounts for 24% of all poverty and ALICE households in the state.
Of the seven counties, Marion County had the highest percentage of households in poverty or ALICE at 43%.
57% of Black households and 44% of Hispanic households were in poverty or considered ALICE in United Way’s seven-county service area.
Key findings from the report regarding statewide data include:
Households headed by single women had the highest rate of financial hardship in Indiana at 75% in 2022.
Of the 20 most common jobs in Indiana in 2022, 75% still paid less than $20 per hour. And of the workers in these most common occupations, 28% were below the ALICE threshold.
51% of Indiana households over age 65 were below the ALICE threshold in 2022.
In 2022, 59% of Black, 49% of American Indian/Alaska native, 47% of Hispanic, and 45% of households headed by someone of two or more races were below the ALICE threshold in Indiana, compared to 37% of white and 36% of Asian households.
Only 30% of Hoosier households in poverty or considered ALICE reported having emergency savings or rainy day funds. These households were also likely to face unexpected medical expenses – and when they did, 29% had to pay out of pocket.
Housing costs continue to increase and affect those who may already be struggling financially. In 2022, one in three Indiana households below the ALICE threshold reported their rent or mortgage increased in the last 12 months.
Click the button below to read the report.