The 10 Best Places To Live In Indiana In 2023

Indiana – the Hoosier State – is a growing midwestern state. At its center is Indianapolis, a city of over 800,000. While Indy is great, the best places to live in Indiana are spread throughout the state. From the hilly southern towns to popular suburbs and stretched-out farmland, Indiana has a lot to offer. Read on to learn the best of them.

Why Should You Consider Indiana’s Best Cities?

Buying a house in Indiana comes with many perks. Whether it’s in a quiet small town or in the middle of Indianapolis, Indiana is one of the cheapest states to buy a house in the U.S. It’s an incredibly affordable place to live and its cities – like Indy – have a lot to offer. Even the quiet country towns have natural beauty and an appealing way of life for many. The state’s assets mean that first-time home buyers in Indiana can get a lot of bang for their buck when they buy a home.

10 Best Places To Live In Indiana

In order to choose the best places to live in Indiana, we first looked at the 350 most populated areas in Indiana. We then ranked them using a variety of criteria, such as unemployment rates, crime rates and the area’s well-being (you can read more on the specifics in the methodology section below). Let’s get started.

1. Carmel, IN

• Population: 98,137
• Mean yearly household income: $167,227
• Median home sold price: $489,187
• Median monthly rental price: $1,348
• Housing cost-to-income ratio: 15.2
• Home affordability index: 1.62

Just north of Indianapolis, Carmel is a suburban city with many of the amenities of a major city. It offers a thriving arts district, shopping centers, as well as the gorgeous Monon Greenway Trail and a bustling farmers market. It gets the top place for best places to live in Indiana because it ranks number one for desirability (search volume), number two for lowest violent crime rate and number two on the Sharecare Well-Being Index.

Check out houses for sale in Carmel and dig into the Carmel Housing Market Report to see how the market’s trending.

2. Meridian Hills, IN

• Population: 1,736
• Mean yearly household income: $278,878
• Median home sold price: $820,000
• Median monthly rental price: $1,176
• Housing cost-to-income ratio: 11.0
• Home affordability index: 1.61

About halfway between Carmel and downtown Indianapolis, Meridian Hills is a small town in a thrumming metropolis. Technically, Meridian Hills is a community within Washington Township, part of Marion County. Its nucleus is the Meridian Hills Country Club, which the community is built around. If you’re looking for a quiet, lush neighborhood with sizable homes and large lots, look no further than Meridian Hills.

Browse houses for sale in Meridian Hills and check out the Meridian Hills Housing Market Report.

3. Westfield, IN

• Population: 45,695
• Mean yearly household income: $145,959
• Median home sold price: $418,533
• Median monthly rental price: $1,234
• Housing cost-to-income ratio: 15.4
• Home affordability index: 1.65

Westfield is north of Carmel, with about a half hour drive to downtown Indianapolis. It ranks third in the state for desirability, and number two on the Well-Being Index, placing it in the top three best places to live in Indiana. Westfield is known for its Grand Park – an incredibly large youth sports campus. Featuring dozens of outdoor fields and an indoor basketball/volleyball facility, the park hosts many large events. Westfield also outcompetes the Indianapolis metro in education performance, making it a great place for families.

Browse houses for sale in Westfield and check out the Westfield Housing Market Report to see what the housing market’s like in the area.

4. Georgetown, IN

• Population: 3,703
• Mean yearly household income: $112,396
• Median home sold price: $320,000
• Median monthly rental price: $778
• Housing cost-to-income ratio:. 16.0
• Home affordability index: 1.66

Indiana has several Georgetowns, but the one we’re talking about is 14 miles west of Louisville, Kentucky – ZIP code 47122. This small town serves as a bedroom community for Louisville, with nice and affordable homes. This incredibly hilly area features nature unique to most of Indiana. With the nearby Hoosier National Forest, you can easily spend your weekends fishing, hiking and camping.

Browse houses for sale in Georgetown and check out the Georgetown Housing Market Report.

5. Zionsville, IN

• Population: 30,258
• Mean yearly household income: $189,834
• Median home sold price: $625,000
• Median monthly rental price: $1,451
• Housing cost-to-income ratio: 14.6
• Home affordability index: 1.44

Zionsville is another Indianapolis suburb. What sets this place apart is that it ranks number one in the state on the Well-Being Index. That means, in general, the people in Zionsville have better access to health care, economic security and quality food, among other factors. As for attractions, Zionsville has the Sullivan Munce Cultural Center, a genealogy center, art center and museum. It preserves the history of the town and serves as a local resource for artists.

Check out houses for sale in Zionsville and look into the Zionsville Housing Market Report to see what to expect when buying a home in Zionsville.

6. Darmstadt, IN

• Population: 1,284
• Mean yearly household income: $160,131
• Median home sold price: $884,500
• Median monthly rental price: $933
• Housing cost-to-income ratio: 11.0
• Home affordability index: 0.86

Darmstadt, Indiana, is a small town about 10 miles north of Evansville, Indiana. It’s named after the German city and is proud of its German heritage. The town consists of a handful of roads, with Darmstadt Road and W Boonville – New Harmony Road being the major intersection. If you’re looking for spacious homes on large, quiet lots, that’s what brings you to Darmstadt. A short drive away from Evansville means an easy commute home from work, back to your piece of green heaven.

Look up houses for sale in Darmstadt and check out the Darmstadt Housing Market Report.

7. Dyer, IN

• Population: 16,422
• Mean yearly household income: $112,917
• Median home sold price: $692,445
• Median monthly rental price: $1,182
• Housing cost-to-income ratio: 16.0
• Home affordability index: 0.77

Dyer is located in northwest Indiana, on the Indiana/Illinois border. At just over 30 miles outside of downtown Chicago, it makes for a quiet commuter city. The city has seen positive job growth in recent years, with management jobs being the most lucrative. One of the town’s defining features is Meyer’s Castle, a replica of a Scottish castle built by Joseph Ernest Meyer. Once his private residence, the castle is now a special event space and has a reservation-only restaurant.

Browse houses for sale in Dyer and check out the Dyer Housing Market Report.

8. Santa Claus, IN

• Population: 2,718
• Mean yearly household income: $106,268
• Median home sold price: $232,500
• Median monthly rental price: $1,105
• Housing cost-to-income ratio: 14.0
• Home affordability index: 2.16

Santa Claus is a small town in southwestern Indiana, between Evansville and Louisville. As you might suspect, the town carries a Christmas theme, which might not be for everyone. But, if Christmas is your thing, Santa Claus is a great choice. On top of that, the city is the second most desirable by search volume and has the second lowest unemployment rate in the state. If you’re looking for small-town living, Santa Claus has many gorgeous houses on offer.

Browse houses for sale in Santa Claus and check out the Santa Claus Housing Market Report.

9. Westville, IN

• Population: 6,062
• Mean yearly household income: $75,673
• Median home sold price: $474,217
• Median monthly rental price: $723
• Housing cost-to-income ratio: 19.3
• Home affordability index: 0.75

Not to be confused with Westfield (our number three best place to live in Indiana), Westville is a small town in the northwestern corner of the state. As part of the Michigan City/LaPorte metro, Westville is near some cities but is removed from the hustle and bustle. If country roads and large tracts of land are what you’re looking for, that’s what Westville has on offer. The nearby Bluhm County Park offers miles of nature trails and acres of wildflowers.

Browse houses for sale in Westville and check out the Westville Housing Market Report.

10. Greendale, IN

• Population: 4,009
• Mean yearly household income: $68,856
• Median home sold price: $224,950
• Median monthly rental price: $535
• Housing cost-to-income ratio: 20.4
• Home affordability index: 1.45

Greendale sits in southeastern Indiana, on the borders of Ohio and Kentucky. It’s about a 30-minute drive west of Cincinnati, and it has the lowest unemployment rate in the state of Indiana. This small city sits right next to the Ohio River, with plenty of outdoor recreation and natural beauty at your door. With lots of close big city amenities, Greendale makes for a great bedroom community to enjoy peace and quiet, or to raise a family.

Browse houses for sale in Greendale and check out the Greendale Housing Market Report.

3 More Popular Places To Live In Indiana

Now that you’ve seen what we rank as the 10 best places to live in Indiana, let’s cover some other, very popular towns and cities. While these don’t rank with our given methodology, each has something to offer that makes them special.

1. Bloomington, IN

• Population: 80,064
• Mean yearly household income: $62,744
• Median monthly rental price: $988
• Housing cost-to-income ratio: 25.0

Home to Indiana University Bloomington, Bloomington is a hip college town with a lot going for it. A thriving arts scene, as well as college sports, bring a lot of people to Bloomington and keep them engaged. The city also consistently scores high marks for being bike-friendly, thanks to its large array of bike trails throughout the city. Bloomington is home to the Kirkwood Observatory, which holds regular events for the public to stargaze. The city also made our list as one of the best cities to view fall foliage.

Browse houses for sale in Bloomington and check out the Bloomington Housing Market Report.

2. Fishers, IN

• Population: 101,171
• Mean yearly household income: $91,646
• Median monthly rental price: $1,508
• Housing cost-to-income ratio: 23.46

Fishers is a popular suburb of Indianapolis. A city in its own right, Fishers borders the large Geist Reservoir, which offers recreation like water skiing, and yes, fishing. The city has many fairs and events. These include the annual Fishers Renaissance Faire, where attendees dress up as knights and nobles, and a free summer concert series. While it’s a suburb of Indianapolis, Fishers has a lot going for it on its own. It’s easy to see why it’s a popular, growing city.

Browse houses for sale in Fishers and check out the Fishers Housing Market Report.

3. Fort Wayne, IN

• Population: 262,676
• Mean yearly household income: $70,654
• Median monthly rental price: $823
• Housing cost-to-income ratio: 18.02

Fort Wayne is the second-most-populated city in Indiana (behind Indianapolis). Located in northeastern Indiana, Fort Wayne is home to an Indiana University campus and a Purdue University campus, as well as a branch of the Indiana University School of Medicine. The city features many large parks, as well as an extensive recreational trail system. The Foellinger-Freimann Botanical Conservatory is an indoor-outdoor botanical garden. The city has a thriving economy as well, with companies like Sweetwater Sound, Steel Dynamics and North American Van Lines calling the city home.

Browse houses for sale in Fort Wayne and check out the Fort Wayne Housing Market Report.

Tips For Buying A House In One Of The Best Cities To Live In Indiana

If you’re looking to move to one of Indiana’s best cities, there are a few things you should know to be prepared. Indiana has a lot of variety on tap, from busy cities to rolling hills, to flat farmland. Here are some tips you should consider before diving in:

• Choose the right neighborhood: Especially in cities, bordering neighborhoods can vary in what you’re looking for. Do your research on how to choose the right neighborhood when buying a house in Indiana.
• Compare the cost of living: According to MERIC’s 2022 data, Indiana as a whole has the eighth lowest cost of living in the country. However, for more popular areas, costs can be higher. Before house hunting, research and compare the cost of living in your current area to where you want to move.
• Find an experienced real estate agent: An experienced, local real estate agent will know the area and will be able to connect you with the right house. Find a real estate agent who’s familiar with the Indiana neighborhoods you’re considering.
• Visit the area before moving: If you’ve never been to the area you’re considering moving to, visit it to get a feel for it. By physically being there, you can better understand if it’s what you want.
• Get preapproved: If you’re serious about house-hunting, get a mortgage preapproval before putting in an offer on a house in Indiana.

The Bottom Line

Indiana has a lot to offer. It’s unique tapestry of urban and rural communities make it a great place for young professionals, families, and retirees alike. If you’re ready to explore your options in Indiana, start the approval process with Rocket Mortgage^® today.

Methodology: Finding The Best Places To Live In Indiana

Rocket Homes collected and analyzed the most recent data on 12 key local and countywide metrics to give us insight into the top cities best for living. The 350 most populated cities analyzed are home to 65.6% of U.S. residents living in Indiana.

The metrics used in this study include:

• The violent crime rate
• Property crime rate
• Unemployment rate
• Google search volume
• Median rent
• Well-being index
• Median monthly income
• Median monthly housing costs
• Median days on market for homes
• Median home list price
• Freddie Mac primary mortgage market survey interest rates

Some of these metrics were then used to calculate housing cost to income ratio and home affordability index. These metrics were chosen based on public data availability and topical relevance. Metrics from the U.S. Census are based on 2021 ACS 5-year estimates. In one case, county-level data was used because data is not recorded at the local level.

The housing cost-to-income ratio was calculated by taking the median monthly housing costs divided by the median monthly income to get the average percentage of income spent on housing costs in a household.

The home affordability index was calculated using the median listing price for homes in that city, interest rate from Freddie Mac's primary mortgage market survey, and median yearly income. To interpret the indices, a value equal to or greater than 1 means that the average person has enough income to qualify for a mortgage in that area. The calculation assumes a down payment of 20% of the home price and a qualifying ratio of 25%.

Each data category was normalized and transformed into a range of points for scoring and comparison. Cities with violent crime rates greater than or equal to 55 and property crime rates greater than or equal to 65 were removed from the ranking. Weights were then applied to each metric depending on their individual importance in the study. The weighted scores for each metric were summed to create the overall Best Places To Live Score for each city. The final scores are sorted to produce the final rankings.

Other metrics considered without weight: