More households in Indiana are struggling to make ends meet as the cost of household necessities continues to outpace inflation for over a decade, new data from United Way shows.
The State of ALICE report provides 2024 information that reveals growing financial strains on households in poverty and ALICE (Asset Limited, Income Constrained, Employed). Because these households earn above the federal poverty level, they often don’t qualify for assistance. But they still don’t make enough to afford basic expenses, such as housing, childcare, food, transportation, healthcare and technology.
The ALICE Essentials Index tracks these rising costs. Between 2007 and 2024, the index for Indiana increased by over 61 percent. The Consumer Price Index, which reflects inflation across over 200 categories of goods and services, has increased 52 percent in that time.
ALICE data show that in Central Indiana, about 35 percent of households are struggling to afford basic needs. That’s just over 257,000 households. Statewide, 38 percent of families, or over one million households, can’t make ends meet.
In Monroe County in 2024, about 22 percent of households fall in the ALICE category; the state average is 26 percent. And about 19 percent of households in the county live in poverty, seven percent more than the state average of 12 percent.
A total of 41 percent of households in Monroe County live below the ALICE threshold.
Randy Rogers, president and CEO of United Way of South Central Indiana, said the challenges these families face continue to be exacerbated by rising housing costs. In the last 10 years, the median home price has increased 100.2 percent in Indiana.
Rogers said higher living costs may force families to spend more than 30 percent of their income on housing, which is the typical recommended amount for housing.
“They're spending more than 30 percent on housing, or they are having to seek housing outside of Bloomington proper, which then creates larger challenges with transportation costs and transportation expense, gas expense, and or other related items that might they might have to look at childcare in a different location,” he said. “Those are all factors that in Monroe County make it really, really difficult.”
With fewer healthcare providers in the area, especially in rural communities, Rogers said more people may use the emergency room or drive longer distances to make it to an appointment. And with some of Bloomington’s major employers cutting jobs, such as Novo Nordisk and GE, it may be harder for these families to find employment.
Rogers said the biggest challenge for ALICE households is major unexpected events for which they have no savings.
“They're making decisions that are challenging for their family,” he said. “Do we put food on the table this week? Do we pay our utility bill, or our son or daughter may need to get ready for school, and do they have a new pair of shoes? Or do they even have the right backpack, the right whatever they need for school at that point in time.”
Data shows that about 55 percent of Black households and 46 percent of American-Indian/Alaska Native households were below the ALICE threshold. And about 72 percent of female-led single-family homes and 49 percent of single-male-headed homes are below the ALICE threshold.
Michael Budd, President and CEO of Indiana United Ways, said one way to help struggling households is to look at state policies, which could provide more assistance. He also said it’s important for employers to have grace and help support those who may be struggling.
“Employers can think about, how do we help folks navigate some of these things,” Budd said. “Obviously, salary is an easy thing to say, but, but maybe there's a little flexibility around childcare issues, or there's flexibility when something happens with a car repair, or something. There are things that we can do that are non-monetary things too, to help families get through the difficult aspects of this.”
