Rising Cost of Basics Outpaces Inflation in Indiana, United Way Data Shows

New ALICE data shows 39% of Northwest Indiana households can’t afford basics

Across a five-county Northwest Indiana region, some 39% of households in are struggling to afford their basic needs, especially as the cost of essentials has risen over time, new data shows. 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 six basic needs that families need to live and work: housing, childcare, 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, childcare, 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 childcare providers to cashiers to nursing assistants, ALICE workers hold essential jobs that keep our economy running and that we depend on every day.

In Northwest Indiana, 39% of households are struggling to afford their basic needs, ALICE data shows. That’s over one in three households – 114,782 households. 

Statewide, 38% of households – over 1 million households – can’t make ends meet. 

Indiana United Ways 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.  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used as the basis for determining eligibility for public assistance, the ALICE report shows that this official measure is obsolete and underestimates the true extent of financial hardship.

“For too long, traditional poverty measures have underestimated the number of families struggling to make ends meet. The ALICE data tells a more complete story—one that reflects the reality facing many hardworking households throughout Northwest Indiana. While these families may be employed, rising costs for housing, childcare, healthcare, transportation, and food continue to outpace their ability to get ahead. At United Way Northwest Indiana, we use this data to guide our investments, partnerships, and advocacy efforts so that more families can move beyond mere survival toward stability, opportunity, and long-term economic mobility,” stated Chris White, President and CEO, United Way Northwest Indiana. “ALICE families are the backbone of our communities — the caregivers and essential workers we rely on every day, yet too many face barriers to financial stability despite their hard work.  United Way is committed to elevating the needs of ALICE families and using this data to mobilize resources and expand opportunity.”

ALICE data shows that the minimum cost for a single adult 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.  That number increases to $81,336 in Lake County and $83,076 in Porter County.

Data from the report shows that in United Way Northwest Indiana’s five-county service area of Lake, Porter, Jasper, Newton and Starke counties: 

• 27% of households fall below the ALICE threshold but above the Federal Poverty Level, and 12% of households fall below the Federal Poverty Level.
• Starke County has the highest percentage of households below ALICE at 42%, followed by Lake County at 41%.
• Lake County has the highest number of households below ALICE with 82,388 households, followed by Porter County with 22,395 households
• Racial disparities persist across United Way Northwest Indiana’s region, with 57% of Black households and 41% 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.  

CLICK TO READ: 2026 ALICE REPORT