Indiana State Representative Lonnie Randolph (D-East Chicago) is raising red flags over what he calls a deepening housing crisis in Indiana, following the release of a new report by Prosperity Indiana and the National Low Income Housing Coalition. The report, Out of Reach 2025, paints a stark picture of the state’s affordability gap—and confirms that for many working Hoosiers, the dream of securing a safe, decent home is slipping further away.
According to the report, a full-time worker in Indiana must earn $22.18 an hour to afford a modest two-bedroom apartment without spending more than 30 percent of their income on rent. Yet the average renter in Indiana earns only $18.05 an hour—a shortfall that underscores growing income disparities in the state. Randolph said the figures validate concerns his caucus has raised for years.
“This is not just about economics—it’s about dignity,” said Randolph. “You can’t call Indiana a great place to live when hundreds of thousands of hard-working people can’t afford a place to live.”
The disparity is particularly alarming when considering the broader job market. Of the 20 most common occupations in Indiana, two-thirds do not pay enough to meet the required housing wage. And for those earning minimum wage—$7.25 per hour in Indiana, which has not increased in over a decade—the situation is even more dire. A minimum wage earner would need to work 122 hours per week—the equivalent of 17 hours a day, seven days a week—just to afford a modest two-bedroom apartment.
Randolph called that reality “a moral failure.”
The Out of Reach report also ranked Indiana last in the Midwest for renter wages, putting it behind neighboring states like Illinois, Ohio, and Michigan. As rents continue to climb and wages remain stagnant, many Hoosiers are being forced to choose between rent and other basic necessities, such as food, medicine, or transportation.
“Families are falling behind not because they don’t work hard, but because the economy is stacked against them,” said Randolph.
The report confirms that more than 800,000 Hoosiers are stuck in low-wage jobs that fail to provide enough income to cover basic housing costs. This issue extends beyond cities into suburban and rural communities, disproving the notion that housing insecurity is limited to urban areas.
“We have Hoosiers working two and three jobs and still facing eviction notices,” Randolph added. “That is unacceptable.”
During the most recent legislative session, Randolph and other Democratic lawmakers pushed for several measures aimed at addressing Indiana’s growing housing affordability gap. Among the proposals were:
• Raising the state minimum wage to a livable standard;
• Expanding funding for affordable housing developments;
• Implementing safeguards against out-of-state investors who purchase local properties and hike rents;
• Protecting key federal housing assistance programs, such as Section 8 and the Low-Income Housing Tax Credit.
However, many of these proposals failed to gain traction in the Republican-led legislature.
“We warned this would happen,” Randolph said. “We said renters were being overlooked, and now this report shows just how dangerously wide the gap has become.”
He added that without bold action, the crisis will only deepen, leading to increased homelessness, declining public health, and disrupted education for children forced to move from school to school.
National housing experts agree. The National Low Income Housing Coalition describes housing as a “foundation for success in all areas of life,” linking stable housing to improved mental and physical health, better educational outcomes, and more stable employment.
So who is Indiana working for?
Randolph and others argue that current policies favor corporate landlords, real estate investors, and higher-income earners, while leaving working-class families, single parents, and young professionals to fend for themselves.
“If you’re a wealthy investor, Indiana may seem like a great place to do business,” Randolph said. “But for teachers, grocery workers, nursing assistants, and custodians—the very people who keep this state running—it’s a different story.”
The report’s release comes as rental costs continue to rise across the state. According to Apartment List and Zillow, rents in Indiana’s largest cities—including Indianapolis, Fort Wayne, and Gary—have steadily increased by 4 to 7 percent annually over the past three years, far outpacing wage growth. The demand for affordable units is also outstripping supply. In some communities, waitlists for public housing or housing vouchers stretch months or even years.
Randolph said the long-term cost of ignoring the issue will be steep.
“When rent eats up someone’s entire paycheck, they’re not spending in local stores. They’re not saving for their kids’ education or planning for retirement. That drags down the entire economy.”
He emphasized that housing is not just a social justice issue—it’s an economic imperative.
“Indiana must do better,” Randolph concluded. “We need policies that work for all Hoosiers—not just the ones at the top.”
As Indiana continues to promote itself as an affordable and business-friendly state, Randolph and housing advocates say it’s time to ask: affordable for whom? Without intervention, they warn, the state’s most vulnerable residents will continue to fall through the cracks.
For more information on the “Out of Reach 2025” report, visit www.nlihc.org or www.prosperityindiana.org.