Side-by-side cost of living comparison for 2026
5% cheaper
Birmingham is 5% more affordable than Indianapolis. A $75,000 salary in Indianapolis is equivalent to $70,924 in Birmingham.
Index values shown. National average = 100. Lower is cheaper.
To maintain the same standard of living:
See exact take-home pay: Alabama salaries · Indiana salaries
Housing is typically the biggest factor in any cost-of-living comparison. Birmingham has a housing index of 67 while Indianapolis sits at 80 (national average = 100). The median home in Birmingham costs $165,000 compared to $220,000 in Indianapolis, a difference of $55,000. Monthly rent follows a similar pattern: $1,000 in Birmingham versus $1,100 in Indianapolis.
Groceries and everyday expenses show a narrower gap: Birmingham scores 96 while Indianapolis scores 98. Both cities are close to the national average for grocery costs.
Healthcare costs in Birmingham (91) are lower than Indianapolis (96).
Median household income in Birmingham is $38,178 compared to $49,968 in Indianapolis. When adjusted for cost of living, income goes further in Birmingham.
Amazon affiliate links