Please note: These data are from two sources. The Indiana Business Research Center has a smaller margin of error but the data are older. The American Community Survey's margin of error is wider, but the data are more recent.

The incomes of Indianapolis households are lower than those of households in other Midwestern cities. Indianapolis had a median income of $41,947 in 2006. That puts Indianapolis eighth among 11 similar cities.

It is interesting to compare values in the table to the right. Just as we’re curious to know how much money a neighbor or co-worker makes, we like to compare our aggregated incomes to those of people in other cities. Knowing a little about each city helps to tell the story. Pittsburgh and Detroit have suffered from the decline of a major hometown industry. Cleveland, Milwaukee and Indianapolis have felt the pinch of industrial change and are working their way into the future. The leading cities – Minneapolis, St. Louis, Grand Rapids and Columbus – are cities that rely more heavily on new industries. 

Incomes alone do not tell the story. Incomes vary from place to place, but so do costs. The extra income people earn in some places may not be enough to offset the higher costs, so they have less buying power despite a higher income.