Carmel, IN vs. Greenwood, IN: Cost of Living Comparison (2025)
Which Indianapolis suburb gives you more bang for your buck – Carmel or Greenwood? This article provides a detailed cost of living comparison to help families relocating to the Indy area, professionals choosing between job offers, or anyone curious about the real-life expenses of calling Carmel or Greenwood home in 2025.
1. Housing Costs
Housing is typically the biggest factor in cost of living. Here’s how Carmel and Greenwood stack up:
| Housing Type | Carmel | Greenwood |
|---|---|---|
| Median 2BR Apartment Rent | $1,450 | $1,150 |
| Median 3BR House Price | $450,000 | $325,000 |
🏆 Winner: Greenwood. Renters and buyers can expect to pay about 20-25% less for housing in Greenwood compared to Carmel.
2. Utilities and Energy Costs
Utility bills are a significant monthly expense. In Carmel, expect to pay around $180 per month for electricity, gas, water, and trash. Costs are about 10% lower in Greenwood, averaging $160 monthly.
Both cities experience cold winters and hot summers, so budget for higher heating and A/C bills seasonally. Carmel and Greenwood offer budget billing to help even out utility costs.
🏆 Winner: Greenwood, but the difference is minor. Utility costs are comparable in both cities.
3. Groceries and Daily Expenses
Grocery prices are very similar between Carmel and Greenwood. Expect to spend around $350-$450 per month on food and household basics for a single person, or $900+ for a family of four.
Eating out is about 15% pricier in Carmel. A meal for two averages $60 at a mid-range Carmel restaurant vs. $50 in Greenwood.
🏆 Winner: Greenwood. Groceries cost about the same, but dining out is notably cheaper in Greenwood.
4. Taxes and Fees
Both Carmel and Greenwood have a 7% sales tax rate. However, property taxes are higher in Carmel – 0.95% vs. 0.82% in Greenwood.
Carmel also has more neighborhoods with HOA fees, which can add $100-$500+ to monthly housing costs. Greenwood has fewer HOAs and lower average dues.
🏆 Winner: Greenwood. Lower property tax and fewer HOAs give Greenwood the edge.
5. Cost Summary
| Expense | Carmel | Greenwood |
|---|---|---|
| Housing (3BR house) | $1,875 | $1,350 |
| Utilities | $180 | $160 |
| Groceries | $400 | $400 |
| Transportation | $300 | $250 |
| Taxes (property) | $356 | $222 |
| Misc | $500 | $400 |
| Estimated Monthly Total | $3,611 | $2,782 |
Figures are estimates based on a 3BR home for a family of four. Your actual costs may vary.
6. Lifestyle Fit
Carmel has a denser suburban feel with more walkable areas and shorter commutes to downtown Indianapolis. It also has excellent schools and low crime rates. But that comes at a cost – literally.
Greenwood offers more affordable housing, especially for families who want extra space. Commutes to Indy are longer, but still reasonable. Greenwood gets about 5 inches more snow annually than Carmel.
Ultimately, Carmel is ideal for high earners who prioritize location and don’t mind paying a premium. Greenwood appeals to families and professionals seeking more house for their money.
7. FAQs
Q: Is Carmel more expensive than Greenwood?
A: Yes, the cost of living is about 20% higher in Carmel compared to Greenwood, mainly due to housing prices.
Q: Which city has cheaper rent, Carmel or Greenwood?
A: Greenwood has lower rent, with prices around 20% less than comparable apartments in Carmel.
Q: Is it cheaper to buy a house in Carmel or Greenwood?
A: Greenwood is more affordable for homebuyers. The median price for a 3BR house is about $325,000 in Greenwood vs. $450,000 in Carmel.
8. Conclusion
While both Carmel and Greenwood offer a high quality of life, Greenwood is the clear winner on cost of living. Housing is the biggest difference, with prices around 20-25% lower in Greenwood.
Carmel remains a great choice for those willing to pay more to be closer to Indianapolis and top amenities. But most people will find their money goes further in Greenwood.
Of course, cost is just one factor in choosing where to live. Be sure to visit both cities to get a feel for the vibe and compare moving company costs once you’ve made a decision.
Want to dig deeper into the numbers? Check out our guides on monthly expenses and cost of living in Carmel for more insights.