Lawrence is considered moderately affordable in 2025, with average rent for a 2-bedroom apartment at $1,250 and slightly lower utility and grocery costs compared to the national average.
Living in Lawrence, IN in 2025 costs around $3,200 per month in gross income for a single person to live comfortably, covering housing, utilities, groceries, and typical lifestyle expenses. For a family of four, a gross monthly income closer to $5,800 allows for a middle-class lifestyle in this Indianapolis suburb.
Housing Costs in Lawrence
Housing is the biggest factor in the cost of living in Lawrence. Typical housing options include single-family homes, townhouses, and apartments. Prices vary based on neighborhood, size, and property type:
- Renting a 2-bedroom apartment ranges from $1,100 to $1,400 per month, with an average around $1,250.
- Buying a 3-bedroom single-family home typically costs between $250,000 to $350,000, with a median price near $300,000.
Some of the more affordable neighborhoods for renting include Brookhaven and Oaklandon. For home buyers, the Fort Harrison Hills and Indian Lake areas offer a mix of older and newer homes at relatively moderate prices for the area.
Many neighborhoods have homeowners associations (HOAs), which can add $100 to $300 per month in fees. However, these are more common in newer developments and are optional in many parts of Lawrence.
Utility Costs
Basic utility costs in Lawrence are generally in line with or slightly below the national average. Expect the following monthly costs:
| Utility | Typical Monthly Cost |
|---|---|
| Electricity | $100 – $150 |
| Natural Gas | $50 – $80 |
| Water/Sewer/Trash | $60 – $90 |
| Internet | $50 – $80 |
Electricity costs may spike in the summer months due to air conditioning needs. Enrolling in budget billing plans can help even out costs throughout the year.
Groceries and Food
Food costs in Lawrence are fairly affordable. Groceries for a single person average around $300 to $400 per month, while a family of four should budget closer to $800 to $1,000.
A typical basket of goods, including milk, bread, eggs, produce, and meat, costs about 5% less than the national average. Dining out at a mid-range restaurant for two people averages $40 to $60, in line with costs in the greater Indianapolis area.
Taxes and Fees
Lawrence residents pay several state and local taxes:
- Indiana state income tax rate of 3.23%
- Marion County income tax rate of 2.02%
- Sales tax rate of 7% on most goods
- Average effective property tax rate of 1.1% of home value
Vehicle owners must also pay annual registration fees, which vary based on the type and age of the vehicle but typically range from $100 to $200 per year for passenger cars.
Monthly Cost of Living Comparison
| Household | Gross Monthly Income |
|---|---|
| Single person | $3,200 |
| Couple | $4,500 |
| Family of four | $5,800 |
These figures represent a comfortable middle-class lifestyle in Lawrence, covering housing, utilities, groceries, dining out, and typical entertainment costs. Budgets may be lower for more frugal households or higher for those with more expensive tastes.
Lifestyle Factors
Lawrence offers a suburban lifestyle with relatively easy access to downtown Indianapolis. Commute times average 25 to 35 minutes, which is slightly better than the U.S. average.
Homes in Lawrence are generally more spacious and affordable compared to neighborhoods closer to the city center. Many parts of Lawrence have a small-town feel, with ample parks, trails, and community events.
Residents can enjoy lower costs on things like utilities and groceries compared to the heart of Indianapolis. However, those working downtown may face higher transportation costs. Overall, Lawrence offers a good balance of affordability and access for those looking to live in the Indianapolis area.
Frequently Asked Questions
- What salary do you need to live in Lawrence?
A gross income of at least $3,200 per month for a single person or $5,800 for a family of four allows for a comfortable middle-class lifestyle. - Is Lawrence cheaper than Indianapolis?
Yes, the cost of living in Lawrence is generally 5-10% lower than in Indianapolis proper, especially for housing. - What is the average rent in Lawrence?
As of 2025, the average rent for a 2-bedroom apartment in Lawrence is around $1,250 per month. - How much are property taxes in Lawrence?
The average effective property tax rate in Lawrence is 1.1% of home value per year. - What are the best neighborhoods in Lawrence for affordability?
Brookhaven and Oaklandon offer some of the most affordable rents, while Fort Harrison Hills and Indian Lake provide good value for home buyers. - How do I budget for a move to Lawrence?
Aim for a gross income at least 3 times your expected rent, and budget for Indiana income taxes, utilities, groceries, and any moving company costs. - What’s the job market like in Lawrence?
Lawrence has a diverse economy with jobs in healthcare, education, retail, and service industries. Many residents also commute to Indianapolis for work.