Marion County's population continues to shrink as suburbs rapidly grow

More people left Marion County last year than anywhere else in the state, but continued suburban growth has pushed the Indianapolis metropolitan area's estimated population to nearly 2.14 million people, according to new U.S. Census data.

The Indianapolis metropolitan area has now grown by 2.3% since 2020, which is more than twice the national average.

The state's most populous county now sits at an estimated 968,460 people, having declined incrementally for three years in a row. Marion County was home to around 977,202 residents in 2020, the Census reported.

However, an analysis from the Indiana Business Research Center at the Indiana University Kelley School of Business points out that all of Indiana's six fastest-growing counties are included in the Indianapolis metro area: Hancock (3.7% increase), Boone (2.4%), Hendricks (1.8%), Morgan (1.3%) and Johnson (1.3%).

The suburban "doughnut" counties have all increased in population every year since 2020 except for Morgan, which saw a population drop of just 15 estimated residents from 2021 to 2022.

Hamilton County saw the biggest population increase by raw numbers in 2023, growing from 365,463 estimated residents in 2022 to 371,645 in 2023.

Because of the continued spike in suburban migration, the metro area as a whole grew by 17,807 people.

Marion's drop of 763 residents, or 0.1%, gave it the largest population decline in the state for the third straight year.

Matt Kinghorn, senior demographer at the Indiana Business Research Center, said the reduction in large-city dwellers is not unique to Indiana, as Chicago, Louisville and St. Louis have also seen residents push out into suburbs and even beyond into rural areas.

"Migration plays a big role, as does the state of the housing market," Kinghorn said. "There's been an exceptionally tight supply of (Marion County) housing in recent years, as well as a sharp increase in cost. People are thinking about living in communities that they haven't considered in the past."

He also believes changes to working habits play a role in migration into the suburbs. More remote and hybrid working situations mean more freedom in where to live.

Even after the drop, Marion County still ranks as the country's 54th most populous county, while the Indianapolis metro area ranks 34th in the nation.

Kinghorn cited Madison County as a particularly interesting case. Its population had been declining for several decades before a sharp increase in the last few years, in part due to the migration out of Marion County.

Overall, Indiana grew by 29,925 residents to a total estimated population of 6.86 million.

According to IU, the population of the state's 23 rural counties also slightly increased in 2023, while the population of the Elkhart-Goshen, Bloomington and Michigan City metropolitan areas declined.

“Indiana’s growth was fueled by another year of exceptionally high net in-migration,” Kinghorn said. “The state had a net inflow of nearly 22,500 residents last year, which is the third consecutive year this measure topped the 20,000-residents mark. For context, we estimate the state had an average net in-migration of 9,100 people per year last decade.”

Rory Appleton is a reporter at IndyStar. Contact him at rappleton@indystar.com or follow him on X, formerly Twitter, at @RoryEHAppleton.

This article originally appeared on Indianapolis Star: Marion County's population shrunk further in 2023