When you drive through the brick-lined streets of downtown Salem, you aren't thinking about a spreadsheet. You're probably looking at the Washington County Courthouse or maybe grabbing a coffee. But honestly, the population of Salem Indiana is doing something kinda interesting right now. It's not exploding like a tech hub, and it's not a ghost town. It’s basically holding its own in a way that most small Midwest towns aren’t.
Right now, in 2026, the official numbers for Salem are hovering right around 6,463 people.
If you look at the 2020 Census, the city had about 6,371 residents. So, we've seen a tiny bit of growth, but it’s mostly just steady. It’s the kind of place where you’ve likely seen the same faces at the grocery store for the last decade, yet there’s just enough "new" to keep the lights on and the schools full.
Breaking Down the Population of Salem Indiana
Most people assume small towns are shrinking. That’s the narrative, right? Everyone moves to Indianapolis or Louisville. But Salem is a bit of an outlier because it’s the county seat. It's the "big city" for the rest of Washington County.
While the city itself stays around that 6,400 mark, the surrounding county is pushing toward 28,657 people. This matters because Salem is the hub for all those folks. They work here, they shop here, and they use the local infrastructure.
The Age Gap and Why It Matters
Honestly, Salem is getting older. The median age is roughly 40.9 years.
About 20% of the people living here are over the age of 65. That’s a huge chunk of the population. On the flip side, only about 3.1% of residents are under the age of five. You don't need to be a math genius to see the lopsidedness there.
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- Under 18: 20.4%
- Over 65: 20.0%
- The "In-Betweeners": The rest of the workforce.
When you have a 1:1 ratio of kids to retirees, the community starts to shift. You see more healthcare facilities popping up and maybe fewer daycare centers. It changes the "vibe" of the town.
Economy, Income, and Staying Put
The median household income in Salem is around $51,786. Compare that to the national average, and yeah, it looks a bit low. But then you look at the rent. Median gross rent is roughly $736. You can’t even find a parking spot for that price in a big city.
People stay in Salem because they can afford to. About 74% of people own their homes here. That’s a massive "ownership" rate. When people own their dirt, they don't leave. They're invested.
There is a bit of a struggle, though. The poverty rate in the city limits is high—nearly 26%. It’s a stark contrast to the rest of Washington County, where the poverty rate is closer to 13%. This tells us that while the town is stable, there’s a concentrated group of people who are really feeling the squeeze of 2026 inflation.
Diversity (or Lack Thereof)
If you're looking for a melting pot, Salem isn't exactly it. The population is about 95.1% White.
The Hispanic or Latino community makes up about 2.2%, and people identifying as "Two or More Races" are at 4%. It’s a very traditional, homogenous Indiana town. For most residents, that’s part of the draw—the predictability and the shared history.
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What's Changing for the Population of Salem Indiana?
The Salem Municipal Airport is actually one of the biggest "population movers" right now, believe it or not. They’ve been working on a massive runway extension to 5,000 feet. The goal? Attract corporate jets and small industries that want to escape the crowded Louisville airspace.
If you can get more businesses to land at the airport (literally), you get more high-paying jobs. More jobs mean more young families. More young families mean the population doesn't just "stay steady"—it actually starts to get younger.
Infrastructure Growth
Salem isn't just sitting still. The city has been pushing for "shovel-ready" sites, particularly the J.F. Helsel Commerce Park. They've got the fiber internet, the water, and the sewer lines ready to go.
It’s a gamble. But it’s a smart one. They are betting that the "work from home" or "work from anywhere" crowd will eventually get tired of the city and want a 2.37-person household (the local average) in a town where people actually know your name.
Reality Check: What the Numbers Don't Say
Statistics are great, but they're sorta cold. They don't tell you about the 27.2-minute average commute. That's a long time for a "small town." It means a lot of the people making up the population of Salem Indiana are actually driving out to Clarksville, New Albany, or even over the bridge to Kentucky every morning.
Salem is a "bedroom community" with a "county seat" soul.
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The town is also remarkably "disconnected" in some ways. About 15% of households still don't have a broadband internet subscription. In 2026, that’s a hurdle for education and remote work. Improving that single number might do more for the population growth than any runway extension ever could.
Actionable Steps for Navigating Salem's Growth
If you are looking to move here or invest in the area, you need to look past the top-line population number.
First, check the school enrollment trends. The 2024/2025 school year saw about 3,847 students in the county system. If that number starts to tick up, you know the "young family" influx is real.
Second, monitor the airport completion. The expansion project is slated to finish by December 2026. Keep an eye on any new hangar leases; that’s the leading indicator for new business arrivals.
Third, look at the housing market. With a 74% homeownership rate, inventory is always tight. If you see new residential developments breaking ground near the bypass, that's your sign that the population is ready to jump from 6,400 to 7,000.
Ultimately, Salem is a study in stability. It’s a place that refuses to disappear, even when the world around it moves faster and faster every year. It’s slow-growing, slightly aging, but incredibly rooted.