Indiana's early settlers were predominantly northern Europeans who migrated from eastern and southern states. The influx of immigrants to the US in the late 19th and early 20th centuries had little impact on Indiana. In 1860, only 9% of the state's population was foreign-born, mostly Germans and Irish. The percentage was only 5.6% in 1900 and had further declined to 5.2% by 1920, and to just 1.7% by 1990. The principal migratory pattern since 1920 has been within the state, from the farms to the cities.
In 1860, more than 91% of the population lived in rural areas; the percentage fell to 67% in 1900, 50% in 1920, and 40% in 1960. In 1990, 65% of the population was urban, and only 35% was rural.
Since World War II, Indiana has lost population through a growing migratory movement to other states, mostly to Florida and the Southwest. From 1960 to 1970, Indiana suffered a net loss of about 16,000 persons through migration, and from 1970 to 1983, a net total of 340,000 left the state. From 1985 to 1990, however, there was a net gain in migration of over 35,000, 90% of whom came from abroad. Between 1990 and 1998, the state had a net gain of 76,000 persons through domestic migration and a net gain of 25,000 in international migration. In 1998, 3,981 foreign immigrants arrived in Indiana. Between 1990 and 1998, the state's overall population increased 6.4%. In the period 1995–2000, 451,397 people moved into the state and 429,772 moved out, for a net gain of 21,625, many of whom came from Illinois.