Older Americans Feel Less Inflation Pain, and That Could Shape the Midterms
Seniors are more insulated from the affordability crunch than younger households, economists say, a divide that may influence how voters turn out in November.
At a glance
- Older Americans face lower inflation rates than younger generations, with baby boomers seeing about 31.5% cumulative price growth from 2019 to 2026.
- Millennials experienced the highest inflation at 33.3%, followed by Gen Z at 32.7%, according to Moody's analysis.
- Seniors benefit from homeownership, Social Security COLAs, and less exposure to childcare and mortgage costs.
Older Americans are feeling less financial strain from inflation than younger households, a generational divide that economists and political experts say could influence the upcoming midterm elections.
"Affordability is the central issue in the forthcoming midterm elections," said William Galston, a senior fellow at the Brookings Institution. "Nothing else is close." He added, "Who's feeling these pressures the least? Seniors."
Seniors still face rising costs for food, gasoline and electricity, but they are less exposed to some of the fastest-rising expenses. In aggregate, they disproportionately own their homes, drive fewer miles and keep cars longer, and most no longer pay for childcare. Their Social Security income is also protected by cost-of-living adjustments; the Social Security Administration announced a 3.6% boost for 2027.
Data shows a generational gap
Mark Zandi, chief economist at Moody's, analyzed Bureau of Labor Statistics data for CNBC and found that baby boomers and older generations saw the lowest increase in consumer prices from January 2019 through August 2026. Their cumulative price change was about 31.5%. Millennials saw the highest, at 33.3%, followed by Generation Z at 32.7%.
"Young people are definitely suffering higher rates of inflation than older Americans," Zandi said. He added that younger Americans may turn out to vote in greater numbers, a dynamic that should favor Democrats.
A Reuters/Ipsos poll published last week found 78% of Americans said the White House shares blame for higher costs, including 64% of Republicans, 76% of independents and 95% of Democrats. The poll surveyed 4,506 U.S. adults with a margin of error of plus or minus 1.5 percentage points.
Housing costs largely explain the divide. In 2025, the monthly payment for a 30-year fixed-rate mortgage was about 33% of the median family's income, an all-time high, according to the Federal Reserve's Survey of Consumer Finances. Average 30-year mortgage rates were 7.4% the week of Oct. 15, the highest in about three years.
Between 2019 and 2024, the inflation-adjusted median home value rose 30%, while median household income for households headed by those under 40 rose only 9%, according to the Pew Research Center.
Wealth trends also diverge. The Fed survey found that families headed by those younger than 35 saw median net worth fall 23% to $33,000 from 2022 to 2025, while families headed by those 75 and older saw it rise 37% to about $505,000.
Seniors still face health costs
Seniors spend more of their income on healthcare. Medicare Part B premiums are expected to rise to $209.50 per month in 2027, up more than 3% from $202.90 in 2026, according to the Medicare Board of Trustees.
White House spokesperson Matthew Middleton said President Donald Trump has delivered "tangible wins," including a tax-cut package that reduced taxes for retirees and workers who get tips and overtime pay, and is "delivering on his promise" to stop inflation and raise economic growth.
Source: CNBC Top News.
Questions and answers
- Why are older Americans less affected by inflation?
- They are more likely to own homes, drive fewer miles, and receive Social Security with cost-of-living adjustments, reducing exposure to rising mortgage, gas, and childcare costs.
- How could the affordability crunch affect the midterm elections?
- Younger voters facing higher inflation may turn out in greater numbers, potentially favoring Democrats, while affordability remains a central issue for all voters.
- What did the Reuters/Ipsos poll find about blame for higher costs?
- 78% of Americans said the White House shares blame for higher costs, including 64% of Republicans, 76% of independents, and 95% of Democrats.
