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Limited seats available, first come first served. Let us journey together toward a sustainable future! [Click to register] Key points: The burden of living costs is a central issue in the upcoming midterm elections. Economists and political experts say not all households feel the financial pressure of high inflation. Economists say older people are hit less hard by inflation. Compared with younger groups such as millennials, they have less exposure to housing prices, mortgage payments, and childcare expenses. On June 30, 2026, in Fuquay-Varina, North Carolina, a volunteer sorts donated supplies at the Fuquay-Varina emergency food pantry. Housing affordability is a major central issue in the upcoming elections. But economists and political experts point out that the cost pressures borne by different households are not equal, which will affect how voters lean in November. Experts say that, specifically, older Americans are more resilient in the face of the cost-of-living crisis than younger households such as millennials. William Galston, a senior fellow and chair in governance studies at the Brookings Institution, said: "The cost of living is the core issue of this midterm election; no other issue compares." "Which group feels the least pressure? Older people."
Why older people are "doing relatively well"
Of course, this does not mean that the 65-and-older group is completely unaffected by inflation. Economists say that, like everyone else, they also pay higher prices when buying food, gasoline, electricity, and other goods. At the same time, not all young families face severe living pressure. But overall, economists explain: most older people own their homes and are less likely to be first-time homebuyers, so they are less affected by soaring mortgage rates and rising home prices. They usually drive fewer miles and keep their vehicles longer, so they are less sensitive to high gasoline prices and the bond-market fluctuations that push up auto loan yields. Most older people also do not need to bear childcare expenses, while the cost of childcare has risen sharply in recent years. In addition, Social Security benefits — an important source of income for retirees — hedge against inflation through cost-of-living adjustments (COLA). The Social Security Administration announced on Wednesday the increase in Social Security benefits for 2027. Galston said: "Taken together, especially for those over 75, their situation is still relatively good compared with other groups in the United States. And those under the greatest pressure are young families aged 30 to 45."
Young people are more likely to feel disillusioned
Financial data confirm this generational divide. Moody's chief economist Mark Zandi conducted an analysis: from January 2019 to August 2026, baby boomers, as well as the older silent generation and greatest generation, experienced the lowest increase in consumer prices. Zandi used Bureau of Labor Statistics data to construct weighted consumer price indexes by generation. The calculations show that older groups saw cumulative price increases of about 31.5% during this period. By comparison, millennials had the highest cumulative price increase among all groups, at 33.3%, nearly 2 percentage points higher than older groups; the youngest adult group, Gen Z, saw an increase of 32.7%, ranking second. Zandi said: "The inflation pressure facing young people is clearly higher than that facing older people, and the data show this very clearly." "Young people bear the highest inflation and are arguably the most likely to feel disillusioned, so their voter turnout may be higher, a trend that favors Democrats." A Reuters/Ipsos poll released last week showed that 78% of Americans believe the White House should bear responsibility for rising prices; this includes 64% of Republicans, 76% of independents, and 95% of Democrats. The survey interviewed 4,506 U.S. adults, with a margin of error of plus or minus 1.5 percentage points. Michael Reid, head of U.S. economics at Royal Bank of Canada, said: "When people feel financially stretched, they expect those in power to come up with solutions. Some voters will choose to vote, hoping to treat the opposition party as the solution." The nonpartisan election analysis of the Cook Political Report predicts that Republicans are expected to retain their House majority, while the battle for the Senate majority is highly uncertain. White House spokesperson Matthew Middleton said by email that President Trump has delivered tangible results for the American people, including signing a large tax-cut bill that reduces taxes for retirees and for workers who receive tips and overtime pay. He wrote that Trump is keeping his promises: curbing inflation, boosting economic growth, and creating jobs, with more measures to come over the next two years.
Housing costs squeeze young Americans
Zandi said that housing accounts for a higher share of young people's budgets, and this is also the core reason for the divergence in living burdens between generations. Data show that housing affordability continues to decline. The Federal Reserve's Survey of Consumer Finances (SCF) released last week showed that in 2025, the monthly payment on a 30-year fixed-rate mortgage accounted for about 33% of median household income, a record high, up from 26% in 2022. The Fed publishes the SCF report every three years, and the report noted that this 7 percentage point increase mainly came from higher interest rates, and partly from higher home prices. Freddie Mac data: in the week of October 15, the average rate on a 30-year fixed mortgage was 7.4%, a three-year high since November 2023, and above about 6.3% a year earlier. Freddie Mac data show that, apart from the special post-pandemic period, current mortgage rates are in a high range not seen since 2000. At the same time, home price growth has significantly outpaced wage growth. Data from the nonpartisan nonprofit research organization Pew Research Center: from 2019 to 2024, the inflation-adjusted median home price rose 30%, from $269,600 to $350,000; while inflation-adjusted median household income for households headed by people under 40 rose only 9%, from $92,700 to $100,900. Pew Research said the last time the home price-to-income ratio for young people reached the current level was during the mid-2000s real estate bubble.
Childcare costs further intensify living pressure
Galston of the Brookings Institution said childcare costs have risen far faster than overall inflation. A report released by the Bank of America Institute in October 2025 showed that childcare spending grew 1.5 times as fast as overall U.S. inflation. U.S. Department of Labor data for 2024 show that full-time care for one child can account for 9%-16% of median annual household income, and in some areas childcare costs even exceed rent. Galston said families can resist inflation through consumption substitution, such as replacing beef with chicken. But families planning to buy a home and needing childcare can hardly avoid such rigid expenses.
Young families see wealth shrink, older families see wealth grow
The Fed's SCF report showed that from 2022 to 2025, the youngest households saw their wealth shrink sharply, while older households saw wealth rise substantially. The survey showed that median net worth for households headed by people under 35 fell 23%, to $33,000; median net worth for households headed by people 75 and older rose 37%, to about $505,000. Since 2023, stock market gains have been driven mainly by the AI boom, and such assets are mostly held by older households, helping boost the wealth of older groups. Fed data show that net worth growth for older groups has far outpaced that of younger generations, and their net worth is now close to or even above that of households nearing retirement or recently retired, which is completely different from the results of previous survey rounds. Reid of Royal Bank of Canada said older households can rely on wealth growth to support consumption. A report released last month by the JPMorgan Chase Institute: more and more Americans are starting to use funds from investment accounts for daily consumption. After analyzing more than 20 million anonymous Chase checking accounts, the report found that in 2025, more than 37% of high-income retirees (65 and older, top 10% of income) withdrew funds on net from investment accounts for consumption, up from 24.5% in 2019; such withdrawals accounted for 15% of total spending by retirees, up from 8% in 2019. "In terms of net worth, younger generations are clearly worse off," he said. "Young families either take on more debt to maintain their original budgets and living standards, or cut spending. Overall, older families do not yet have to make such trade-offs."
Older people have a more complete social safety net
Of course, economists also note that older people spend a higher share of their income on medical care than younger people. Jonathan Oberlander, a professor of health policy and politics at the University of North Carolina at Chapel Hill, said: "Older people bear high medical and long-term care costs. Premiums for Medicare Part B, which covers outpatient care and doctor visits, have risen sharply in recent years." The annual report of the Medicare trustees predicts that in 2027, the monthly premium for Medicare Part B will rise to $209.50, an increase of more than 3% from $202.90 in 2026. Many working people rely on employer health insurance or buy commercial insurance on the Affordable Care Act marketplace. Galston believes that the U.S. social safety net as a whole tilts toward older people, giving them a huge advantage over younger groups when it comes to the cost of living. In addition to Social Security benefits being adjusted with inflation, if older people need long-term care and exhaust their assets, Medicaid can serve as the last-resort safeguard. "This is the backstop safety net, so that people do not end up homeless."
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