In 2022, the wealth gap between white, Black, and Hispanic families hit a record high, with white households amassing over $1.3 million in average wealth, compared to $227,000 for Hispanic families and $211,000 for Black families, according to a report by the Urban Institute. The report highlights how these disparities have grown, marking the first time a seven-figure gap was observed for Black and Hispanic households.
At the median, white families held $284,000 in wealth, compared to $62,000 for Hispanic families and $44,000 for Black families. Madeline Brown, a senior policy associate at the Urban Institute, emphasized that these disparities reflect structural racism. "One million dollars in a gap indicates that we still have severe racial wealth inequity in this country," she said. Brown explained that such disparities impact families' abilities to invest in homes, education, and businesses, perpetuating economic inequality across generations.
The report also examined homeownership, noting it as a critical driver of wealth in the U.S. White homeownership rates increased from 64.9% in 1960 to 73.1% in 2022, while Black homeownership rose modestly from 38.2% to 44.3%. Hispanic and Asian households saw their highest recorded homeownership rates at 51.1% and 63.2%, respectively, but these rates still fall short compared to white families. The legacy of racist housing policies continues to hinder wealth accumulation for Black families in particular.
Additionally, earnings disparities remain stark. The average white man born between 1960 and 1964 earned $2.9 million over his career, while Black and Hispanic men earned less than $1.8 million and $1.7 million, respectively. Similarly, white women earned $1.7 million, while Black women earned under $1.3 million, and Hispanic women, just $883,000.
The report called for policies like limiting mortgage interest tax deductions and reparations for Black Americans to address these inequities. "Looking at that $1 million gap, reparations... are a promising policy in bringing that gap down," Brown added.
Link: NBC News
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