For decades, researchers have tracked the household incomes and wealth generation among Black and white Americans. The Black-white wealth gap is a significant and persistent economic disparity in the United States, reflecting deep-rooted historical injustices and systemic barriers that have hindered wealth accumulation among Black households.
For example, as of 2019, the median wealth of white households was approximately $189,100, while that of Black households was only $24,100, illustrating a staggering wealth ratio of nearly 8 to 1. This gap is not merely a reflection of income differences; it is deeply intertwined with historical policies and practices that have systematically disadvantaged Black Americans.
The origins of the wealth gap can be traced back to the era of slavery, followed by discriminatory practices such as Jim Crow laws, redlining, and unequal access to education and employment opportunities. These historical injustices have created a legacy of economic disadvantage that continues to affect Black families today. For instance, Black households are more likely to have their wealth concentrated in non-liquid assets, such as home equity, which has appreciated at a slower rate compared to investments in stocks and other financial instruments predominantly held by white households.
Recent studies indicate that the wealth gap has not only persisted but has also widened in recent decades. Factors contributing to this trend include disparities in capital gains, where White households have benefited disproportionately from rising asset values. The COVID-19 pandemic further exacerbated these inequalities, as Black households faced greater economic vulnerabilities due to lower wealth reserves and higher exposure to job losses.
Sociologist Joe LaBriola, Assistant Research Professor at the University of Michigan Survey Research Center, released his findings in an article “Rising house prices don’t just make it harder to become a homeowner – they also widen the racial wealth gap” published Feb. 24 on The Conversation.
LaBriola joined the BLK News Now! Podcast this week for an in-depth discussion on why rising housing prices are driving the Black-white wealth disparity in the U.S., how wealth inequality can be addressed, and what policy-level decisions could have a positive impact.
More of LaBriola’s research can be found at JoeLaBriola.com. He can also be followed on X, the platform formerly known as Twitter, and Bluesky.
Listen to our podcast on Spotify for more details.
FOLLOW:
Mastodon: https://mastodon.social/@BLKNewsNow
Spotify: BLK News Now! Podcast
FOLLOW THE BLK NEWS NOW! PODCAST EVERY SATURDAY at 7 PM (PT) ONLY ON SPOTIFY!
