Black Families Hold 17 Cents for Every Dollar of White Family Wealth, Federal Reserve Data Shows

The median net worth of African American families was $44,900 in 2022, compared to $285,000 for white families, according to the Federal Reserve's Survey of Consumer Finances. That means Black families hold 17 cents for every dollar of wealth held by white families.

The racial wealth gap widened between 2019 and 2022 even as wealth increased across all racial groups. The difference between median white and Black household wealth grew by $49,950 during that period, reaching $240,120.

Black household income averaged $52,860 annually, compared to $81,060 for white households.

African Americans make up about 13 percent of the US population but own only 3 percent of the nation's assets. Thirty-two percent of African Americans have zero or negative net worth.

Homeownership is a key driver of the gap. Only 44 percent of Black individuals own a home, compared to nearly 73 percent of white individuals. Stock equity made up nearly 30 percent of white wealth growth between 2019 and 2022 but only 4 percent of Black wealth growth.

Researchers point to redlining, limited inheritance, employment discrimination, and higher student debt burdens as structural causes. In 2019, 30 percent of white households received an inheritance averaging $195,500, compared to 10 percent of Black households averaging $100,000.

Proposed remedies include baby bonds, community reinvestment through minority-owned banks, expanded homebuyer assistance, and increased support for Black-led businesses. Financial literacy programs targeting Black and Brown communities are also expanding, though researchers note that knowledge gaps alone do not explain the disparity.