CNBC, February 23, 2023, Black Families’ Net Worth Has Grown More Than Other Racial Groups Since Covid, But Wealth Gap Remains Wide
Black families saw their wealth grow more than that of non-Black households during the pandemic, but the racial wealth gap is still vast, a new study showed.
The average net worth among Black households rose to more than $340,000 through the third quarter of last year from the end of 2019, marking an increase of 32% over just 11 quarters, according to research from Wells Fargo using data from the Federal Reserve Board.
While non-Black families had a much higher starting point at roughly $950,000 just before the onset of the pandemic, their wealth has risen just 21% over the same period, the Wells Fargo study showed. But even with the improvement, the racial wealth gap is still staggering: Black Americans’ net worth is 70% below that of non-Black households.
Experts cautioned that just one study focusing on a short time frame might not represent a sustainable bridging of the racial wealth gap.
“I don’t think it signifies any true bridging in racial wealth inequality,” Dedrick Asante-Muhammad, chief of organizing, policy and equity at National Community Reinvestment Coalition, said in an interview. “What we want to see is substantial homeownership increases, long-term home value increases, income and maybe in 401(k)s and stocks.”