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Racial and Ethnic Household Wealth Trends and Wealth Inequality

Liine Chart showing Average Real Wealth by Race and Ethnicity from 1990 - 2020

SOURCES: Distributional Financial Accounts and Institute for Economic Equity’s calculations.

NOTE: Vertical bars indicate recessions.

This figure shows average real family wealth by race and ethnicity. On average, all families experienced growth from 1989 to 2020, though the wealth of white families grew more consistently over that time frame.

Line Chart showing Average Real Wealth Gaps Between Racial and Ethnic Groups for Blacks and Hispanics

SOURCES: Distributional Financial Accounts and Institute for Economic Equity’s calculations.

NOTE: Vertical bars indicate recessions.

This figure shows the magnitude and persistence of the Black/white and Hispanic/white wealth gaps from 1989 to 2020. The average Black/white ratio was 24 cents per $1 over this period, while Hispanic families had 22 cents, on average, per $1 of white family wealth. As seen in the figure, Black and Hispanic family wealth has fluctuated relative to white family wealth from 1989 to 2020. However, the gaps (represented by low ratios) remain sizable. As of the third quarter of 2020, Black families had 23 cents for every dollar of white family wealth, while Hispanic families had 19 cents per every dollar of white wealth.

Bar chart showing Average Real Wealth by Race and Ethnicity for Third Quarter 2020 for Black, Hispanic, and White

SOURCES: Distributional Financial Accounts and Institute for Economic Equity's calculations.

This bar chart shows the average family wealth for Blacks, Hispanics and whites in the third quarter of 2020. Black families had about $881,000 less wealth, on average, compared with white families, while Hispanic families had about $922,000 less wealth, on average, than white families.