Closing the Racial Wealth Gap

In the United States, the typical Black or Hispanic household has less than one-fifth the wealth of the typical white household. The racial wealth gap is the result of many factors, most, if not all, of which are rooted in our country’s legacy of systemic racism.  Households of color have lower incomes on average than white households, they are also less likely to benefit from intergenerational wealth transfers (e.g. inheritances and financial gifts from parents or grandparents), and they are less likely than white households to own the home they live in. Homeownership is the primary means by which middle class households in the US build wealth.  Therefore, closing the racial homeownership gap by increasing the percentage of Black and Hispanic households that own their homes is critical to making the distribution of wealth more fair.

What’s the Homeownership Gap in Your Community?

Check out the racial homeownership gap in communities across the US and what it would take to close it.

Homeownership is Key to Closing the Racial Wealth Gap

The typical Black or Hispanic American household has less than one-fifth the wealth of the typical White household. The racial wealth gap is the result of numerous factors, most of which are rooted in America’s legacies of both overt and systemic racism.

by Kelly O’Donnell PH.D. | Chief Research & Policy Officer, Homewise

Understanding the Racial Wealth Gap

Households of color have lower incomes on average than white households, they are also less likely to benefit from intergenerational wealth transfers (e.g. inheritances and financial gifts from parents or grandparents), and they are less likely than white households to own the home they live in.

by Kelly O’Donnell PH.D. | Chief Research & Policy Officer, Homewise

Within Reach: New Mexico Can Be the First State to Close the Racial Homeownership Gap

Due to the relatively modest size of New Mexico’s homeownership gap and a substantial state budget surplus, New Mexico is well-positioned to be the first state to achieve racial parity in homeownership through forward-thinking public policy.

by Kelly O’Donnell PH.D. | Chief Research & Policy Officer, Homewise