By Mary Spiller
A new report called “Scoping the Racial Wealth Gap in New York State and City” shows that the racial wealth gap between Black Americans and white Americans is extremely high.
According to the study, conducted by New York’s comptroller, white households have a median net worth of $276,900 — nearly 15 times higher than Black households, which have a net household worth of just $18,870.
Comptroller Brad Lander said, “The data in our report show — in Black and white — the persistence of a stark racial wealth gap in New York. The median household net worth of white New Yorkers is nearly 15 times that of Black New Yorkers — 15 times.”
He explained such wealth gaps ricochet through other aspects of financial and educational well-being for families.
“The average white New York high school graduate has a net worth three times greater than the average Black college graduate. These numbers add up to opportunities denied to millions of Black New Yorkers; wealth disparities perpetuated across generations, and a poorer city and state for all of us since inequality holds back economic growth for all.”
The numbers were not limited to New York, but the state has a more severe wealth gap than the national average. In the United States, the median white household has a net worth of $291,250, and the median Black household net worth is $31,370, which, while still concerning, is a narrower gap than the New York State numbers.
“Scoping the Racial Wealth Gap” identified further causes and ramifications and causes of the discrepancy, saying that white New Yorkers who have only earned “a high school degree [still have a net worth] three times greater than their Black counterparts who are college graduates.” This has led to Black New York citizens having higher rates of student debt as well.
With the inequality in education and financial opportunities, only 24 percent of Black New York citizens are homeowners, as opposed to 63 percent of white citizens. Further, “the average home owned by a Black New Yorker is valued significantly lower than the median White New York City homeowner.”
The Scoping the Racial Wealth Gap report has revealed a concerning deficit in wealth equity in New York State.
