What is the racial wealth gap?

The racial wealth gap refers to the significant difference in household wealth between racial and ethnic groups in the US. The median white household has roughly 6-8 times the wealth of the median Black household and about 5 times the wealth of the median Hispanic household. This gap has remained relatively stable (or widened) over the past several decades despite progress in income and education. The gap exists across all income and education levels — even college-educated Black families have significantly less wealth than white families without college degrees.

What causes the racial wealth gap?

The gap stems from a combination of historical and ongoing factors: centuries of slavery and unpaid labor, discriminatory policies like redlining (which prevented Black families from homeownership — the primary wealth-building tool for most Americans), lower rates of intergenerational wealth transfers (inheritance), persistent wage gaps, disparities in access to employer-sponsored retirement plans, predatory lending targeting minority communities, and gaps in financial services access. These factors compound over generations.

Wealth by Race: The Racial Wealth Gap in America (2026 Data)

The racial wealth gap is one of the most persistent features of American economic life. Here’s what the data shows.

Median Net Worth by Race

Race/Ethnicity	Median Net Worth	Mean Net Worth	Ratio to White (Median)
White (non-Hispanic)	$285,000	$1,094,000	1.0x (baseline)
Asian	$340,000	$1,130,000	1.2x
Hispanic/Latino	$61,600	$265,000	0.22x
Black	$44,900	$240,000	0.16x
Other/Multiracial	$68,000	$380,000	0.24x

Source: Federal Reserve Survey of Consumer Finances (SCF), most recent available, inflation-adjusted.

The median white family has 6.3x the wealth of the median Black family and 4.6x the wealth of the median Hispanic family.

Wealth Gap Over Time

Year	White Median NW	Black Median NW	Hispanic Median NW	Black/White Ratio
1989	$162,000	$12,000	$14,000	7.4%
1998	$187,000	$21,000	$21,000	11.2%
2007	$213,000	$23,000	$26,000	10.8%
2010 (post-crisis)	$141,000	$11,000	$14,000	7.8%
2016	$189,000	$24,000	$36,000	12.7%
2019	$250,000	$34,000	$51,000	13.6%
2022	$285,000	$44,900	$61,600	15.8%

All values in 2022 dollars. The ratio has improved modestly but remains enormous.

Homeownership: The Primary Wealth Builder

Race/Ethnicity	Homeownership Rate	Median Home Equity	Median Home Value
White	74.6%	$215,000	$300,000
Asian	63.0%	$280,000	$380,000
Hispanic	49.5%	$155,000	$260,000
Black	45.3%	$120,000	$230,000

Homeownership Rate Over Time

Year	White	Black	Gap
1960	65%	38%	27 pts
1980	68%	44%	24 pts
2000	74%	47%	27 pts
2010	73%	45%	28 pts
2024	74.6%	45.3%	29.3 pts

The Black-white homeownership gap is larger today than it was in the 1960s when housing discrimination was legal.

Impact of Redlining (Historical)

Factor	Formerly Redlined Areas	Non-Redlined Areas
Current median home value	63% lower	Baseline
% minority population (today)	64%	31%
Poverty rate (today)	25%	12%
Life expectancy (today)	3.6 years shorter	Baseline
Tree canopy coverage	23% less	Baseline

Source: National Community Reinvestment Coalition, University of Richmond’s “Mapping Inequality.”

Income Gap

Race/Ethnicity	Median Household Income	% of White Median
Asian	$108,700	122%
White (non-Hispanic)	$81,060	100%
Hispanic	$62,800	77%
Black	$53,000	65%
American Indian/Alaska Native	$54,000	67%

Income Gap by Education Level

Education	White Median Income	Black Median Income	Gap	Hispanic Median Income	Gap
Less than high school	$35,000	$28,000	-$7,000	$30,000	-$5,000
High school diploma	$48,000	$37,000	-$11,000	$40,000	-$8,000
Some college	$55,000	$43,000	-$12,000	$48,000	-$7,000
Bachelor’s degree	$78,000	$60,000	-$18,000	$65,000	-$13,000
Advanced degree	$100,000	$78,000	-$22,000	$82,000	-$18,000

The income gap widens at higher education levels — suggesting that education alone doesn’t close the gap.

Retirement Savings

Race/Ethnicity	Median Retirement Savings (Age 55-64)	% with Any Retirement Account	Median 401(k) Balance (Participants)
White	$190,000	65%	$120,000
Asian	$220,000	62%	$140,000
Hispanic	$42,000	38%	$45,000
Black	$48,000	42%	$50,000

Access to Employer Retirement Plans

Race/Ethnicity	% with Access to 401(k)/Pension	% Participating (of Those with Access)
White	62%	80%
Asian	58%	78%
Hispanic	38%	62%
Black	44%	68%

A major driver: Hispanic and Black workers are more likely to work in industries without employer retirement plans (food service, agriculture, domestic work).

Student Debt

Race/Ethnicity	Average Student Debt at Graduation	Median Debt (All Borrowers)	Default Rate (5-Year)
White	$30,000	$25,000	10%
Black	$38,000	$35,000	21%
Hispanic	$28,000	$22,000	15%
Asian	$26,000	$21,000	8%

20 Years After Entering College

Race	Median Student Debt Remaining	Explanation
White	$0 (most have paid off)	Family wealth helps pay down debt
Black	$12,000 (still owe 95% of original)	Less family wealth, lower income to pay down

Inheritance and Intergenerational Transfers

Race/Ethnicity	% Receiving Any Inheritance	Median Inheritance Received	% Receiving Living Gifts ($10K+)
White	30%	$88,500	24%
Black	10%	$36,000	8%
Hispanic	7%	$27,500	6%

Impact of Inheritance on Wealth

Scenario	White Family Median NW	Black Family Median NW	Ratio
Did not receive inheritance	$165,000	$32,000	5.2x
Received inheritance	$470,000	$100,000	4.7x
Inheritance effect	+$305,000	+$68,000

Even when both groups receive inheritance, white families receive much larger amounts.

Business Ownership

Race/Ethnicity	% Who Own Business	Median Business Equity
White	15%	$100,000
Asian	12%	$75,000
Hispanic	6%	$25,000
Black	5%	$15,000

Small Business Loan Approval Rates

Race of Owner	Approval Rate (Traditional Banks)	Average Loan Size
White	49%	$210,000
Asian	42%	$175,000
Hispanic	29%	$130,000
Black	21%	$95,000

Wealth Gap at Every Income Level

Income Level	White Median NW	Black Median NW	Gap
Bottom 20% (< $28K)	$18,000	$600	30x
20-39.9% ($28K-$51K)	$68,000	$10,000	6.8x
40-59.9% ($51K-$84K)	$155,000	$40,000	3.9x
60-79.9% ($84K-$141K)	$340,000	$105,000	3.2x
Top 20% ($141K+)	$975,000	$310,000	3.1x

The wealth gap exists at every income level — high-earning Black families have roughly the same median wealth as middle-income white families.