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Wealth-building trends amongst Black Americans

By: Get News

Despite the continuing presence of systemic racism and social injustice, black Americans have made significant financial progress in recent years. Wealth building demographics, particularly among millennials, are more diverse than ever. Here is some compiled data on the personal finance trends of black Americans. 

Black millennials are leading the charge in entrepreneurship in the U.S.. With discriminatory hiring practices still rampant across the nation, many are choosing to start their own businesses rather than work for someone else. There is currently just a 6% gap between white millennials (73%) and black millennials (67%) in this area.  

Home Ownership vs Stock Market Investing

The Fair Housing Act of 1968 opened doors that were previously closed to black Americans. The legislation made it “illegal” for home sellers to discriminate against buyers based on the color of their skin. It didn’t eliminate racism, but it did improve home ownership statistics over the next several decades. By 2005, 69% of black Americans owned their own home. 

The trend shifted after the housing crash of 2008. It wasn’t so much about color, though many of those who lost their homes were black Americans. The exposure of adjustable-rate mortgages and the financial carnage that followed created a sense of distrust in real estate. Stock market investing surged for 57% of middle-income blacks ($50K-$100K).    

For black families making over $100K, the percentage of stock market investors rises to 80%. Unfortunately, the median wealth for black Americans is still significantly lower ($24,100) than the median wealth for white Americans ($188,200). Since 2008, the percentage of black homeowners has declined to 41.8%. Comparatively, 71.9% of whites own homes. 

Black Consumer Purchasing Power is Growing

Black Americans make up just 14.6% of the total population in the U.S., but black consumer spending topped $1.3 trillion last year. That has U.S. companies paying attention, many of them implementing specific programs and incentives to earn the “black dollar.” Television networks are following suit with content targeted to the black community. 

This is astounding considering that 18.8% of black Americans are living in poverty. That’s well-documented. What people don’t normally hear is that black households earning over $200,000 increased their income by 138% between 2005 and 2013. The matching demographic in the white community only saw an increase of 74%. That number is significant.

The 2020 Pandemic Devastated the Black Community

Job losses and economic devastation were widespread during the 2020 pandemic, with the brunt of the impact being felt by lower income communities and individuals employed by service providers and restaurants. This hit particularly hard in the black community, where job and education equality are still very much a work in progress. 

Despite all the obstacles in their way, black Americans continue to strive for more and are making progress financially. The road ahead is still long and filled with potential pitfalls, but the resilience of a people who have been historically oppressed is breaking barriers every day. Better days are coming.  

Media Contact
Company Name: Credello
Contact Person: Carolina Darbelles
Email: Send Email
Country: United States
Website: https://www.credello.com

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