Homeownership and the Wealth Gap

The growing wealth gap is a problem. The movement we made towards wealth equality in the mid 20th century with the rise of the middle class has been undone and the wealth gap is the largest it’s been since the 1920s. More troubling still is that the wealth gap is growing along racial and ethnic lines. In 1963, average white family wealth was $136,221 while the average wealth of non-white families was $18,892, a difference of over $117,000. But in 2013 the average wealth of white families was $677,658 while the average of wealth of African American and Hispanic families was $95,351 and $112,227 respectively (McKernan et al., 2013). That’s a difference of over $550,000. The wealth gap between white and non-white families has grown nearly 500 percent over these 50 years.