Wealth gap between whites and minorities increases
The housing market crash greatly impacted minorities, who invest more assets in real estate. (Photo from Wikimedia user respres) )
Story from The Takeaway. Listen to audio above for full report.
The wealth gap between whites and minorities in the United States has ballooned to its largest ratios in decades, according to a new study by the Pew Research Center. Hardest hit are Hispanics, who have lost 66 percent of their median wealth, with African Americans losing 53 percent. Whites were the least affected, showing only a 16 percent decrease in median wealth.
“Wealth,” as defined in statistical studies, is measured as a family’s assets minus its liabilities. The losses which the study show reflect how each community typically places their investments.
According to Sabrina Tavernise, The Takeaway’s New York Times correspondent, minorities in the last 30 years have been more likely to invest in real estate. On average, minorities have put 67 percent of their assets into the housing market — which crumbled amidst the Great Recession. Conversely, Tavernise reports, whites are more likely to diversify their assets, investing only about 40 percent into real estate.
The result places minorities in a wealth bracket lower than their levels in 1984, accounting for inflation, erasing nearly 30 years of economic gain.
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