The persistent racial wealth gap between White and Black families in the United States has created a significant barrier to entry to higher education for Black Americans. Households with lower incomes and wealth often must borrow money in order to send their children to college, resulting in debt and financial hardship for both parents and children. In 2022, the U.S. Census Bureau found the median net worth of Black households was $14,100, while the median net worth for White households was $187,300.
While the net worth of both groups has increased since that time, the racial gap remains staggeringly high. According to data from WalletHub, White Americans now have a median household wealth of $250,400, compared to $24,520 for Black households. However, this gap is not spread evenly throughout the country.
By examining disparities in household income, homeownership rates, poverty rates, and educational attainment, researchers from WalletHub have identified which U.S. states have the biggest and smallest racial wealth gaps.
According to their analysis, the WalletHub researchers found Washington, D.C., has the highest wealth gap in the country. In our nation’s capital, White people earn about 64 percent more than Black people. Compared to White residents, Black residents of Washington, D.C. have a 374 percent higher poverty rate, are 61 percent less likely to have a bachelor’s degree, and are 263 percent more likely to be unemployed. Despite these vast disparities, Washington, D.C. has the lowest racial gap in homeownership.
Following Washington, D.C., the highest overall racial wealth gaps in the country are in Wisconsin, Nebraska, North Dakota, and Iowa. In contrast, West Virginia was found to have the lowest overall racial wealth gap in the country, followed by Montana, Alaska, Hawaii, and Florida.
