Latest Federal Reserve Data on Average Wealth by Race
The most recent Survey of Consumer Finances from the Federal Reserve, released in 2023, provides updated figures on average wealth by race. White families held a median net worth of approximately $190,000 in 2022, while Black families held a median net worth of roughly $24,000, and Hispanic families held a median net worth of about $38,000. These figures show the persistent scale of the racial wealth gap across the United States. For deeper context on how these gaps have evolved, see the Federal Reserve's official release on the Survey of Consumer Finances here.
The data also highlights the concentration of wealth at the top, where the top 10 percent of families by race control a large share of total net worth. In the 2022 survey, the top 10 percent of white families held a disproportionate share of total white family wealth, a pattern mirrored in Black and Hispanic communities. This concentration affects retirement security, homeownership rates, and access to capital, reinforcing differences in average wealth by race across generations.
Key Drivers of the Racial Wealth Gap
Homeownership and Housing Equity
Homeownership remains one of the largest contributors to family wealth, and differences in homeownership rates by race directly shape average wealth by race. According to the U.S. Census Bureau's 2022 American Community Survey, the homeownership rate for white households was around 74 percent, compared with about 44 percent for Black households and 47 percent for Hispanic households. This gap in property ownership translates into a significant difference in housing equity, which is often the single largest asset for middle-class families.
Beyond ownership rates, the value of homes owned by Black and Hispanic households tends to be lower on average, partly due to historical redlining, appraisal gaps, and differences in neighborhood investment. These factors compound over time, affecting the ability to build equity, secure loans, and pass wealth to the next generation. The legacy of discriminatory housing policies is a central reason why average wealth by race remains so unequal more than 50 years after the Fair Housing Act.
Income, Employment, and Business Ownership
Earnings differences also feed the wealth gap, with Black and Hispanic workers earning less on average than white workers, even after controlling for education and occupation. The Bureau of Labor Statistics' most recent data shows persistent disparities in median weekly earnings across racial groups, which limit the amount families can save and invest each year. Lower earnings reduce contributions to retirement accounts and emergency savings, widening the gap in average wealth by race.
Business ownership is another pathway to wealth, yet access to capital remains uneven. The Federal Reserve's Small Business Credit Survey has documented that white-owned businesses are more likely to receive bank financing and larger loan amounts than businesses owned by Black or Hispanic entrepreneurs. This disparity in access to credit affects startup success, expansion, and the ability to build business equity, which is a key component of overall net worth.
Implications for Financial Planning and Policy
Retirement and Investment Gaps
Differences in retirement account balances are a major factor in the racial wealth gap. The Survey of Consumer Finances shows that white families hold significantly more in defined-contribution plans such as 401(k) accounts than Black and Hispanic families, a gap tied to income, employer benefits, and job stability. These retirement savings gaps mean that average wealth by race will likely persist in the near term without targeted policy changes.
Policy Responses and Recent Initiatives
Recent federal initiatives have aimed to narrow the gap through expanded access to mortgage credit, small-business lending programs, and financial literacy efforts.