The Racial Wealth Gap

Home and business ownership are known to be foundational steps to wealth building. New homebuyers and business owners start out at a disadvantage that is evident by a disturbing racial wealth gap. Financial limitations and access to resources often make financial growth an uphill climb leaving black and brown families in danger of taking on debt that could deplete funds and/or negatively impact their credit and net worth.
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THE RESEARCH
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According to the Urban Institute’s racial and ethnic disparities in wealth data, the median White American family has nearly 10 times the wealth of the median Black American family. After leaving college, students of color are further in debt and less likely to be able to lean on family members for financial support that might ease the burden of business and home loan costs.   Usafacts.org published similar data: “Comparatively, Black families achieve considerably less wealth than white families, with a median net worth of $24,100 compared to $188,200. The wealth gap between Black and white households has many causes, one of which is the intergenerational transfer of wealth via inheritances. In 2019, for example, 30 percent of white households received an average inheritance of nearly $200,000, while only one in 10 Black households did, at $100,000 on average. "The Brookings Institute also found that “homeownership opportunities, access to tax-sheltered savings plans, and individual's; savings and investment decisions” are major factors that contribute to wealth accumulation and financial security.”

Closing the Gap

Our solution is to attack the root cause of a wide range of disparities impacting the health of communities of color. ASB’s method starts with education, motivation, and inspiration, followed swiftly with a range of resources and supports to help individuals overcome inequitable circumstances. One such resource is our newly developed CTO Fund. Your donation to ASB supports resource dissemination and provides dollars for small grants. The CTO grant is a fund created to assist Chicago Housing Authority Choose to Own buyers who need minor repairs that the seller is unwilling to complete. These required health and safety repairs have varying costs that, if not completed, would prevent the buyer from moving forward with the purchase. ASB will continue to create innovative efforts to help communities of color with overcoming the barrier to wealth creation. View the testimonial to see how your dollars count.

"Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome."