In January of this year, there was a short flurry of posts about the incredible discrepancy between the wealth of black households and white households. I had no idea that the median white household has seven times the assets of the median black household. It’s primarily a legacy of history; there’s a gap in wages between white and black workers, but it’s not a 7-1 gap. Black households even save slightly more than white households at the same income level.
This has all sorts of implications, as family wealth (for example) makes higher education and entry into the housing market much easier for a young adult. As Dalton Conley notes, black college students are more likely to drop out than white college students, even if their families have the same incomes. When you control for wealth, however, black and white students perform equally as well.
(My posts on the subject are here, here, and here. Kevin Drum, Kieran Healey (the link is probably not working), and Rob Lyman all had excellent posts on the subject.)
Recently, I got an email from Jonathan Maccabee with more detail about the value of owner-occupied homes, the primary source of wealth for most families. He took a look at the US Census’ American FactFinder, table HCT 66, “Median Value of Owner-Occupied Housing Units.” (I’m restricting this to white and black for the sake of simplicity.)
|
Total |
White |
Black |
National |
$119,600 |
$122,800 |
$80,600 |
California |
$211,500 |
$225,500 |
$164,600 |
New York |
$148,700td>
| $142,500 |
$163,900 |
Texas |
$82,500 |
$87,600 |
$62,400 |
Says Jonathan,
As you can see, the racial gap in housing prices is significant. Though in New York State, to my surprise, the gap works in reverse, as most minorities who own homes live in the very expensive New York City area. The percentage of those who live in owner-occupied housing, of course, is very low in much of New York City and generally lower for minorities than whites; the Census doesn’t calculate the percentages, but the comparison is at Summary File 4, HCT 2 – Tenure (translation: living in owner-occupied housing vs. renter-occupied housing). This is one reason why these numbers enormously understate the wealth gap between whites and minorities.
It’s worth making the point that the proportions of white and black households who own their own homes are very different. According to the Local Initiatives Support Coalition, black home ownership rate was at 46.3% in 2000, while white home ownership was at 73.8%.
I can’t get over it. I finally got Dalton Conley’s book, Being Black, Living in the Red, and I’ll have to report on it later.