Black Household Wealth Fell 25% While White, Hispanic And Asian Households Gained. Here’s What Drove It, Per New Fed Data

Christopher Rhodes, Blavity

The already significant gap between the wealth of Black and non-Black households in the U.S. has gotten worse in recent years, according to newly released data. Even as other groups in the U.S. have advanced financially, Black households have seen much of their already-lagging wealth disappear over a three-year span.

Declining value of Black assets contributes to widening racial wealth gap

Newly released data from the Federal Reserve Board shows a 25% drop in median Black household wealth from 2022 to 2025, adjusted for inflation. This analysis of the Fed’s Survey of Consumer Finances comes from the Center for Economic and Policy Research, which reported that the median Black household’s net worth fell from $49,100 in 2022 to $36,800 in 2025. That left Black households’ median wealth $179,100 below the national median in 2025, up from a $162,000 gap in 2022. The national median rose 2% to $215,900 over the same period, according to the Fed, and white, Hispanic and Asian American households all saw increases in wealth.

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Trump administration policies unlikely to help reverse Black wealth declines

The survey compares 2022 and 2025, a span that includes the end of the Biden administration and the first year of Trump’s second term. Center on Budget and Policy Priorities chief economist Gbenga Ajilore told The Grio that “what determines wealth is housing, and that’s where Black people have their wealth.” 

Read more about the report.

Many Black families fail to own high-value homes as a result of redlining.

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