Census Bureau: Black Families Are Poorest of All
Black families tied their nest eggs to their homes, and in the months leading up to the Great Recession and the recent housing bubble, many black families financed their homes with sub-prime loans.
The end result was devastating, so devastating that the financial crisis will negatively affect scores of black children who want to attend college.
The numbers are grim: white Americans have 22 times more wealth than black families; the median household net worth for whites was $110,729 in 2010, versus $4,995 for blacks, according to recently released Census Bureau figures.
This gap in median family income for white families, when compared to black families, nearly doubled during the Great Recession. In 2005, before the recession, the median income for white families was 12 times higher than that for black families.
Hispanic families also tie their families’ net worth in their homes, but they did not fare as poorly as black families when the housing bubble burst.
The Census Bureau reported the median household net worth for Hispanics is $7,424, substantially more than the median household net worth for blacks, $4,995.
To add insult to injury, post-recession, lending to black and Hispanic borrowers tumbled between 2006 and 2008, according to the 2008 Home Mortgage Disclosure Act data. Blacks were denied mortgages 36.1percent of the time in 2008, while Hispanics could not get a loan 31.1percent, according to the data. Whites had denial rates of 13.percent.
Prince George’s County, Md., the wealthiest black county in America, also suffered the worst foreclosure rate in Maryland after the bubble burst.
This stunning home, five bedrooms, three baths, rivals that of many celebrity homes, with a price tag of $695,000. The home boasts a river view, soaring ceilings, media room, and a guest home. Photo: Heymann Realty, LLC.