A new study showed that black families in the United States were able to achieve financial gains and develop their wealth during the “Corona” Pandemic period more than others when compared to other families, but the study indicates that the gap in wealth owned by black people compared to others Still big and deep.
According to the study, the results of which were published by CNBC in a report seen by Al Arabiya.net, the average net worth among black families increased to more than $340,000 during the third quarter of last year from the end of 2019, which represents an increase of 32% over the past year. 11 quarters only.
The study, conducted by Wells Fargo, showed that families who do not belong to the black-skinned minority achieved during the same period a growth in wealth by 21%, but these families had an average wealth of $950,000 per family, of which just before the onset of the Pandemic, that is, in The end of 2019, which means that it still has much more wealth, although it has grown at a slower pace.
“The racial wealth gap remains staggering, with the net worth of black Americans 70% less than that of non-black households,” the study said.
“There is immediate progress, but there is still a huge gap,” said Guy Bryson, chief economist at Wells Fargo. “This is a step in the right direction, but there is still a lot of progress to be made here,” he added.
Researchers say one of the contributing factors to the slight shrinkage in the wealth gap is the fact that the origins of black families are less diverse.
The study showed that at the end of 2019, real estate and pension benefits accounted for nearly 70% of the assets of black households, while the assets of other households were evenly distributed among six major categories.
Because of their low exposure to the stock market, black Americans will not see significant volatility in their stock holdings amid the wild volatility of Wall Street in 2022.
The S&P 500 index fell about 20% last year, recording its worst annual loss since 2008.
“The good thing is that black families haven’t been hurt as badly because of it,” Bryson said. He added, “The bad thing is that their assets and investments are not as diversified as they should be, but this has definitely helped them at least over the past year… It’s a blessing in disguise.”
Housing prices have soared during the pandemic as people staying at home sought new places to live, buoyed by record low interest rates. The study found that the value of real estate holdings of black individuals has increased by 72% since the end of 2019, nearly twice the gains made by non-black individuals. Furthermore, lower-priced homes tend to have a larger percentage increase.
“What’s happened is that overall home prices have gone up more among the lower-priced properties than among the higher-priced properties,” Bryson said. “Given the income gap, black families are likely to be overrepresented at lower price points,” he added.