BELOW SUPERNAV drop zone ⇩

Black and Hispanic wealth grew at high rate from 2016-2019, trails white wealth

MAIN AREA TOP drop zone ⇩

MAIN AREA TOP drop zone ⇩

Mortgage Calculator

This calculator helps you estimate your monthly mortgage payment. It adds up the loan payment (principal + interest), property tax, and insurance. The loan payment is spread out over the years of your loan term.

This is the total amount you're borrowing from the bank.
This is the yearly interest rate on your loan.
This is how long you'll take to repay the loan.
This is the yearly tax you pay on your property.
This is the yearly cost to insure your home.

Monthly Payment Breakdown

Principal and Interest: $

Property Tax: $

Homeowners Insurance: $

Total Estimated Monthly Payment: $

MIAMI (NewsNation Now) — Sherronda Daye was making six figures with her successful bakery and catering business that supplied desserts to Miami sporting arenas.

Now, she is barely making it and trying to pivot into a new business.

“When the pandemic hit for me, reality put on six inch pumps and was like so what are we going to do? You find yourself in the midst of a pandemic and you are like damn this is what bottom feels like,” said Daye. “And you are trying to climb yourself back to that momentous place you felt at the beginning of 2016.”

Black and Hispanic wealth grew faster than white wealth pre-pandemic, between 2016 and 2019, according to a report by the Federal Reserve. Black net worth grew by about 33%, Hispanic net worth grew by about 65%, and white net worth grew by 3%.

“There is a shift. But I don’t know that the shift has had the magnitude you can feel it and feel the earth shake under your feet,” said Daye.

Get fact-based, unbiased news coverage 24/7 with the NewsNation app. Download it here.

While the growth numbers show positive trends during those years, there is still a massive wealth gap that exists between white and minority families. The median wealth for Black families is about $24,000, for Hispanic families, it is about $36,000 and for white families, it is about $188,000.

“We need to understand why that wealth gap is so large. And some of our work at our center has traced that back to historical inequities. But I think it is important to focus on that growth as well because far too often there has been a focus on the deficits and I think it is important to applaud and understand why wealth grew in this time period,” said Lowell Ricketts with the Federal Reserve Bank of St. Louis.

Kristin Kitchen grew up financially poor, but is now living her dream. She owns the Dunns-Josephine, a boutique hotel in Miami. She is skeptical the average Black family felt their net worth grow from 2016 to 2019 but is optimistic about the future.

“I think this moment with the pandemic and George Floyd. There is a moment in America where maybe things will turn around. Maybe net worth will grow in a number where it is not 17,000 to 23,000 but 23,000 to 100,000. Where we would get to 50% of the average net worth of a White person,” said Kitchen.

Sherronda and her family thought they were on their way to that but then the coronavirus pandemic hit.

“Is it easy? No it is not. Do I make it look easy? Probably a little more than it is. But when you go from getting $1,000 invoices on a weekly basis to selling tea and getting ten or twenty dollars per order, that gap is a hard gap to fill. I don’t care who you are. That is a hard gap. Because when I make that ten or twenty dollars I have a choice. Do I take this and put it back into the business to drum up more business? Or do I pay the rent,” Daye said.

U.S.

Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed

Site Settings Survey

 

MAIN AREA MIDDLE drop zone ⇩

Trending on NewsNation

MAIN AREA BOTTOM drop zone ⇩

tt

KC Chiefs parade shooting: 1 dead, 21 shot including 9 kids | Morning in America

Witness of Chiefs parade shooting describes suspect | Banfield

Kansas City Chiefs parade shooting: Mom of 2 dead, over 20 shot | Banfield

WWE star Ashley Massaro 'threatened' by board to keep quiet about alleged rape: Friend | Banfield

Friend of WWE star: Ashley Massaro 'spent hours' sobbing after alleged rape | Banfield

Fair

la

65°F Fair Feels like 65°
Wind
9 mph WSW
Humidity
51%
Sunrise
Sunset

Tonight

Partly cloudy early followed by cloudy skies overnight. Slight chance of a rain shower. Low 52F. Winds light and variable.
52°F Partly cloudy early followed by cloudy skies overnight. Slight chance of a rain shower. Low 52F. Winds light and variable.
Wind
4 mph SSW
Precip
15%
Sunset
Moon Phase
Waxing Gibbous