Dear New Yorkers,
Today, on the anniversary of the ratification of the 13th Amendment, my office published a first-of-its-kind report on racial wealth disparities in New York.
The data in our report show, in black and white, the persistence of a stark racial wealth gap in New York State and City. It reveals severe racial inequities in net household wealth, home values, retirement savings, investment income, and student debt.
Furthermore, our findings strongly support efforts to establish a state-level commission on reparations. The legislation, spearheaded by State Senator James Sanders, Jr. and Assemblymember Michelle Solages, is part of a wave of efforts around the country to confront the lasting impact of slavery and institutional racism on Black families’ ability to achieve economic security and build wealth.
Reparations are one part of an attempt to reckon with our country’s centuries-old legacy of slavery and institutional racism. As author and journalist Ta-Nehisi Coates writes, “Virtually every institution with some degree of history in America, be it public, be it private, has a history of extracting wealth and resources out of the African American community.” This history is well-documented, particularly in the realms of housing, education, employment, and access to the financial system.
Our city and state are no exceptions. From redlining to school segregation, from public health inequity to discriminatory policing and judicial practices, New York State and New York City have both seen their share of de facto and de jure practices that helped white families build wealth while preventing Black families from doing the same.
How does this rotten legacy affect New Yorkers’ lived experiences today? The median household net worth of white New Yorkers is nearly 15 times that of Black New Yorkers.
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White households in New York State have a median household net worth of $276,900, compared to Black households with net household worth of $18,870. New York State also has a wider racial wealth gap than in the United States as a whole, where the median white household net worth is $291,250 and the median Black household net worth is $31,370.
Homeownership, historically a primary means for wealth-building, also remains elusive for Black families in New York State. While 63% of white New Yorkers own their homes, only 24% of Black New Yorkers do. In addition, the median Black New York City homeowner’s home value is significantly lower than the median White New York City homeowner’s.
Given that homeownership has historically been the primary means for American families to build wealth and enter the middle class, the decades of racism which have marked our nation’s housing policies have had a lasting impact on Black families’ ability to do so.
The data in our report add up to opportunities denied to millions of Black New Yorkers, wealth disparities perpetuated across generations, and a poorer city and state for all of us as inequality holds back economic growth for all.
Given the severe and persistent racial wealth gap in both New York City and State—visible in virtually all major components of wealth, including homeownership, investment assets, retirement funds, and student debt—a commission to study reparations is a worthwhile endeavor.
Read our full report on racial wealth disparities here.
Thanks,
Brad
