Racial Wealth Gap Widens in U.S., Texas Ranks 28th in Disparity

Households with a White, non-Hispanic householder had 10 times more wealth than those with a Black householder in 2021, according to the U.S. Census Bureau’s Survey of Income and Program Participation.

The wealth gap between white Americans and Black and Hispanic Americans continues to widen, according to new data analyzed by WalletHub using federal statistics. Wealth disparities don’t just affect finances — they are closely linked to health outcomes, life expectancy and social stability, experts say.

According to the U.S. Census Bureau’s Survey of Income and Program Participation, households with a white, non-Hispanic householder had 10 times more wealth than households with a Black householder in 2021. WalletHub’s analysis found median household wealth levels of:

• $250,400 for non-Hispanic white households
• $24,520 for Black households
• $48,720 for Hispanic households

The lack of wealth can create large economic issues, health problems, and social problems as well. According to Wealth Inequality.net, wealthier people tend to live longer and healthier lives. Large wealth gaps are linked to higher rates of chronic illness, mental health struggles and shorter life expectancy for lower-income groups.

WalletHub examined America's biggest and smallest wealth gaps by race and ethnicity. Per the study, non-Hispanic white Americans have a median household wealth of $250,400, compared to $24,520 for Black households and $48,720 for Hispanic households.

To assess racial wealth disparities in the U.S., WalletHub evaluated all 50 states and the District of Columbia using 21 key indicators, each weighted according to its importance. Since white Americans make up the largest share of the U.S. population at 63 percent, WalletHub used this group as the reference point for comparing wealth gaps with nonwhite racial groups, including Black, Hispanic and Asian populations. For each metric, the largest disparity between racial groups was used to calculate each state’s overall ranking.

According to WalletHub's methodology, Texas ranked 28th overall in states with the largest wealth gaps. Per their study, the District of Columbia has the widest wealth gap in the United States, meaning the nation’s capital is also its most financially unequal place to live. White residents in D.C. earn about 64 percent more than Black residents, who face the greatest economic disadvantages. D.C. also ranks highest in the nation for disparities in poverty rates, with an especially stark divide. Black residents experience a poverty rate that is 374 percent higher than that of white residents.

WalletHub’s study also examined disparities in home ownership rates across racial groups in the United States from 2005 to 2023. Because home ownership is one of the primary ways Americans build generational wealth, these gaps play a major role in sustaining broader wealth inequality between racial groups.