The Racial Wealth Gap

The causes of the Racial Wealth Gap are complex and many. They are related to the legacy of systemic racism which results in different racial groups having different opportunities and experiences both historically and currently.

Image: Vox

What Does the Data Say?

Some factors include long-term impacts of slavery, the legacy of Jim Crow, racial violence, redlining and housing segregation and systemic discrimination based on race in access to housing, education, loans and job opportunities. Please review the data below that illustrates the existing racial disparities in Connecticut, New Haven and the Greater New Haven region.

  • Income Inequality

    Black and Other Connecticut residents earn lower wages in the 5 most common occupations in Connecticut. (Note: “Other” represents Latinx, Native American, Pacific Islander, Native Hawaiian, and any other race).

    Data acquired from the Census Bureau’s ACS PUMS 2019 1-Year Estimate via the Data USA portal and from the 2020 Connecticut Neighborhood Profiles by DataHaven (2019)

  • Income Inequality

    25% of New Haven’s population lives at the poverty level. 20%-40% of the total population in the neighborhoods indicated in the chart live at the poverty level.

    Data acquired from the Census Bureau’s ACS PUMS 2019 1-Year Estimate via the Data USA portal and from the 2020 Connecticut Neighborhood Profiles by DataHaven (2019)

  • Intergenerational Wealth

    Black and Latinx Greater New Haven residents are less likely to have sufficient savings and a bank account compared to their White residents. Negative Net Worth means that a person has more liabilities than assets. 27% and 24% of Black and Latinx Greater New Haven residents respectively said they have a negative net worth.

    Data acquired from the Connecticut Wellbeing and Equity Survey by DataHaven

  • Homeownership Rates

    Black and Latinx New Haven residents have about half the rate of homeownership and higher rates of cost-burden than their White New Haven residents. Homeownership rates in the neighborhoods above are half or less than that of the entire state. Comparatively, Cost-burden per neighborhood is nearly double that of the state.

    Data acquired from Access to Homeownership in Greater New Haven by Camille Seaberry of DataHaven (2018) and the 2020 Connecticut Neighborhood Profiles by DataHaven (2019)

  • Access to Institutional Capital

    Over 11 years, the median value of originated mortgage loans in Connecticut have trended downward for all races. However, Black and Latinx applicants have received less loan acceptances even when they have the same income as White applicants. This graph shows the $50k gap between White, and Black and Latinx acceptances.

    Data acquired from Access to Homeownership in Greater New Haven by Camille Seaberry of DataHaven (2018) and the US Census Bureau’s 2018 American Business Survey

  • Access to Institutional Capital

    According to the 2018 Census American Business Survey, out of 2,281 employer firms existing in New Haven, only 84 of them are Black-owned, and 103 of them are Latinxowned, which makes up 8% of total employer firms in New Haven.

    Data acquired from Access to Homeownership in Greater New Haven by Camille Seaberry of DataHaven (2018) and the US Census Bureau’s 2018 American Business Survey

What Solutions Are Possible?

Below are some programs and policies that other cities have used to improve disparities in income inequality, intergenerational wealth, homeownership rates, and access to institutional capital.

Issue Areas Key:

  • Income Inequality

  • Homeownership Rates

  • Access to Institutional Capital

  • Intergenerational Wealth

We want to hear from you!

What is the biggest, persistent challenge that your community or family has encountered due to the pandemic?