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Report shows wealth gains for all races here and in nation’s 200 largest metros
In Boston, Worcester, and Providence, all groups experienced at least $117,000 growth.
An April 19 report from the National Association of Realtors indicates wealth gains among homeowners in America’s 200 largest metropolitan areas, including several New England metros.
The Wealth Gains by Income and Racial/Ethnic Group Report found that in metro Boston, Asian households experienced the highest wealth gains in the past decade, followed by Black, Hispanic, and white ones, in that order.
The report uses Census data from 2012 to 2022 to find the average value of households among different racial and ethnic groups. In metro areas, wealth gains can be attributed to ever-increasing home prices; in more rural areas, gains can be due to an increased number of homeowners per demographic, according to the report.
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It defines low-income households as those earning no greater than 80% of the area median income, middle-income households as earning more than 80% but less than 200%, and upper-income households as earning higher than 200%.
Boston’s wealth gains exceed the national average because home prices in the city have increased at faster rates, said Nadia Evangelou, NAR senior economist and director of real estate research. For example, low-income owners in Boston gained $180,000, while nationally, homeowners in that same economic bracket saw their wealth grow by only $98,910.
There are fewer Black households in Boston than the national average, however. Evangelou noted that while the Black population is rising in the United States, the homeownership rate in the nation increased by just 0.4% — out of pace with other racial and ethnic groups.
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“It’s good to see that more Black Americans own a home compared to 10 years ago, but we need to see a faster increase in homeownership rates,” Evangelou said.
Here’s how homeowners of different races and ethnicities have gained household wealth in several New England metros over the past 10 years:
| Metro | Black | Asian | Hispanic | White |
|---|---|---|---|---|
| Boston-Cambridge-Newton | $289,320 | $299,530 | $246,020 | $245,240 |
| Manchester, N.H. | $57,390 | $246,390 | $191,770 | $94,540 |
| New Haven-Milford, Conn. | $112,780 | $54,590 | $73,210 | $75,620 |
| Norwich-New London, Conn. | $89,040 | $31,580 | $49,740 | $95,370 |
| Providence-Warwick, R.I. | $176,140 | $185,100 | $191,770 | $162,350 |
| Worcester | $234,280 | $240,830 | $141,130 | $147,540 |
| U.S. | $115,430 | $239,430 | $162,450 | $138,430 |
Since 2012, all Providence homeowners gained wealth, with Hispanic homeowners seeing the biggest increase ($191,770), followed by Asian households, Black, and then white.
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In Worcester, Asian homeowners saw the largest wealth gain ($240,230), followed by Black households, white, and then Hispanic.
The report shows that everybody can build wealth through homeownership, Evangelou said. “Although the amount varies by income and racial ethnic group, everybody was able to accumulate a substantial amount of wealth due to home price appreciation in the last decade.”
For example, Black homeowners in the United States have experienced the smallest wealth gains in the past 10 years but still accumulated $115,430.
Evangelou said homeownership is one of the key ways families can build generational wealth. Because fewer low-income households and households of color own their homes, it’s more difficult to build generational wealth through homeownership among these families, she said.
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