What the Racial Wealth Gap Means for U.S. Cities

Wednesday, August 10, 2016
Next City

"An early 2016 report out of Los Angeles, another majority-minority city, found that wealth differentials across racial groups are far more pronounced than income differentials, leaving communities of color particularly vulnerable in the case of emergencies, unemployment or other unexpected costs." 

"That study, 'The Color of Wealth in Los Angeles,' also found a disconcerting hurdle to families of color building wealth. 'Because communities of color often have higher-cost debt and higher debt-to-income ratios, they are more likely to be denied credit and their ability to build assets is limited,' the report says. 'Although, research has shown that when blacks have similar credit scores as whites, they are still more likely to be denied credit. This contributes to lower asset ownership and lower asset values when compared with white households.'"

"The Color of Wealth in Los Angeles" is a joint publication of the Samuel DuBois Cook Center on Social Equity, The New School, the University of California, Los Angeles and the Insight Center for Community Economic Development. 

Read more: https://nextcity.org/daily/entry/racial-wealth-gap-report-minority-majority-cities