The wealth gap between whites and Hispanics has increased to its widest in 25 years, according to new analysis of Census data by the Pew Research Center. We’re talking a 20-1 ratio between whites and blacks, and an 18-1 between whites and Hispanics. Like so many things, it comes down the the housing crisis.
While folks of all creeds and colors made bad decisions that boosted the mortgage bubble, the mortgage meltdown hit minorities harder because most of their wealth was tied up in their house. Whites are more likely to have more diverse portfolios and invest in the stock market. Unlike Main Street, Wall Street has been on the upswing lately. Meanwhile, home prices remain depressed and it will be a long time before they even hit the numbers on their historical, natural growth curve again. Even still, the findings put out by the Pew Research Center are startling.
I believe probing the data would reveal that another factor in how the housing crisis harmed minorities more than whites is that minorities were disproportionately pushed into riskier mortgages with higher chances of blowing up, even when they qualified for safer mortgages.
Wealth Gaps Rise to Record Highs Between Whites, Blacks, Hispanics [Pew Research Center]