*Black American households saw their median net worth drop 25% between 2022 and 2025, even as other major racial groups grew wealthier. The setback hits families already facing deep financial disparities.
Algernon Austin, a senior research fellow at the Center for Economic and Policy Research, analyzed newly released Federal Reserve data. His findings, also published by CounterPunch, show Black households’ median wealth fell from $49,100 to $36,800, a $12,300 drop over three years.
The gap between Black households and the national median also widened, reaching $179,100 in 2025, up from $162,000 in 2022.
Median wealth reflects the midpoint of household net worth, or assets minus debts. Unlike averages, it isn’t skewed by exceptionally wealthy families.
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The racial comparisons show how far Black households have fallen behind. Asian American households recorded the highest median net worth at $677,600, followed by White households at $332,100. Hispanic households reached $79,600, more than double the Black median. All three groups gained wealth during the period, according to Austin.
The decline also raises questions about the assets Black families rely on to build long-term security. CEPR pointed to falling values of homes, vehicles, and retirement accounts as possible contributors. The share of Black households holding nonfinancial assets also slipped from 81% in 2022 to 78.4% in 2025.
That matters because wealth offers resources beyond a paycheck. Savings, property and retirement funds can help families weather emergencies, cover major expenses and plan for the future.
Austin also criticized the Trump administration’s approach to racial economic inequality, arguing its priorities offer little hope of reversing the decline. He suggested Black Americans may need help from state and local governments and nonprofits instead. His criticism is a policy assessment, not a finding that the administration caused the three-year decline.
The figures come from the Federal Reserve’s 2025 Survey of Consumer Finances, which tracks household finances nationwide.
For Black Americans, the data point to a widening racial wealth divide and a typical household with fewer resources than three years ago.
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