The Lewis Mumford Center for Comparative Urban and Regional Research

New York, NY PMSA

Nobody Got Much Richer but Whites Remain Way Ahead of Blacks and Hispanics: Income Gap with Asians Getting Bigger

Median household income increased the most for whites ($3,596) and blacks ($3,557) over the last decade. Hispanics experienced an increase as well but only by about half has much as whites and blacks ($1,637). Asians experienced relatively little change in median household income since 1990. However, income disparities with whites for blacks and Hispanics remain substantial – and in the case of Hispanics have gotten worse. The median household income for blacks is $18,694 less than that for whites, remaining at the 1990 level. The situation for Hispanics is even worse with a median household income that is $25,956 less than whites’. This disparity has increased by $1,959 over the last decade. The median household income disparity between whites and Asians is substantially less at $11,562. However, it is this disparity that has increased the most since 1990 ($3,830).

Minority Neighborhoods Remain Disadvantaged Compared to White Neighborhoods

Disparities in neighborhood income, education, and homeownership levels remain significant, particularly for blacks and Hispanics. In other words, not only do minorities have substantially lower median household incomes, but the places in which they live are disadvantaged compared to where whites live as well.

• Income -- The average white household lives in a census tract with a median income of $58,100, compared to $33,400 for the average black and $32,800 for the average Hispanic. Even Asians lag behind, at $45,000.
• Education -- The average white household lives in a tract where 42% of residents have a college education, compared to 17% in black neighborhoods and 19% in Hispanic neighborhoods. Asians are also disadvantaged, living in areas that average 32% college-educated.
• Homeownership – The average white household lives in a tract where 44.4% of the residents own homes, compared to 27% in black neighborhoods, 21.2% in Hispanic neighborhoods, and 33.6% in Asian neighborhoods.

Neighborhood Inequality Tied to Race Not Class

Findings indicate that even minorities who have achieved higher incomes and moved to the suburbs live in more disadvantaged conditions than their white peers. In fact, the average middle class and suburban middle class black lives in a neighborhood where the median household income has decreased slightly since 1990. The following graphs show the average neighborhood disparity in median household income compared to whites for each group.

Neighborhood Inequality is Getting Worse

Disparities in neighborhood income levels already severe a decade ago have deepened, especially comparing the neighborhoods of the average white resident to that of blacks and Hispanics.

Born in the USA Yields No Gains in Neighborhood Equality

Neighborhood income disparities between native-born whites and native-born blacks and Hispanics have also increased even for those living in the suburbs.

• The average native-born black lives in a neighborhood where the median income is $28,475 less than the average native white’s neighborhood. Controlling for inflation, this disparity has increased by almost $4,000 since 1990. Likewise, the average suburban native-born black lives in a neighborhood where the median income is $34,126 less than the average suburban native white’s neighborhood. Controlling for inflation, this disparity has increased by $5,013 since 1990.
• The average native-born Hispanic lives in a neighborhood where the median income is almost $29,000 less than the average native white’s neighborhood. Controlling for inflation, this disparity has increased by $2,218 since 1990. Likewise, the average suburban native-born Hispanic lives in a neighborhood where the median income is $27,919 less than the average suburban native white’s neighborhood. Controlling for inflation, this disparity has increased by $4,220 since 1990
• The average native-born Asian lives in a neighborhood where the median income is $14,717 less than the average native white’s neighborhood. Controlling for inflation, this disparity has increased by $4,047 since 1990. In contrast, the average suburban native-born Asian lives in a neighborhood where the median income is only $776 less than the average suburban native white’s neighborhood. However, in 1990, the average suburban native-born Asian lived in a neighborhood where the median income was close to $5,000 more than the average suburban native white’s neighborhood.

Click here for more on neighborhood inequality in this metro region.