The Stark Reality of Chicago's Racial Wealth Gap


Chicago’s racial wealth gap is one of the largest in the country, with Black families holding a fraction of the wealth compared to their white counterparts. This gap isn’t just a statistic—it’s a barrier to economic opportunity, financial security, and generational wealth for many.

What does Chicago's racial wealth gap look like?
Net Worth

The median net worth of Black households in Chicago is virtually $0, compared to $210,000 for white households.* 

This stark contrast highlights the vast economic divide between racial groups in the city.

Retirement Savings

Fewer than 12% of Black households have retirement savings in the form of stocks, IRAs, or annuities, compared to 40% of white households.* 

This lack of retirement savings exacerbates financial insecurity in later years. 

Educational Attainment and Wealth

Black families with a Bachelor's degree or higher have significantly lower wealth ($34,000) compared to white families with the same level of education ($294,000).* 

Even when accounting for higher education, racial wealth disparities persist.

Root Causes of Chicago’s Wealth Disparities

The wealth gap didn't happen by chance. It is rooted in a history of systemic exclusion—from access to banking services to homeownership decline, and the inability to pass down wealth from generation to generation.

Access to Banking Services

Lack of access to traditional banking services limits the ability of Black families to save, invest, and build credit. It also prevents access to financial products that could help them accumulate wealth.

Stat: About 13.5% of Black households in Chicago are unbanked, compared to just 3% of white households, which severely limits access to credit, savings, and investment opportunities.**

Homeownership Decline and Disinvestment

Homeownership is one of the most effective ways to build wealth, and the decline in Black homeownership rates directly limits wealth-building opportunities. The undervaluation of Black-owned homes and higher foreclosure rates in Black neighborhoods further exacerbate this problem.

Stat: Between 2010 and 2019, Black neighborhoods in Chicago lost 13.6% of owner-occupied households.***

Intergenerational Wealth Transfer

The lack of intergenerational wealth transfer, due to the historic and ongoing systemic exclusion of Black families from wealth-building opportunities, ensures that each generation faces the same financial hardships. This is a critical reason why the racial wealth gap persists.

Stat: 4% of Black families in Chicago received any inheritance, compared to 20% of white families.*


*June 2024. "The Color of Wealth in Chicago." The Institute on Race, Power and Political Economy at The New School.

**Federal Deposit Insurance Corporation (FDIC), "National Survey of Unbanked and Underbanked Households," 2019.

***Chicago Urban League, & Loyola University Institute for Racial Justice. (2023). State of Black Chicago Report. Chicago Urban League.


Our Role in Closing the Wealth Gap
NetUP is committed to addressing these systemic barriers by empowering Black individuals and families with financial literacy, wealth-building strategies, and community support.

Help Us Bridge Chicago's Wealth Gap