A new report which focuses on the trends in wealth accumulation from 1983 to 2013, as well as projections of what the next 30 years might bring, was released this month. The findings of the report explain that wealth inequality may be an even greater concern than income inequality.
According to the research, the average wealth of Latino households was $58,000 in 1983, and $98,000 in 2013. With the burst of the housing bubble, the average Latino household lost four times more wealth than the average white household did between 2007 and 2010.
According to the report’s projections, if the Latino households were to “repeat the past three decades, they would see their wealth increase by only $2,254 a year, for a total of about $165,000.” Furthermore, projections show that “even if we were on a path toward racial wealth equality…it would take average Latino families 84 years to amass the same amount of wealth White families have today – that’s the year 2097.”
Maybe their projections are right and it will take a long time for Latino families to recover their wealth, but for the last two days we have been talking about how homeownership can help families create that wealth. An increase in net worth, as well as the appreciation of home prices over the next 5 years, will help Latino families amass wealth much earlier than the year 2097.
If there is one thing that we can learn from history, it is that we cannot repeat the same mistakes! It is important, as a community, to look into the future and help our future generations to accumulate that wealth. One of the first steps we can take is to own our own home!
If you are not a homeowner, call your local real estate professional to find out what opportunities are available to you so that you can start creating your family wealth today!