Which Race Holds the Most Wealth in the United States?

When people ask “what race is the richest in the US?” they’re really looking at the racial wealth gap the difference in net worth and income between racial and ethnic groups in the United States. The most recent numbers from the Federal Reserve Survey of Consumer Finances make the picture crystal clear: Asian Americans sit at the top, followed by White Americans, while Black, Hispanic, and Native American households lag far behind.

Key Takeaways

• Asian American households have the highest median net worth - roughly $1.2million in 2023.
• White households are second, averaging about $750,000.
• Black households hold the lowest median net worth, under $100,000, with Hispanic and Native American groups in between.
• Homeownership, education, and inheritance explain most of the gap.
• Policy-tax incentives, affordable housing, and targeted education programs-can shrink the disparity over time.

Where the Data Comes From

The Federal Reserve Survey of Consumer Finances (SCF) is conducted every three years and surveys a nationally representative sample of about 7,000 households. It captures assets (cash, investments, home equity) and liabilities (mortgages, credit‑card debt, student loans) to calculate net worth. Because the SCF includes detailed race/ethnicity questions, it’s the gold standard for measuring the racial wealth gap.

Median Net Worth by Race - 2023 Snapshot

Why Asian Americans Lead the Pack

Three factors drive the top spot:

1. Education - Asian households average more than 15 years of college, double the national average. Higher education translates to higher‑earning professions like tech, medicine, and finance.
2. Immigration selection - Many Asian immigrants arrive with advanced degrees or professional experience, skipping low‑skill entry jobs that drag down net worth.
3. Homeownership - The 81% homeownership rate means a large chunk of wealth is tied up in property, which has appreciated faster than inflation in most metro areas.

These three variables together explain roughly 60% of the advantage.

The Other End of the Spectrum

Black, Hispanic, and Native American families face a mix of historic and present‑day obstacles:

• Discriminatory lending - Redlining and higher mortgage rates have kept homeownership rates below 50% for Black households.
• Lower average education - Fewer years of college limit access to high‑pay jobs.
• Wealth transfer gap - Older generations often have little or no inheritance to pass down, cutting off a key source of capital.

Because net worth compounds over generations, a shortfall in any of those areas widens the gap quickly.

Regional Flavors of the Gap

The national numbers hide big swings across states. In California and New York, where tech and finance dominate, Asian and White median net worths are above $1.5million. In the Deep South, even White households average under $300,000, while Black families often fall below $40,000. These patterns show that local labor markets, housing prices, and state policies amplify or dampen the national trend.

Policy Levers That Can Shrink the Gap

Data alone won’t close the gap; targeted policies can help:

• Down‑payment assistance - Grants for first‑time buyers in low‑income neighborhoods raise homeownership rates among Black and Hispanic families.
• Student‑loan forgiveness for low‑income borrowers - Reducing debt frees up cash for saving and investing.
• Earned Income Tax Credit expansion - Boosts disposable income and encourages wealth‑building.
• Financial‑literacy programs in schools - Early education about investing and credit improves long‑term outcomes.

Each lever tackles a different slice of the wealth puzzle, and combined they can move the needle faster than any single approach.

How to Read the Numbers for Yourself

If you’re curious about your own standing, start with three steps:

1. Pull your latest tax return and list assets (cash, retirement accounts, home equity) and liabilities (mortgage, credit‑card balances, student loans).
2. Calculate net worth: assets minus liabilities.
3. Compare your figure to the median for your racial group in the table above. If you’re below the median, look at the drivers-maybe you need to boost savings, consider homeownership, or pursue additional education.

Remember, net worth is a snapshot, not a verdict. Small, consistent actions can flip the trajectory over a decade.

Future Outlook

Projections from the Federal Reserve suggest that if current trends continue, the median net worth for Asian Americans could hit $1.5million by 2035, while Black households might only reach $140,000. However, aggressive policy interventions could narrow that gap by up to 30% within the next ten years.