Updating Boston’s wealth inequity report underscores homeownership gap

By the Editorial Team · Tuesday, August 18, 2026

The Federal Reserve Bank of Boston released an updated report confirming that Massachusetts’s Black households have a median net wealth of $7,800 compared to $549,000 for white households, with homeownership identified as a crucial factor in this disparity. The new study, based on a significantly larger sample and supported by major local organizations, reinforces calls to improve homeownership accessibility as a vital step toward closing racial wealth gaps in the state.

A new comprehensive report from the Federal Reserve Bank of Boston has reaffirmed the significant wealth disparities between Black and white households in Massachusetts, highlighting persistent inequities in homeownership as a major factor. The updated study, released last week, draws on data from more than 5,000 households across the state, a substantial increase from the roughly 400 households surveyed in a 2015 analysis that originally drew widespread attention to the region’s racial wealth gap.

The 2015 report found that the median net wealth of a typical household led by a U.S.-born Black person was just $8, compared to nearly $250,000 for white households. However, the small sample size—only about 70 U.S.-born Black households—limited the study’s statistical robustness. The latest report involves a larger and more representative sample, made possible in part by a $2.3 million survey conducted by Mathematica, a consulting firm. Funding came from several key organizations, including The Barr Foundation, which contributed $1.3 million; The Boston Foundation, which provided $450,000 and managed the contract; the Greater Boston Chamber of Commerce and Eastern Bank, each donating $250,000; and a city resiliency fund created during the COVID-19 pandemic under then-Mayor Marty Walsh, which added $65,000.

According to the updated data, the wealth gap remains vast. The median net wealth for white families across Massachusetts stands at $549,000, while Black families hold a median of $7,800. Disparities grow even more pronounced when comparing homeowners and renters of all races, with median net wealth of $790,000 and $1,500, respectively. This underscores the continued importance of homeownership as a key driver of wealth accumulation.

Industry leaders have weighed in on the findings. Bob Rivers, executive chair at Eastern Bank, said he supported updating the study to enhance its credibility but anticipated the results would be largely consistent with the previous report. Greater Boston Chamber of Commerce CEO Jim Rooney emphasized that the report reinforces the need to make homeownership more accessible, which remains a central focus for the chamber.

Discussions on Boston’s wealth gap date back nearly a decade. In 2015, a meeting between Rooney and then-Mayor Walsh at a local café sparked a shared commitment to addressing racial economic disparities. Initiatives followed, including Walsh appointing Karilyn Crockett as the city’s first chief of equity, the creation of the Black Economic Council of Massachusetts, and the launch of a business equity fund by Eastern Bank. Crockett later transitioned to a consulting role with the chamber while teaching at MIT.

The latest report was catalyzed by renewed interest in racial equity sparked during the Black Lives Matter protests early in the COVID-19 pandemic. Originally budgeted at $1.5 million, the project expanded in scope as additional funds were secured.

Lee Pelton, who became president of The Boston Foundation in 2021 and strongly advocated for updated Fed research, coincidentally saw the report published in his final month before retirement. As stakeholders reflect on decades of efforts, Rivers urged against missing the opportunity to effect meaningful change going forward. “I think the last time we missed the moment,” he said. “We shouldn’t miss the moment again.”

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.