Wealth Surged in the Pandemic, but Debt Endures for Poorer Black and Hispanic Families [REPORT]

By Rakesh Kochhar and Mohamad Moslimani

The economic downturn caused by the COVID-19 pandemic put the financial security of U.S. households at risk. The initial shock caused about 25 million workers to lose their jobs within three months, from February to April 2020, and it took about two years for the nation’s employment level to fully recover. Workers’ earnings also took a hit as consumer prices began to increase sharply in 2021.

Even so, American families made strong financial gains during the pandemic. The typical U.S. household saw its wealth increase by 37% from 2019 to 2022, after inflation, according to a recent report from the Board of Governors of the Federal Reserve System. Wealth, or net worth, is the difference between the value of assets owned by households and their debt level, and it is a key indicator of financial security.

Our new analysis examines changes in the wealth of poorer and richer families during the pandemic. We also focus on differences within and across racial and ethnic groups on these and other dimensions.

Related: Key facts about the wealth of immigrant households during the COVID-19 pandemic

We use the latest Survey of Income and Program Participation (SIPP) data from the U.S. Census Bureau. Its larger sample size – about four times that of the Federal Reserve’s Survey of Consumer Finances – allows for a deeper analysis of the well-being of demographic groups.

To download report, CLICK HERE.