The colorof wealthmiami
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In Miami it is notable that communities of color– specifically Black Americans, Afro-Caribbean groups and Latinxs communities– outnumber non-Hispanic Whites. The Color of Wealth in Miami study found that asset inequality across racial and ethnic groups likely accounted for more of the racial wealth gap in the Greater Miami area than debt. When disaggregating Miami Latinx communities by race, the study found that among Latinx groups, race appeared to have some impact on socioeconomic outcomes. By comparison, ancestral origin played a much smaller role in determining socioeconomic outcomes when examining those who self-identify as racially Black.
Wealth matters for building an equitable and prosperous Miami region. Despite the importance of wealth for economic security and mobility, wealth is rarely the target of policy solutions. And that needs to change.
How unequal is wealth in the greater Miami area?
Assets: A major driver of wealth inequality in the greater Miami area
Assets are key to understanding not only peoples’ current wealth, but their ability to hold onto and grow their resources. Someone who has a large store of liquid assets is better able to weather financial shocks and emergencies. People who own their homes and own stock are better able to grow their wealth. Significant racial disparities exist when considering total assets, liquid assets, stock ownership and homeownership. White families in Miami have higher rates of asset ownership and median asset values across the board.
Assets and financial well-being: Caribbean Black
- Select a race/ethnicity
Miami
Median
Total assets
$14K
Median
Liquid assets
$2.5K
Percent with
Liquid assets
75%
Percent who
Own stock
9%
Percent who
Own their homes
62%
Debts: A look at inequality
Debt can be an important barrier to a family’s ability to build wealth. For instance, higher education can lead to both higher earnings and burdensome student loan debt.
Debts: Caribbean Black
- Select a race/ethnicity
Miami
Percent with
Student loans
27%
Percent with
Medical debt
15%
Percent with
Unsecured debt
66%
Financial institutions and services
The findings in the study suggest a possible market gap for affordable and appropriate financial services in communities of color. The unfortunate irony is that those who are less likely to be banked may be living paycheck to paycheck and are also unable to save enough money in their accounts to meet the minimum banking requirements. Rather than using a bank for financial transactions, many in these communities may use alternative financial institutions, which can charge higher rate transaction fees than banks for cashier’s checks, money orders, or money wires.
US blacks, Caribbean blacks, Puerto Ricans, South Americans, Other Hispanics and Cubans were far less likely to own checking accounts than White households.
Financial Services, Access and Quality: Caribbean Black
- Select a race/ethnicity
Miami
Percent with
Bank accounts
71%
Percent with
Payday lending usage
11%
About and credits
About the project
The Color of Wealth in Miami study provided an ethnically plural context for comparative analysis, in that communities of color (specifically Black Americans, Afro-Caribbean groups and Latinxs communities) are in aggregate more populous compared to Whites (non-Latinxs). In terms of income, White household income tended to be higher than others, however, differences in wealth accumulation were much larger. The study found that asset inequality across racial and ethnic groups likely accounted for more of the racial wealth gap in the Miami MSA than debt. When disaggregating Miami Latinx communities by race, the study found that among Latinx groups, race appeared to have some impact on socioeconomic outcomes. By comparison, ancestral origin played a much smaller role in determining socioeconomic outcomes when examining those who self-identify as racially Black.
Methodology & data collection
The Color of Wealth Miami data was collected between 2013 and 2014 for the Greater Miami area (Miami-Fort Lauderdale-West Palm Beach, Florida Metropolitan Statistical Area). Various sampling techniques were used to locate and identify an ethnically plural sample consisting of the specifically defined ethnic groups. The techniques included the following: directory-listed landline samples targeted to census tracts where specific ethnic groups were known to reside; cell phone random digit dialing samples drawn from rate centers that covered the targeted ethnic group zip codes; samples drawn from targeted zip codes on the basis of billing address; and the use of surname-based lists targeting specific national origin groups. In the Miami MSA, a total of 614 surveys were completed (inclusive of a category that we labeled NEC or not elsewhere classified, and that was not formally examined in this report.
Credits & thanks
This project was made possible by the generous support of the Ford Foundation’s Building Economic Security Over a Lifetime (BESOL) initiative. We would like to thank the Samuel Dubois Cook Center on Social Equity at Duke University, the Kirwan Institute for the Study of Race and Ethnicity, Glenn College of Public Affairs, Department of Economics and Sociology, College of Arts and Sciences at The Ohio State University, the Federal Reserve Bank of Atlanta and Florida International University.Graphicacy worked with the Institute team to visualize the data from the Color of Wealth Miami study.