As New York State Considers Establishing Commission on Reparations, New Report from NYC Comptroller Lander Details Deep Racial Wealth Gap

New York, NY — As New York State considers establishing a commission on reparations, New York City Comptroller Brad Lander released a first-of-its kind report shedding light on stark racial wealth disparities in New York State and City. The report reveals racial disparities in net household wealth, home values, retirement savings, investment income, and student debt.

Earlier this year, the New York State Senate (S1163A sponsored by Senator James Sanders, Jr.) and the State Assembly (A7691 sponsored by Assemblymember Michelle Solages) passed bills to establish a state-level commission on reparations. The legislation, which is currently under consideration by Governor Hochul, is part of a wave of efforts around the country to confront the lasting impact of slavery and institutional racism on Black families’ ability to achieve economic security and build wealth.

“The data in our report show – in black and white – the persistence of a stark racial wealth gap in New York,” said Comptroller Brad Lander. “The median household net worth of white New Yorkers is nearly 15 times that of Black New Yorkers – 15 times. The average white New York high school graduate has net worth three times greater than the average Black college graduate. These numbers add up to opportunities denied to millions of Black New Yorkers, wealth disparities perpetuated across generations, and a poorer city and state for all of us since inequality holds back economic growth for all.”

The report, Scoping the Racial Wealth Gap in New York State and City, comes out on the anniversary of the ratification of the 13th Amendment. The report reveals findings based on analyses of data from the 2021 Survey of Income and Program Participation and the 2017-2021 American Community Survey. Key points from the report include:

• Wider Racial Wealth Gap in New York State: White households in New York State have a median household net worth of $276,900, nearly 15 times greater than Black households with net household worth of $18,870. New York State has a wider racial wealth gap than in the United States as a whole, where the median white household net worth is $291,250 and the median Black household net worth is $31,370—a ratio of 9.3.
• Educational Disparities: Discrepancies in wealth persist across educational levels in New York State. White New Yorkers with only a high school degree have a net worth over three times greater than Black New Yorkers with a bachelor’s degree. Among those with bachelor’s degrees in the state, 54% of Black New Yorkers have student debt compared to 28% of White New Yorkers.
• Homeownership Inequities: Homeownership, historically a primary means for wealth-building, remains elusive for Black families in New York State. While 63% of white New Yorkers own their homes, only 24% of Black New Yorkers do. In addition, the median Black New York City homeowner’s home value is significantly lower than the median White New York City homeowner.

The report’s findings underscore the historical impact of institutional racism in areas such as housing, education, employment, and financial systems. They also suggest the possibility for a “solidarity dividend” – benefit to the city and the state as a whole – of reducing racial disparities. Narrowing wealth disparities, particularly through increased homeownership opportunities, could lead to stronger local economies, enhanced public safety, and greater community cohesion.

The findings of the report support the establishment of a commission to study these inequities and potential reparations, echoing the legislative efforts of New York Senator James Sanders and New York State Assembly Member Michaelle Solages.

“On this day dedicated to justice, I applaud New York City Comptroller, Brad Lander for issuing this historic report. On this day 158 years ago, the US Congress ratified the 13th amendment. By doing so, they declared that the enslaved black population to be free. On this day, Comptroller Brad Lander issued a report on the freedom of the New York Black population. As disturbing as this data is, it is better that we deal with a bitter truth than a sweet lie. The truth is that there appears to be a structural impediment preventing the African American population from achieving the American dream. This worthy population will not struggle with this condition alone. The legislators in Albany have seen the burdens of their fellow citizens and are rushing to their aid. This report will serve as a fountain of knowledge as legislators seek to ensure equality of opportunity in New York State. I applaud Brad Lander for this thoughtful, insightful, horrific yet hopeful report,” said Senator James Sanders Jr. 

“As the Caucus Chair, I am deeply troubled but not surprised by the stark racial wealth disparities revealed in Comptroller Brad Lander’s report. This report serves as another call to action for our state. On the anniversary of the ratification of the 13th Amendment, let us commit to exploring reparations and uplifting those left behind. New York has the opportunity to set a standard for harm-based reparations, empowering communities to shape the way forward. It is imperative for our collective advancement that we address the impacts of slavery, Jim Crow, segregation, and mass incarceration. We cannot continue to allow systemic racism to stifle our economic potential,” said Assemblywoman Michaelle C. Solages, Chair of the New York State Black, Puerto Rican, Hispanic, and Asian Legislative Caucus.

Read the Racial Wealth Disparities report.

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