Latinos account for nearly one fifth of the U.S. population. They contribute over $4.1 trillion annually to the U.S. GDP. Yet, their economic reality is starkly different from that of white households.
As of 2022, the median Latino household holds less than one quarter of the wealth of white households. This disparity is not new but has deep historical roots.
In 1989, the median Latino household held about seven cents for every dollar of wealth owned by white households. By 2022, this figure rose to just 22 cents. While this shows some progress, it remains a significant gap.
Latino households are less likely to own high-value, appreciating assets such as homes and retirement accounts. Discriminatory policies have limited their access to land and housing—key components for building wealth in the U.S.
U.S. immigration laws have created unequal pathways to legal status. This has further restricted wealth-building opportunities for many Latino communities.
Moreover, Latino workers have historically faced barriers that keep them in low-wage, exploitative jobs. Social benefit programs often limit their access, contributing to financial instability.
Education segregation has also shaped lower educational attainment for Latino communities. This cycle perpetuates economic challenges across generations.
The older American demographic holds a significant portion of national wealth today—74 percent of American wealth is held by those over age 55, up from 56 percent in 1989. Meanwhile, the share of wealth held by Americans under 40 has shrunk from 12 percent to just 6.6 percent since then.
