Economy

Why Black Businesses and Homeownership Won’t Close the Wealth Gap

Economic plans like Mike Bloomberg’s assume that boosting black homeownership and entrepreneurs will close racial wealth gaps. New research suggests it won’t.
In Atlanta, a new study found that homes in predominantly black neighborhoods lost value even as homes in predominantly white neighborhoods gained.Chris Rank/Bloomberg

Owning a home and a business has always been central to the American Dream. But recent scholarship has called into question the idea that fulfilling this dream has actually improved African Americans’ quality of life.

For decades, encouraging African-American homeownership and entrepreneurship has been a common proposal for those who want to narrow the racial wealth gap. In a recent prominent example, Michael Bloomberg unveiled a plan in his presidential campaign to bolster economic outcomes for African Americans that banks on these tools.