African American household wealth reached $7.1 trillion in 2024, marking a half-trillion-dollar increase that signals both progress and persistent structural challenges in the nation’s racial wealth landscape. While the topline growth appears encouraging, the composition reveals a familiar pattern: wealth remains overwhelmingly concentrated in illiquid assets, with real estate and retirement accounts comprising nearly 60% of total holdings. The year’s most dynamic growth came from corporate equities and mutual fund shares, which surged 22.2% to $330 billion—yet this represents less than 5% of African American assets and a mere 0.7% of total U.S. household equity holdings, underscoring how far removed Black households remain from the wealth-generating mechanisms of capital markets.
The liability side of the ledger tells an equally sobering story. Consumer credit climbed to $740 billion in 2024, now representing nearly half of all African American household debt and growing at more than double the rate of asset appreciation. This shift toward unsecured, high-interest borrowing—particularly as it outpaces home mortgage debt—suggests that rising asset values are not translating into improved financial flexibility or reduced economic vulnerability. What makes this dynamic even more troubling is the extractive nature of the debt itself: with African American-owned banks holding just $6.4 billion in combined assets, it’s clear that the vast majority of the $1.55 trillion in African American household liabilities flows to institutions outside the community. This means that interest payments, fees, and the wealth-building potential of lending relationships are being systematically siphoned away from Black-owned financial institutions that could reinvest those resources back into African American communities, perpetuating a cycle where debt burdens intensify even as the capital generated from servicing that debt enriches institutions with no vested interest in Black wealth creation.
ASSETS
In 2024, African American households held approximately $7.1 trillion in total assets, an increase of more than $500 billion from 2023, with corporate equities and mutual fund shares recording the fastest year-over-year growth from a relatively small base, even as wealth remained heavily concentrated in real estate and retirement accounts—together accounting for more than 58% of total assets.
Real Estate
Total Value: $2.24 trillion
Definition: Real estate is defined as the land and any permanent structures, like a home, or improvements attached to the land, whether natural or man-made.
% of African America’s Assets: 34.2%
% of U.S. Household Real Estate Assets: 5.1%
Change from 2023: +4.3% ($100 billion)
Real estate remains the dominant asset class for African American households, accounting for over one-third of total household assets. While modest appreciation continued in 2024, ownership remains highly concentrated in primary residences rather than income-producing or institutional real estate, limiting liquidity and leverage potential.
Consumer Durable Goods
Total Value: $620 billion
Definition: Consumer durables, also known as durable goods, are a category of consumer goods that do not wear out quickly and therefore do not have to be purchased frequently. They are part of core retail sales data and are considered durable because they last for at least three years, as the U.S. Department of Commerce defines. Examples include large and small appliances, consumer electronics, furniture, and furnishings.
% of African America’s Assets: 8.8%
% of U.S. Household Durable Good Assets: 6.2%
Change from 2023: +3.3% ($20 billion)
Corporate equities and mutual fund shares
Total Value: $330 billion
Definition: A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called “shares” which entitles the owner to a proportion of the corporation’s assets and profits equal to how much stock they own. A mutual fund is a pooled collection of assets that invests in stocks, bonds, and other securities.
% of African America’s Assets: 4.7%
% of U.S. Household Equity Assets: 0.7%
Change from 2023: +22.2% ($60 billion)
Defined benefit pension entitlements
Total Value: $1.73 trillion
Definition: Defined-benefit plans provide eligible employees with guaranteed income for life when they retire. Employers guarantee a specific retirement benefit amount for each participant based on factors such as the employee’s salary and years of service.
% of African America’s Assets: 24.4%
% of U.S. Household Defined Benefit Pension Assets: 9.7%
Change from 2023: +7.5% ($40 billion)
Defined contribution pension entitlements
Total Value: $880 billion
Definition: Defined-contribution plans are funded primarily by the employee. The most common type of defined-contribution plan is a 401(k). Participants can elect to defer a portion of their gross salary via a pre-tax payroll deduction. The company may match the contribution if it chooses, up to a limit it sets.
% of African America’s Assets: 12.4%
% of U.S. Household Defined Contribution Pension Assets: 6.0%
Change from 2023: +4.8% ($40 billion)
Private businesses
Total Value: $330 billion
% of African America’s Assets: 4.7%
% of U.S. Household Private Business Assets: 1.8%
Change from 2023: +3.1% ($10 billion)
Other assets
Total Value: $770 billion
Definition: Alternative investments can include private equity or venture capital, hedge funds, managed futures, art and antiques, commodities, and derivatives contracts.
% of African America’s Assets: 10.9%
% of U.S. Household Other Assets: 2.7%
Change from 2023: +6.9% ($50 billion)
LIABILITIES
“From 2023 to 2024, African American household liabilities rose by approximately $100 billion, with consumer credit, now representing nearly 48% of all liabilities, driving the majority of the increase and reinforcing structural constraints on net wealth accumulation despite rising asset values.”
Home Mortgages
Total Value: $780 billion
Definition: Debt secured by either a mortgage or deed of trust on real property, such as a house and land. Foreclosure and sale of the property is a remedy available to the lender. Mortgage debt is a debt that was voluntarily incurred by the owner of the property, either for purchase of the property or at a later point, such as with a home equity line of credit.
% of African America’s Liabilities: 50.3%
% of U.S. Household Mortgage Debt: 5.8%
Change from 2023: +4.0% ($30 billion)
Consumer Credit
Total Value: $740 billion
Definition: Consumer credit, or consumer debt, is personal debt taken on to purchase goods and services. Although any type of personal loan could be labeled consumer credit, the term is more often used to describe unsecured debt of smaller amounts. A credit card is one type of consumer credit in finance, but a mortgage is not considered consumer credit because it is backed with the property as collateral.
% of African American Liabilities: 47.7%
% of U.S. Household Consumer Credit: ~15.0%
Change from 2023: +10.4% ($70 billion)
Other Liabilities
Total Value: $30 billion
Definition: For most households, liabilities will include taxes due, bills that must be paid, rent or mortgage payments, loan interest and principal due, and so on. If you are pre-paid for performing work or a service, the work owed may also be construed as a liability.
% of African American Liabilities: 2.0%
% of U.S. Household Other Liabilities: ~2.8%
Change from 2023: 0% (No material change)
Source: Federal Reserve
HBCU Money 