The Hispanic Wealth Project (HWP) was born out of the devastating impact of the Great Recession when Latinos lost up to two-thirds of their median household wealth. NAHREP saw the need to put a roadmap in place to prevent future economic shocks for Latinos.
In 2013, the SCF reported that Hispanic median household wealth was $17,500, when adjusted for inflation. To guide that goal, the HWP produced a blueprint
outlining three primary areas of focus, along with a series of targeted component goals for building wealth: increasing homeownership, scaling small businesses, and diversifying financial assets.
The good news is that Hispanic household wealth has increased by an amount that exceeded a goal established in 2014. According to SCF data, Hispanic median household wealth reached $61,600 in 2022. Increasing at a faster rate than any racial or ethnic group. Changes from 2013-2022 (in 2022 inflation-adjusted dollars):
- Hispanics: 3.5x
- Non-Hispanic whites: 1.6x
- Blacks: 2.7x
- Other/multiple races: 2.5x
- General population: 1.9x
Since the publication of the blueprint, NAHREP and HWP have published seven State of Hispanic Wealth Reports
(SHWR), starting with the inaugural edition in 2016, plus the most recent report on The Drivers of Wealth in 2023.Drivers of Wealth
, part one of a two-part series for the 2023 State of Hispanic Wealth Report, considers how each of the three HWP pillars—homeownership, business ownership, and financial assets—drive the accumulation of wealth.
Homeownership, business ownership, and financial assets all impact how individuals and families build wealth and have potential “multiplier” effects on net worth. This report first considers how age and education influence income and wealth. It then explores the correlations between homeownership, business ownership, and financial assets and household wealth.
Part two of this report will analyze updated household wealth data from the Federal Reserve, further considering where the Hispanic community stands in relation to the HWP goals and examining the impacts of the COVID-19 pandemic on Latino net worth.