Building Black wealth through community real estate

November 9, 2023

Editor’s note: Thank you for reading the Brookings Brief! We are going on a short hiatus for the Veterans Day holiday in the United States. Please look out for the next edition on Monday, November 13.

Ownership of commercial real estate—including retail shops, downtown offices, warehouses, and other kinds of income-generating property—is concentrated in the hands of a few and is very unequal by race. The average white household owns $34,000 of commercial real estate, compared to just $3,600 for the average Black household.

An important wealth building opportunity for Black Americans is being missed, Lyneir Richardson, Tracy Hadden Loh, and Andre M. Perry argue. In a new report, they examine the extent of the problem and share a new project to support communities as they attempt to “buy back the block.”

A closer look at the data

The undervaluation of majority-Black ZIP codes results in aggregate wealth losses of $171 billion in retail space for the owners of these properties, the authors find.

Veterans and democracy

The rise of deep political polarization, in tandem with a concerning decline in civics knowledge, poses substantial challenges to American democracy and national security. In this climate, military veterans can play a critical role in fostering an atmosphere of collaboration.

To learn more about how veterans bridge divides and strengthen civic knowledge in the United States, watch our recent event.

The conclusions and recommendations of any Brookings publication are solely those of its author(s), and do not reflect the views of the Institution, its management, or its other scholars.