BOSTON — A comprehensive statewide report released by the Federal Reserve Bank of Boston has exposed a staggering racial wealth gap in Massachusetts, revealing that Latino families hold a median net wealth of just $1,200.
The landmark study, titled “Family Wealth in Massachusetts,” indicates that despite the Commonwealth ranking near the top of national measures for median income, economic security remains profoundly stratified along racial lines. The findings show that the median net wealth of White families in the state stands at $549,200—an amount 458 times greater than that of typical Latino households.
The data stems from the 2025 Massachusetts Economic Conditions and Household Opportunity Survey, or Mass ECHOS. Compiled in collaboration with The Boston Foundation, the Barr Foundation, and the Eastern Bank Foundation, researchers collected detailed asset and liability profiles from 5,018 randomly selected households across the state. The survey serves as an expansive follow-up to the Boston Fed’s controversial 2015 “Color of Wealth” study, which faced criticism for a small sample size after finding that U.S.-born Black households in the city of Boston proper had a median net worth of just $8. The new, larger data set expands the lens statewide and illustrates that immense disparities cross local municipal boundaries.
According to the report, median family net wealth across major demographic cohorts follows a stark trajectory: White families hold $549,200; Asian American, Native Hawaiian, & Pacific Islander (AANHPI) families hold $305,000; Black families hold $7,800; and Latino/Hispanic families sit at the bottom with $1,200.
The report underscores that deep systemic cracks leave communities of color uniquely vulnerable to economic shock. According to the data, 40% of Latino families and 31% of Black families in Massachusetts hold zero or negative net wealth, meaning their collective debts outpace the value of any assets they own. By comparison, only 1 in 9 White families face a negative net worth. Researchers pointed to the state’s severe housing divide as a primary structural anchor. The state median net wealth for homeowners climbs to $790,500, whereas renters possess a median net wealth of just $1,500. Advocacy groups like the Massachusetts Budget and Policy Center (MassBudget) noted that generations of discriminatory practices, such as historic redlining and exclusionary covenants, have locked Black and Latino residents out of homeownership, blocking the primary vehicle Americans use to build and inherit wealth.
This lack of asset equity translates directly into immediate household instability. More than a third of families statewide confessed they could not cover a sudden $400 emergency expense using immediate cash or liquid savings. For Black and Latino households, that emergency anxiety hits a critical two-thirds of all families surveyed.
The Mass ECHOS dataset also documents vast geographic wealth disparities, demonstrating that families living in the state’s Gateway Cities lag far behind the affluent Greater Boston core. The report found that the median family net worth in Gateway Cities—the 26 municipalities eligible for state economic development incentives due to lower education and income averages—is just $101,500. This is less than a third of the $373,000 median wealth found in Greater Boston, even though half of those Gateway Cities technically sit within the Greater Boston region. Furthermore, one-in-four families in Gateway Cities hold zero or negative net wealth, and a staggering 50% of Gateway City respondents reported they cannot access $400 in cash to pay for an emergency expense.
“Having wealth is the ability to financially navigate an unexpected job loss, a serious illness, or buy and/or maintain a home,” noted Ali Noorani, CEO of the Barr Foundation, in a public statement regarding the data. “The surest way to reduce the wealth gap is by working together across sectors and ideologies to remove barriers and improve access to capital.”
In response to the troubling indicators, local civic leaders, philanthropies, and state policymakers are utilizing the Mass ECHOS data to push forward immediate structural remedies. The coalition of foundations backing the study emphasized a collective call to action to dismantle the explicit barriers keeping lower-income residents and communities of color trapped in debt cycles. Initial policy recommendations focus heavily on targeted public-private partnerships to bridge the capital divide. Local strategies under review include expanding state-backed down-payment assistance programs to specifically target the deep renter-to-homeowner asset divide, implementing municipal small business lending units modeled after successful Boston initiatives to prioritize minority and immigrant entrepreneurs, expanding access to higher education and debt-free degree paths, and launching collaborative initiatives to shore up workplace retirement plans and IRAs for low-wage earners who currently lack emergency safety nets.
The Boston Fed’s report highlights that the state’s average family wealth technically sits over $1 million, though that metric is heavily distorted by extreme concentrations of wealth among the state’s wealthiest tiers. For the typical, baseline Massachusetts household across all backgrounds, the true median net wealth anchors at $374,000.