Chandler, Mesa among cities where Black Americans fare best economically

Business News | 15 Feb |

Nationwide, when it comes to wealth and personal finance success, Black Americans generally have less. Census data from 2019 shows that the median Black household income is 33% lower than the overall median household income and the Black homeownership rate is 22 percentage points lower than the general homeownership rate. Data on wealth accumulation depicts even starker disparities: Black families’ net worth is 87% lower than that of white families and 33% lower than that of Hispanic families, according to the Federal Reserve’s 2019 Survey of Consumer Finances. But research shows that Chandler and Mesa among top cities where Black Americans fare best economically

Though the national picture is less than encouraging, economic outcomes for Black Americans are better in some places than others. In this study, we determined the cities where Black Americans fared best economically leading up to 2020. We compared 129 cities across six metrics: median Black household income, Black homeownership rate, Black labor force participation rate, poverty rate for Black residents, percentage of Black adults with a bachelor’s degree and percentage of business owners who are Black. For details on our data sources and how we put all the information together to create our final rankings, check out the Data and Methodology section below.

Key Findings

• Six of the top 10 cities are located in Texas, Florida and North Carolina. These cities are Grand Prairie and Garland, Texas; Pembroke Pines and Miramar, Florida; and Charlotte and Durham, North Carolina. In both of the Texas and Florida cities, the median Black household income is higher than $61,000 and the Black homeownership rate is 46% or higher – compared to study-wide averages of about $43,000 and 35%, respectively. Meanwhile, Charlotte and Durham rank particularly well for our education and metro area business ownership metrics. In both North Carolina locales, more than 30% of Black adults have their bachelor’s degree and at least 3% of businesses are Black-owned – compared to study-wide averages of about 23% and 2%, respectively.

• Preliminary 2020 estimates show that Black Americans have been disproportionately affected by not only the health impacts of COVID-19, but also its corresponding economic effects. The regional economic effects of COVID-19 on Black Americans are difficult to determine due to insufficient localized data, but the available national data paints a grim picture: Bureau of Labor Statistics (BLS) data shows that as of December 2020, the Black unemployment rate was 3.9
and 3.2 percentage points higher than the white and overall unemployment rates, respectively. Additionally, the Black labor force participation rate was about 2.0 percentage points lower than both white and overall participation rates.

Data and Methodology

To find the cities where Black Americans fare best economically, SmartAsset looked at the 200 largest cities in the U.S. Only 129 of those cities had complete data available, and we compared them across six metrics:

• Median Black household income. Data comes from the Census Bureau’s 2019 1-year American Community Survey.

• Black homeownership rate. This is the number of Black owner-occupied housing units divided by the number of Black occupied housing units. Data comes from the Census Bureau’s 2019 1-year American Community Survey.

• Black labor force participation rate. This is for the Black population 16 years and older. Data comes from the Census Bureau’s 2019 1-year American Community Survey.

• Poverty rate for Black residents. Data comes from the Census Bureau’s 2019 1-year American Community Survey.

• Percentage of Black adults with a bachelor’s degree. This is for the Black population 25 years and older. Data comes from the Census Bureau’s 2019 1-year American Community Survey.

• Percentage of business owners who are Black. This is the number of Black-owned businesses with paid employees divided by the number of businesses with paid employees. Data comes from the Census Bureau’s 2018 Annual Business Survey and is at the metro area level.

To determine our final list, we ranked each city in every metric, giving a full weighting to all metrics. We then found each city’s average ranking and used the average to determine a final score. The city with the highest average ranking received a score of 100. The city with the lowest average ranking received a score of 0.

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