CHICAGO — The wealth of Hispanic households in the U.S. grew by 42% during COVID-19, according to a new study from Pew Research. However, their net worth remains lower than that of American-born households.
According to the survey, Hispanics saw the most significant increase in their wealth between 2019 and 2021. In 2021, Hispanic households had a median net worth of $48,700, which was substantially higher than the median net worth for a Hispanic household in 2019, which stood at $34,400.
Wealth also increased for Hispanic immigrants who are not U.S. citizens. This group saw 40% growth in their net worth during the study period. According to the data, Hispanic immigrants grew their median net worth from $25,200 to $34,400.
The survey found that U.S.-born Latinos with immigrant parents have more wealth than foreign born immigrant households. In 2021, the average net worth of U.S.-born Latinos was $68,000, which is closer to the median American net worth.
"Household wealth is much higher among U.S.-born people with immigrant parents than among immigrants themselves, suggesting that wealth accumulation is largely completed within one immigrant generation," read an excerpt from the report.
Among non-Hispanic households, the median net worth rose from $153,400 in 2019 to $197,000 in 2021, a 25% increase, according to Pew.
According to the survey, non-Hispanic households have more wealth due to having higher levels of education. However, the survey found key characteristics that signaled immigrant households having a higher net worth.
The length of time an immigrant has lived in the U.S. and their English proficiency also had a sizable impact on net worth, according to the study.
The study found that immigrants who arrived in the U.S. before 1979 grew their network to $261,700 in 2021. Meanwhile, immigrants who arrived after 2009 had a net worth of $37,900. Immigrants who have lived in the U.S. longer have had more time to accumulate wealth than their new counterparts, which explains why they have higher levels of wealth.
It is important to note that in this analysis, Pew Research analyzed wealth among all immigrant races, including Whites, Blacks and Asians, not just Hispanic immigrants. However, it suggests that immigrants can benefit from economic mobility and not just their children.
Immigrants who reported being proficient in English also had higher levels of wealth than their non-English-speaking counterparts. Immigrants with English proficiency had a median net worth of $129,200 in 2021, while immigrants who weren't proficient in English had a median net worth of $37,100.
According to Axios, much of the growth in wealth for Latinos can be attributed to an increase in home value, stimulus checks and reduced spending during the COVID lockdown.
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