Business
The Chicago Urban League is sounding the alarm on the widening racial wealth gap in its new report, “The State of Black Chicago.”
It draws from research from the New School’s Institute on Race, Power and Political Economy, which found that in 2024 the median net worth for Black Chicago-area households was zero dollars — compared to $210,000 for White households.
The Urban League is now calling for a plan of action to help Black communities build wealth. The report recommends additional grants and funding opportunities for small businesses, workforce development and training programs, homeownership assistance, and expanded health access, among other things.
“It’s time to stop talking just about the disparities and focus on solutions,” said Calmetta Coleman, the Chicago Urban League’s chief operating officer. “Really thinking about how to increase homeownership, which is one of the key paths to wealth building, as well as thinking about investments and starting our own businesses and really not leaving that on the individual to do but thinking about how can institutions and organizations collaborate on solutions.”
Coleman said community outreach and education are key to work toward progress on addressing the disparities. The Urban League is working in partnership with Kinexx and Ani Real Estate to expand homeownership access in Black communities. It is also working to promote Kredit Quest, a mobile app that rewards users for expanding their financial knowledge.
Rendel Solomon, a financial advocate and founder of InHeirit, an estate planning platform, said he has witnessed firsthand the barriers that come with pursuing economic mobility. After pursuing careers in engineering and private equity, the West Garfield Park native began teaching financial planning to students in schools and through the Urban League to help bridge the economic gap that starts at a young age. He said many of the barriers to wealth building that Black communities experience are also tied to systemic obstacles to securing education, jobs, housing and food.
“You cannot deal with one of these issues without addressing the other issue,” Solomon said. “You can’t just say, ‘Go invest,’ if people don’t have a place to live. You can’t simply say, ‘Go get a job,’ if the market is not supportive of what it is that they do or the talent that they have. We can’t simply say, ‘Go buy a house,’ if they’re trying to figure out what to eat. You can’t simply say, ‘Go to work,’ if your health is ailing, which means there are certain jobs you maybe can’t do.”
The report comes amid growing concerns about the impact of federal cuts to Medicaid, HeadStart and many other programs that serve as a lifeline for Black families living in poverty. President Donald Trump takes aim at Chicago for its policies on immigration and diversity, equity and inclusion just as state and city policymakers are under increased pressure to come up with funds to support the types of programs the Urban League calls for.
Demond Drummer is the director of strategy at the Institute on Race, Power and Political Economy. Drummer, who used to work in Englewood and now lives in South Shore, said local reforms are needed to change how the city addresses poverty and wealth gaps among Black Chicagoans. He said that local policies such as guaranteed income programs and baby bonds — or publicly funded trust fund accounts for children born into poverty — would allow for community change by investing directly in individuals.
“And what we’re going to get is shiny buildings in the hood, but people are still living in poverty and can no longer afford to live there,” Drummer said. “That is the way we do neighborhood development in Chicago right now. What we need is investing in people directly, and that’s what’s going to turn Chicago around.”
