As the nation’s capital, Washington, D.C. has a rich historical and cultural story, currently serving as an international metropolis, a federal working city, and a huge tourist destination. Historically, D.C. and its surrounding suburbs in both Virginia and Maryland have served as a hub for Black culture and wealth, with a sizable population in the city. Despite this, residents of color still see worse economic outcomes than White residents due to historic policies that exploited Black labor and discriminatory practices that restricted people of color from higher wage work and taking part in federal wealth-building policies. 

Capital One and Prosperity Now have collaborated on the Building High Impact Nonprofits of Color DMV project to support and invest in high-impact, BIPOC-led nonprofits in the DMV that advance economic mobility and wealth building. Prosperity Now developed the DMV Racial Wealth Divide Profile to underscore key data trends that illustrate growing racial and ethnic economic disparities in the DMV. These findings will be featured in our upcoming roundtable series of community conversations across the nonprofit, small business, philanthropic, and policy sectors, which take place in Washington, DC beginning in June.  

The DMV area has deeply interconnected labor markets and workforce, with 68% of employees in the city living in Maryland or Virginia, and DC residents working in either VA or MD suburbs. While unemployment rates have fallen, there is still a significant workforce deficit with there being fewer jobs available across the entire DMV which has predominantly affected communities of color. Many of the jobs available in the area hold higher educational requirements that some members of the community do not have. Specifically in D.C., it is still far worse for workers of color with an unemployment rate of 10% which is higher than the national rate of 6%.  

The DMV Racial Wealth Divide Profile finds that households of color experience huge disparities in assets compared to White households in the region. For example, the median income for households of color is $54,000, which is just a third of the median income for White households at $143,000. Additionally, White-owned businesses far surpass BIPOC-owned businesses in both number and size, with almost two-thirds of businesses in the city being White-owned at 62%. While Black-owned businesses make up less than a fifth at 18% of DC businesses, Latino-owned businesses, and Asian-owned businesses each made up less than a tenth of all DC businesses at 7% and 6% respectively. Unfortunately, the COVID-19 pandemic resulted in the closure of many businesses, especially restaurants, deeply impacting businesses owned by people of color.  

The DMV Racial Wealth Divide Profile finds that households of color experience huge disparities in assets compared to White households in the region.

Homeownership rates in the DMV are like national rates at 64%. Half of White households own their own home compared to 31% of Latinos, 35% for Black homeowners, and 40% of Asian residents. These disparities are reflective of a long history of gentrification and displacement of people of color in the area. Shifts in public policies, suburban flight, urban renewal and public transportation have negatively impacted communities of color and often resulted in wealth stripping. In conjunction with these housing issues, the pandemic has derailed much of the recent progress and created additional complications to helping individuals and families stay in homes and healthy, leading to housing insecurity or chronic homelessness for some.  

The new report underscores some of the largest racial economic disparities in the DMV while spotlighting seven local organizations, all led by leaders of color and serving communities of color, that are working to combat racial inequality. As part of Prosperity Now’s Building High Impact Nonprofits of Color Project, Collegiate Directions, HAND, Lift-DC, Marshall Heights Community Development, My Sisters Place, and Safe Sister’s Circle have been working collaboratively to strengthen their ability to serve their communities and share best practices. To stay connected to the Building High Impact Nonprofits of Color DMV project and learn more about upcoming events, join the Prosperity Now Community.