MA median wealth tops $370K, but 1 in 3 can't cover a $400 emergency

Allison, New Federal Reserve Bank of Boston survey shows median family wealth in the state is over $370,000.

But buried in that headline is a staggering divide.

More than a third of families don't have the $400 in cash for an emergency.

And for Black and Latino households, that jump is nearly two thirds.

What else stands out to you in this data?

The data is really eye-popping when you look beyond that median number.

So the survey found that the 25th percentile of families are earning $10,000.

That means a quarter of the Commonwealth population are earning at or below $10,000.

Meanwhile, the 75th percentile is over $1 million.

That means a quarter of Bay Staters are earning above $1 million.

Wow.

Also looking at how widely wealth can vary based on other factors in the study, whether it's educational attainment, where somebody lives, their age, looking at home ownership.

For example, for homeowners, their median family wealth is over $790,000.

Meanwhile, for renters, their wealth is only $1,500.

Statehouse leaders have talked about closing the racial wealth gap for years, given we already know these disparities existed.

How are lawmakers responding to seeing it spelled out like this? Is anyone on Beacon Hill surprised?

It's honestly been very quiet on Beacon Hill following the end of formal scheduled sessions on July 31st.

But we have seen reaction pouring in.

So, for example, the Massachusetts Budget and Policy Center pointed to the estate tax as a lever that lawmakers could continue to use to handle how wealth and generational wealth is passed down.

So, for example, the estate tax lawmakers had changed that several years ago and bumped up the threshold for when the estate tax would apply.

So would we talk about shifting wealth metrics long term? What actually policy tools does the legislature have right now? Are we seeing movement on housing, on tax relief or wage bills aimed at this?

Sure.

So we're seeing numerous housing policies are at play and under negotiation in an economic development bill.

The legislature is also very interested in accelerating and helping the adoption of commercial office buildings be converted into residential units.

Also, this November, voters will have a chance to vote on a ballot question that would legalize starter homes.