Nationwide, a sizable transfer of wealth from older generations to younger generations has begun, sometimes referred to as The Great Wealth Transfer. The transfer will enrich younger generations by providing them with new opportunities for spending and investment. However, given the disproportionate amount of wealth held by senior white families compared with senior Black families, this transfer of wealth could further widen the Black-white homeownership rate gap among younger families.

In addition, our findings suggest that transfer inequality within younger Black families could worsen as well, reflecting greater likelihood that younger Black homeowners expect to receive a sizable estate as compared with younger Black renters. These results underscore the need for policies that help households of color to achieve homeownership and ensure that families’ intentions to leave wealth are assured. The results also illustrate that the class divide, even within racial groups, could widen as well. A sizable transfer of wealth between generations is not guaranteed. Higher health care costs, greater philanthropic activity, or even challenges related to estate planning could affect the amount of wealth transferred to younger generations.