NJ Among States With Most ‘Racial Progress,’ New Study Says

NEW JERSEY — Equality is marching forward in New Jersey, where “racial progress” was among the best in the nation last year, a recent study says.

Financial information website WalletHub released the latest version of its “States That Have Made the Most Racial Progress” report ahead of Martin Luther King Jr. Day. Read the full study and see its methodology here.

Researchers measured the gaps between Black people and White people across 22 “key indicators of equality” in each of the 50 states and the District of Columbia, ranking states on factors such as annual household income, standardized-test scores and voter turnout.

New Jersey ranked 5th-highest on the list, behind Texas (1st), Wyoming (2nd), Mississippi (3rd) and Georgia (4th).

New Jersey’s scores included:

• Employment and Wealth – 7th
• Education – 8th
• Social and Civic Engagement – 16th
• Health – 8th

It’s an improvement from WalletHub’s 2024 list, when New Jersey ranked 7th-highest in the nation for “racial progress.”

It’s encouraging to see that attitudes regarding equality have grown “considerably better” in many states, researchers said. But more work still remains.

“Although the U.S. has made a lot of progress toward racial equality since the Civil Rights Movement, we still need to do better to ensure equal opportunities for everyone,” WalletHub researchers said after releasing this year’s rankings.

• See Related: Anti-Trump Protest In NJ Will Invoke Name Of Martin Luther King Jr.
• See Related: New Jersey Slavery Reparations Council Continues Public Outreach

NEW JERSEY’S WEALTH GAP

While progress is being made in the Garden State, advocates point out that there are still some troubling racial gaps that exist – and not only for Black residents.

Last year, the New Jersey Institute for Social Justice (NJISJ) released a report that spotlights a persistent “wealth gap” that plagues the state. According to the Newark-based nonprofit, here are some of the uglier statistics:

• INCOME – In New Jersey overall, the median income for white households is $109,100 – compared to just $65,400 and $70,200 for Black and Latina/o households, respectively.
• HOMEOWNERSHIP – White homeownership in 19 of New Jersey’s 21 counties exceeds 70%. By stark contrast, Black and Latina/o homeownership rates in about two-thirds of counties are under 50%.
• HEALTH INSURANCE – In New Jersey, 3.5% of white residents are uninsured, compared to 8.3% of Black and 17.9% of Latina/o residents.

According to the NJISJ, the primary driver of New Jersey’s racial wealth gap is homeownership. It's systemic racism that has been around for ages, the nonprofit says.

“During slavery, New Jersey designed a racially discriminatory system for landownership – a system that continues to shape the modern day through generations of housing policies such as restrictive covenants, discriminatory access to the GI Bill following World War II, racial segregation, racially discriminatory lending practices and modern-day redlining,” the group wrote.

These policies – created with a guided hand – have left a legacy of housing inequity in the Garden State, advocates say.

The statewide homeownership rate for white New Jersey households is 76.4 percent: nearly double the homeownership rates for Black and Latina/o New Jersey households, who have homeownership rates of 39.7 and 39.6 percent, the NJISJ noted last year.

• See Related: Race, Wealth And Homeownership: New Jersey Still Seeing Troubling Gaps

New Jersey made progress towards easing this gap with a law passed in September that aims to combat racial discrimination in home appraisals.

“When buying or owning a home in New Jersey, we must strive to provide our residents with fair and equal treatment,” Lt. Gov. Tahesha Way said.

“For far too long, systems were in place that would perpetuate racial bias,” she added

• See Related: Seeking ‘Fair Appraisals,’ New Jersey Passes Housing Discrimination Law

Another state law passed last year – the Community Wealth Preservation Program – gives homeowners in New Jersey who are battling foreclosures a powerful new weapon against investors seeking to “flip” the homes for a profit. Read More: NJ Homeowners vs. Flippers: New Law Helps To ‘Level The Playing Field’

OTHER RACIAL GAPS IN NEW JERSEY

Advocates have pointed to other troubling racial gaps in New Jersey over the years, including an ugly pay gap for Latina women, segregated school districts, pandemic disparities and workplace diversity.

Catch up with some of our recent articles below (click headline to read):

Latina Workers In NJ Face One Of America's Ugliest Pay Gaps

Latina workers in New Jersey earn less than half of what white men make. Here are some reasons why – and what can be done to fix the gap.

How Segregated Is Your NJ School? See District Breakdown

More than 130 NJ school districts have at least 80 percent of students of one race, a Patch analysis found.

COVID Lockdown Arrests In NJ Plagued By Racial Gaps, Report Says

If you're Black, the pandemic crackdowns in New Jersey were much worse, a new report says.

Study Probes Diversity In NJ Newsrooms: Race, Gender, Pay, Turnover

Newsrooms across the United States haven't reflected their communities for decades, a study says. Is the tide turning in New Jersey?

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