According to a new report released by the Pew Research Center, US households experienced a financial boost during the pandemic, resulting in increased net worth. However, the report highlights significant disparities in wealth based on racial, ethnic, and economic backgrounds. The findings underscore the existing wealth gaps that have only slightly narrowed over the past three years.

Between 2019 and 2021, the median household's net worth saw a significant rise of 30%, reaching $166,900. This increase can be attributed to the COVID-related lockdowns, which limited impulse purchases, and the ability of employees to work remotely, thereby reducing expenses such as commuting costs and expensive lunch runs.

White and Asian households experienced the most substantial growth in total dollars during the period studied. White households were found to be 13 times wealthier than black households at the beginning of the study, indicating pronounced racial and ethnic disparities. However, by the end of 2021, this gap had slightly decreased, with white households being nine times wealthier than their black counterparts.

Furthermore, the report revealed wider wealth gaps among lower-income households. Low-income white households were found to have 21 times more wealth than low-income black households. Although the pandemic provided some financial relief to low-income black households, it was likely insufficient to fully alleviate their debt burdens.

The report also highlighted the financial struggles faced by black and Hispanic households. One in four black households and one in seven Hispanic households were found to have zero wealth by the end of 2021, even though they made progress in reducing their debt. Poorer black households managed to decrease their debt levels by around $6,000, from $10,100 to $4,000, over the three-year period. Similarly, poorer Hispanic households made strides in reducing their $1,100 debt.

On average, black households had a net worth of $27,100, while Hispanic households had a net worth of $48,700 by the end of 2021. The lowest-earning Asian and white households had a net worth of $8,900 and $4,700, respectively.

It is important to note that these low-earning families are likely to face increased financial stress compared to 2019, as the factors that contributed to the wealth boost during the pandemic, such as low interest rates and reduced rents, have since reversed. Inflation, which peaked at 9.1% in June 2022, continues to be an economic challenge. However, there are signs of improvement, as last month saw a 3.2% decrease in inflation, offering hope that prices may be heading in the right direction.

The report also highlighted the disparities in wealth accumulation among different ethnic groups. Asian households saw the largest increase in net worth, with a growth of 43% to reach $320,900. White households, the second-highest earners, experienced a 23% increase to $250,400. The average high-earning Asian household brought in $1.1 million, while the average high-earning white household earned $923,300.

Homeownership emerged as the most valuable asset for American households, accounting for approximately two-thirds of the median household's net worth. Ownership rates were highest among white households, followed by Asian, Hispanic, and black households. Asian households were also found to be the most likely to have investment and retirement accounts. Additionally, approximately 60% of all US households had at least one person with an individual retirement account or 401(k) by the end of 2021.

However, as Americans face the impact of inflation, balances in savings accounts have experienced a 4% decline in the latest fiscal quarter due to increased "hardship withdrawals." Inflation remains a significant concern for eight out of ten respondents, contributing to their financial stress.

The report provides a comprehensive snapshot of the wealth disparities experienced by US households, highlighting the need for continued efforts to address racial and economic inequalities.