Many Massachusetts families find themselves on strong financial footing, but nearly 16% have zero or negative net wealth.
That’s among the findings of a new report from the Federal Reserve Bank of Boston that examines household wealth across the state. The results reveal enduring wealth gaps across race, education and home ownership — gaps that appear to be widening.
“The gap in wealth is broad,” said Keith Mahoney, a spokesman at The Boston Foundation, which co-sponsored the study. “Those who have assets, whether the assets be a home that they own, money in the stock market, insurance policies, even education — those assets are increasing.”
Those who don’t are falling further behind, he added.
Wealth is different from income. It’s what someone owns, not what they earn. It’s the assets that a person can pass on to a future generation and the savings that can be a buffer amid financial headwinds or an economic downturn.
The survey found many in Massachusetts living on the edge. Roughly one in three people said they don’t have enough cash to cover an unexpected $400 expense — like a medical bill or car repair.
“Having wealth is the ability to financially navigate an unexpected job loss, a serious illness, or buy and/or maintain a home,” said Ali Noorani, chief executive of The Barr Foundation, in a statement. “It is the difference between one’s ability to live to their fullest potential and a trajectory that mires them in debt.”
The report’s data comes from the 2025 Massachusetts Economic Conditions and Household Opportunity Survey. The Barr Foundation, Eastern Bank Foundation and the Greater Boston Chamber of Commerce supported the data collection, which resulted in roughly 5,000 usable survey responses.
Wealth in Massachusetts was highest among white residents, homeowners and those with graduate degrees. The median estimated wealth reported was $374,000, and a quarter of Massachusetts families reported having roughly $1.1 million or more.
But many others live in much more precarious situations. For the nearly 16% who reported zero or negative wealth, their debts outweigh their assets.
“Seeing that was quite striking,” said Beth Mattingly, the report’s lead author, in an interview.
Black and Hispanic families were among those with the lowest net wealth in the state. So were younger families.
Homeowners had a significantly higher net wealth than renters. Families that owned their homes reported an estimated median of $790,500, while renters reported a median net wealth of $1,500.
Mattingly said she was encouraged by a relatively high median wealth for those over 65 — at $702,500.
“This is a really important one because we think about economic security and one of the functions of wealth being to cover retirement years,” she said. “But there’s tremendous variety and a large share of those over age 45 don’t have any money in retirement savings accounts.”
The survey also highlighted the stark difference in wealth between those who pursued higher education and those who hadn’t finished high school. Families with an adult member who completed a bachelor’s degree reported a median net wealth of $455,000. For those who had not completed high school that number fell to $1,100.
In a statement, James Rooney, chief of the Greater Boston Chamber of Commerce, said, “We must remain committed to urgently building a future that increases opportunity and quality of life for all people.”
Editor’s note: The Barr Foundation and The Boston Foundation are philanthropic supporters of WBUR. WBUR’s newsroom is editorially independent.
