Embedded Files
David DeLuz, deputy director of Caltrans’ office of civil rights, said a shift towards an entrepreneurial mindset has had a positive impact within the Black community. Cristian Gonzalez, courtesy photo
Amid a backdrop of historical disparities, a promising transformation is quietly underway as the wealth of many in Sacramento’s Black community is on the rise.
Adjusted for inflation, the number of Black households in the four-county Sacramento region making $200,000 or more has nearly doubled since 2010, rising from around 2,400 to about 4,600 in 2022, according to the latest figures from the U.S. Census Bureau. Along with income, educational attainment rates have increased significantly while Black homeownership also appears to be rising.
“There has been a real emphasis on entrepreneurship as opposed to looking for another career job,” said David DeLuz, deputy director of the office of civil rights at Caltrans. “I think that the mentality is shifting from a dependence on an employer, or a job, and really focusing on developing your career and a business.”
The positive trend could have broad consequences for Black households.
“Building up generational wealth is so important,” said Austin Payne, a coordinator for RAGE Project. “Growth can’t begin without capital. Once some capital can be injected into the community, that’s when positive trends can really start. That’s why increasing homeownership in the community can build a solid foundation.”
RAGE (Race and Gender Equity) Project is a Black-led organization focused on educational consulting. It provides coaching on communal leadership and growth for younger generations and allies.
“Homeownership and increased capital to programs to help people get back on their feet is huge,” Payne said.
The increase in Black wealth comes after a sharp, bleak period of widespread economic uncertainty.
The economic recession of 2007 was particularly damaging to the Black community, especially Black homeowners and those seeking to buy homes for the first time. It wasn’t until mid-2009 that the Great Recession technically ended. In 2010, Sacramento would see people making the first steps toward rebuilding lost wealth.
“When you’re measuring economic indicators, in 2010, you’re talking about people who lost jobs, or hadn’t been to work or, you know, had been out of work for quite some time, and the economy really took a hit on every community,” DeLuz said. “As you know, when America gets a cold, the African American community gets pneumonia.”
Francesc Martí, director of policy, strategy and legislative affairs at Cal Housing Finance Agency, said Black residents also faced headwinds from decades of discrimination.
“I think we’re all very cognizant that there’s a history of systemic racism not just in California, but in the country, especially when it comes to real estate through redlining,” Marti said. “Real estate is probably the main wealth-building mechanism that most Americans – most Californians – have.”
CalHFA is an organization primarily focused on helping renters and first-time homebuyers build wealth and improve housing quality through services like down payment assistance programs and the development of multifamily rental housing. Martí said the most vulnerable homeowners are also members of minority communities. He says CalHFA works to offer these communities various forms of assistance.
“We can get to target our mortgage relief there, just to make sure that we are providing some assistance to help them or to prevent them from entering foreclosure,” Marti said.
Build The Foundation Early
“I think that owning a Black business, especially in the mall, is wildly inspirational,” says Jaime Mack, the owner of SpiderMonkey’s Dessert Studio in Arden Fair. Cristian Gonzalez, courtesy photo
Kristee Haggins, psychologist and co-founder of Safe Black Space, also sees education from teachers, community members, faith leaders, and others as a primary tool to continue the positive economic trend.
“It’s really about doing it at a community level,” Haggins said of the impact education around finances can have. “Doing it in such a way that our little ones are learning the value of money and their talents and what they can contribute … how to invest money or how to buy your own home … and understanding that there’s value beyond the money.”
Jaime Mack, the owner of SpiderMonkey’s Dessert Studio in Arden Fair, said her experience with Sacramento’s business landscape, and how it was affected by the pandemic, underscores the importance of equity.
“Prior to COVID, I don’t think that the mall would even look at a small Black business as a tenant,” Mack said. “But the mall cleared out during COVID and they introduced more diversity in their offering for spaces.”
Once companies started vacating the mall there was an opportunity for smaller, minority-owned businesses to open up shop. The next hurdle would be staying open.
Mack said one of her first challenges was educating herself about the many regulations and types of taxes businesses are required to pay to stay compliant with California regulations.
“Sometimes it’s lack of exposure. Our community, a lot of times, is not exposed to the things that are necessary to run a successful business,” Mack said.
She emphasized the universal need to understand business practices to successfully operate in California.
“When it comes to actually running a successful business, it doesn’t matter where you’re from,” Mack said. “There are certain things that you just simply have to make sure happen in order to make your business a success.”
Still, Mack believes that businesses and stories like hers can help to inspire others in the Black community to pursue self-made success.
“I think that owning a Black business, especially in the mall, is wildly inspirational. I wouldn’t have even thought that it would be me who will be able to have a business in the mall,” Mack said. “I hope that other people will look and say ‘It’s possible,’ and ‘Yes, I can do it.’”
Even with positive trends, Haggins warned not to forget the challenges that different groups face, as well as the obstacles they must continue to persevere through.
“We have to make sure we don’t forget that history,” Haggins said. “I want to note the strength and resilience of our people and in our community as a whole. There is this collective power of people that’s possible and I think you’re seeing some of the results of that.”
While there is still progress to be made in growing wealth in Black households, DeLuz said a shift towards an entrepreneurial mindset has had an impact within the Black community.
“Are we where we really want to be? I don’t think you can answer, ‘Yes.’ I think there’s still a lot that we need to be doing,” DeLuz said. “But I think what you’re seeing is people making a conscious decision to take matters into their own hands and be captains of their own destiny.”
EDITOR’S NOTE: This story was produced by Professor Philip Reese’s Sacramento State journalism students.
Originally published in The Sacramento Observer.
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