Minorities' buying power exceeds $1.3 trillion
By Furniture Today Staff -- Furniture Today, February 17, 2002
The buying power of America's racial and ethnic minorities should not be underestimated. The Selig Center for Economic Growth at the University of Georgia estimated that in 2001 the combined buying power of blacks, American Indians, Asian Americans and Hispanics topped $1.3 trillion.
According to the Selig Center projections, the three racial minorities increased their combined buying power by 96% between 1990 and 2001, while Hispanics, who can be of any race, increased their buying power by 118% during the same period.
The buying power of Hispanics reached $452 billion in 2001 according to the Selig Center. Hispanic buying power is expected to continue moving upward, because of both rising population and rising education levels linked to better-paying jobs.
Census Bureau figures show that Hispanic income levels are already rising. Between 1993 and 2000, real household income for Hispanics rose by more than 24%. In 2000, the average household income among Hispanics was more than $42,000. Nearly a third, 30.3%, of Hispanic households have an annual income of $50,000 or more.
In terms of sheer dollars, blacks have more buying power than any of the other racial or ethnic minorities. The Selig Center for Economic Growth estimates that 8.1% of the nation's buying power — $371.1 billion — was attributable to blacks in 2001. Census figures show that the average household income is $40,068. More than a quarter, 27.8%, have annual incomes of $50,000 or more.
Asian Americans have buying power
higher than their 4% share of the population because of their higher educational levels and incomes. This is a well-educated group. Among Asian and Pacific Islanders, 42% have a bachelor's degree or more. The average household income for Asian households in 2000, at more than $70,000, was the highest of any racial or ethnic group, including whites. More than half, 55.9%, of these households have incomes of $50,000 or more; nearly a fourth, 22.7%, have incomes of $100,000 or more.
The Selig Center for Economic Growth pegged Asian American purchasing power in 2001 at $253.8 billion, a 125% increase over 1990. Substantial and continued growth is expected, in part because of Asian Americans' higher education levels and the large percentage that already hold top-level jobs in management and professional specialties. Plus a large proportion of Asian American adults are in their early career stages, poised to move up the economic ladder. Also, there are an increasing number of successful Asian entrepreneurs.
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| 2001 buying power in billions | |
|---|---|
| Black | $572.1 |
| Asian | 253.8 |
| Hispanic | 452.4 |
| White | 6,219.8 |
| Source: Selig Center for Economic Growth | |
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