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In a concerted effort to combat the persistent racial wealth gap in America, Northwestern Mutual announced on Wednesday that it has allocated $3 million through its Sustained Action for Racial Equity initiative and Foundation to support Milwaukee residents in achieving financial stability through homeownership. Despite progress in education and earnings, the net worth of Black Americans remains 70% below that of non-Black households, according to recent data from the Federal Reserve Board.
In an effort to reduce the racial wealth gap in Milwaukee, the company plans to invest $2.5 million in the Milwaukee Community Land Trust (MCLT), utilizing funds from its $100 million impact investment fund. This investment aims to promote affordable housing and ensure the long-term affordability of homeownership. The focus is on underserved communities, with an emphasis on improving physical and social infrastructure, facilitating access to capital, and fostering healthy and sustainable neighborhoods.
Additionally, $500,000 will be donated to Acts Housing's Homeownership Acquisition Fund. This fund, established with support from the Community Development Alliance, aligns with Milwaukee's affordable housing plan. By purchasing houses for rehabilitation and resale to new homeowners, the fund addresses the shortage of quality affordable homes available to low-income Black and Latino residents. The combined funds are expected to support up to 20 homes in the greater Milwaukee area.
For over a decade, Northwestern Mutual has been actively engaged in revitalization efforts and economic empowerment in Milwaukee's Amani, Metcalfe Park, and Muskego Way neighborhoods. With investments totaling more than $15 million, the company has helped establish thriving neighborhood associations, resident-driven revitalization plans, deeper collaboration with non-profit partners, and the development of a citywide shared housing strategy.
“Milwaukee is unique compared to other cities with a stark racial inequity in homeownership,” said Lamont Davis, executive director for the Milwaukee Community Land Trust. “At MCLT, we are focused on a long-term strategy investment. Together with our partners, like Northwestern Mutual, we’ve already been able to invest in 10 affordable homes throughout the city and are working to add more than 30 more by 2025.”
“In Milwaukee, families of low-to-moderate income are increasingly rent burdened and forced to make decisions that limit their ability for upward mobility,” said Dorothy York, vice president, real estate at Acts Housing. “We are working to acquire at least 100 properties per year beginning this year and convert these properties into owner-occupied homes. This strategy works through a combination of program investments from philanthropies and long-term patient capital from financial institutions like Northwestern Mutual.”
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With the median income for a Black household in Wisconsin averaging $31,351, which is less than half of the state and national median household income, Northwestern Mutual's investments and partnerships will provide a sustainable pathway to homeownership for Milwaukee residents. By empowering individuals to invest in their future, the company aims to make a tangible and meaningful impact on closing the racial wealth gap.
For more information on Northwestern Mutual’s investments, visit the Northwestern Mutual Foundation website.
