There Is a Revenue Gap for Medium-Sized Black Developers

Medium-sized Black developers generate lower average revenue than their Hispanic and white peers. Black developers in the medium size category have an average annual revenue of $1.3 million, compared to $1.9 million for both Hispanic and white developers in the same size category.

The gap in average annual revenue for medium-sized Black developers is notable because it is the reverse of the pattern we found for both small and large developers. This gap would be worth investigating in future research. It could reflect a unique level of historic or ongoing discrimination against Black developers, divergent access to capital, or barriers to accessing certain segments of the market. Although this list of potential causes is not comprehensive, each would point to a different solution. Initiatives to increase diversity, equity, and inclusion in the industry should especially engage Black developers in this size range.

FIGURE 8 – MEDIUM-SIZED REAL ESTATE DEVELOPERS’ AVERAGE REVENUE
On average, medium-sized Black developers generate $600,000 less in revenue each year than their Hispanic and white counterparts. 

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