This paper examines racial and ethnic differences in locational attainments in the transition to adulthood, using longitudinal data about neighborhoods of youth in the National Longitudinal Study of Adolescent Health. It examines place stratification and life course models of locational attainment during the 1990s, a period during which neighborhood poverty rates were declining for many groups. The analysis reveals durable inequalities in neighborhood poverty from adolescence to young adulthood, particularly for blacks and Hispanic origin subgroups. Family socioeconomic status and emerging educational attainments are associated with decreases in neighborhood poverty, with blacks receiving a stronger return from educational attainments than whites. Despite the benefits of education, racial and ethnic minorities remain more likely to live in considerably more disadvantaged neighborhoods in young adulthood than whites.