Dave Ramsey’s advice to Gen Z homebuyers

The Street

Dave Ramsey joins TheStreet to share his advice to Gen Z-ers looking to buy a home.

Transcript

00:00Let me first start big picture. What's the the thing right now in personal finance?

00:06That's driving you crazy the most

00:10Wow

00:12Gen Z trying to buy a house

00:14It's really tough. They have these huge increases in prices particularly in the markets in the south where people have moved to not from

00:23The the prices have gone up the interest rates have gone up and Gen Z is having a duck fit man

00:29They are drama drama drama

00:30They're having it because they think it's gonna be this way forever and they think they're never gonna get a house

00:35It's freaking them out and they're gonna get a house. It's gonna be okay things will change but man

00:41It's tough out there right now for that group. So what sort of advice do you have for that group?

00:47Just hold tight. Hold your nose. Life is not a snapshot life is a filmstrip

00:52And so when I when I was 22 years old, it was

00:561982 interest rates were

00:5917% on homes. It was crazy

01:02It was the end of the Jimmy Carter era right before Reagan came into office and Wow

01:07And but life's not us not that that was not defining my whole life

01:11It's not you can't project that and say that's the way it always is life's a filmstrip

01:14The only thing you're a hundred percent sure of is things are gonna change tomorrow. So you're gonna be okay Gen Z

01:20You're gonna get a house, but probably right not right now right now. You're sidelined and it's sad

01:25So, what do you think in terms of timeline is it like five years away for them ten years away for them I

01:34Have no idea and it there's a couple things going on

01:37We've got inventory shortages and a lot of these markets so supply demand is driving the price up

01:42And we've also got these interest rates ticking up and we've got this general malaise

01:47This is the semi I don't know bad mood in the economy

01:52Certain areas are booming individuals are doing very well in some areas, but there's just not a lot of hope out there everywhere

01:59And so I think when those three things start to heal then they're gonna see we get some inventory up

02:05We see the interest rates

02:06Maybe tick back down a little bit and people start smiling and are hopeful again and moving around out here in the economy

02:13Making decisions to purchase and to take risks again and those kinds of things instead of sitting with their

02:20Bottom lip stuck out then yeah, I think then the Gen Z is gonna be freed up, but it's gonna be okay

02:25It always is so I mean, what do you think is gonna make it?

02:29Okay, is it that the interest rates are gonna come down or the prices are gonna come down or their incomes are gonna go up

02:37Yeah, I don't see prices coming down

02:40Not not with an inventory shortage

02:42Generally again basic econ when you've got a supply that is

02:48You know, you've got a demand higher than a supply. You don't see prices go down

02:51You see prices go up. And so this inventory shortage is going to probably persist. So homeownership is a great thing

02:58We're gonna see incomes adjust

03:00People will continue to live their lives. They'll get in a different position

03:03They'll also adjust some of their expectations the house. They thought they could we're gonna live in three years ago

03:08They're probably they may not be living in that house as their first one

03:11They may be living a little bit further out of town where prices are a little cheaper in most markets

03:17They may be making a decision in their career to do something completely different, but it's always been unrealistic

03:23To buy a home when you're brand new out of college in an entry-level job, and you don't have any money

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