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