One can argue that the housing costs are a greater portion of someone's income, but the overall economic situation is the same. People blow their money on crap they do not need these days. If they quit doing that, they could actually afford important things like shelter.
Is to rant about how folks can't afford the houses in the areas they want. This is literally a game now. It's pretty much move to a more affordable town, get married, get raises and save until you can afford it. I remember living in NYC and many properties being like 700k. I said nope I'm moving out. Maybe in a few years I will buy something decent around 300k.
Im curious. What happens to society when Teachers, Nurses, First Responders, Grocery store employees, and Sanitation workers can no longer afford to live in an area?
Sad truth ~ they will be renters or purchase town homes. (Yes I see those being built recently). Or They will have multiple people on the loan document to boost up the income so they can qualify for the home ~ cosigner Yes, it sucks. This is coming from a truck driver that finding it hard to make close to 80k unless I drive over the road ~ and that's not even guaranteed income if I do that
@@Sexy40baby1townhomes? Have you seen the prices of townhomes. I own one, last time I checked, it was valued at around $400k. One down the street, the same model as mine, sold for $430k.
@Aki_Lesbrinco yes and also I said multiple people incomes ~ cosigners~ will be needed. Cost of Living is no longer low anymore. And all employers aren't paying large amounts of money
Dude, I bought my home 4 years ago and it has already doubled in value. I live in a smaller Midwestern city, if I had waited to put 20% down on a 15 year note, I would not be able to afford the apartment i was in or the home I'm in now. It is crazy. 4 YEARS. Not 4 decades.
Real estate often has short term increases like that, but they don't last long - it's pretty normal. The market will run out of steam, then prices will either go backwards or there will be a plateau that lasts for a long time - 10 or 15, even 20 years. Houses will slowly get more affordable again as wages rise. We bought in the early 2000s boom. House prices tripled in our area over 4 years (we bought when they were about half way though the cycle so our house rose by about 50% in 2 years after we bought). My father thought we were insane paying what we did and would never be able to pay our house off. He was losing sleep at night over it! Prices then didn't move at all for 10 years. Around 2011, prices went on the march again for a couple of years and then went stagnant, and now they're risen again. The cycle will continue. The 5% per year or whatever houses have risen over time isn't linear - your house doesn't continually go up year on year (the house we upgraded to in 2014 after the 2011 - 14 price rally dropped by 20% after we bought it and stayed there for 8 years until the current boom). On the raw figures you'd say - look, your house doubled in 10 years, but in reality it didn't. It doubled in 2 years at the end of the 10 years. For most of that time it was worth less than what we paid. No doubt it will now plateau off again or even fall from these highs.
@PrisonerD I get it, my whole point is that Dave acts like it's not a big deal the fact that they are living during a 4 year period where they are making the least they'll hopefully make in their careers while the housing has doubled and pretty much all other vital items have increased 30-100% in that same time frame. "Adjust your sails." Sorry, that was not my experience at all as a young adult starting out and I would have been freaked out too. A little empathy can go a long way for these young adults instead of just saying they're whining and he and Jade laughing about the situation. It comes across as very tone deaf.
@@Elizabeth_lowkeyluxuries good for you. Glad you made the right decision despite Dave's stubborness....there's two things that annoy me about Dave. 1. Acting as if his philosophy is the only way. 2. Diminishing the reality of the shrinking middle class......he'll go on rants about the Fed or politicians. But then act as if the housing market isn't affected by those decisions.
Stop gaslighting us.. housing prices have gone up wayyy more than what is “normal”. This is statistically proven, not just sentiment. I do agree that we can’t live in victimhood about it, just gotta try harder to make more money and deal with it…
@@James_Hough When does he acknowledge the absurd increase in price? He uses the example of his parents buying a house for 12k, which is roughly 122k today. That is like buying a house with a bucket of strawberries, comparatively.
Dave has no understanding of reality. At the beginning of the video he mentions that his parents bought a house in 1963 for $12,230. In 1963 the median household income in the US was $6200 per year. So the house his parents bought cost about twice the median income for that year. He also mentions that today that house is worth about $400k. And today the median household income is about $74k. So that house his parents bought went from costing about 2 times the US median household income to 5.4 times the US median household income. And later in the video he talks about how not everyone can afford to live in downtown Manhattan. His point is that sometimes there are certain places where the housing is just so expensive that you have to go move elsewhere. He is right. However the problem is that in many, many areas of the country there is no other affordable place to live. For example - if you are a family that has a household income of $85,000 and you are currently renting and living in the suburbs of Washington, DC there literally are NO homes that you can afford within a 100 mile radius. And once you do look far enough away to find a home you can afford then you have to move to a more rural area. And guess what? There are no jobs in that area where you can still make $85,000 per year. But Dave doesn't want to hear it because he is still living in the past. I don't know why he doesn't want to admit that this is a real problem and that it is fundamentally different than things have been in the past.
HINC-04 U.S. Census Married with children under 18 yrs old Median household income, all races, $123K $196K for Asians the median household income is about $74k This includes retirees, single mothers, .... Everyone It is like average life expectancy (everyone) rather than If you are 65, you have a 50/50 chance of 84 and if you are married at 65 then 50/50 chance of one of you making 90.
So what. Houses can be obtained for $74k x 2 = $148k. Same style house. Same metro size. There were 400k people in Nashville then. There are 1M people in Tulsa today and a house can be bought for $150k. Plenty of them too. The average homeowner in Tulsa makes $90k per year. So it's not even 2x for a house for them.
Don't forget that in 63, it was one income in 2024. it's two incomes, so now you must pimp your wife out to the workforce and let the culture raise your children. And you get to be emasculated and have open borders we a criminal as president and a poison Vax. Dave is probably a leodecian type christian who lets the culture determine what is appropriate and trys do it better. I do like his debt snowball approach though.
We closed right before the pandemic hit. Had we not, we would never be able to afford this. Our home jumped 200k in value. Income has increased 1.5-2%. The math doesn’t check out. Edit to update: it’s over 400k more now! 🤯 this can’t possibly be right.
You know how our grandparents or great grandparents not only moved out of their city but moved to an entirely new country in many cases where there was literally no roads yet? That's what we need to do. It sucks but I can't think of any other solution for us. We can't even afford way outside the city and we both work middle class jobs. Like if I've ever heard the name of that town then I already know I can't afford it. I need a place where there isn't even a hospital built yet 😂
You’re looking at too high prices then. Either find something in your affordability area, move to a city that has it or rent and save up he’s not wrong
He needs to be foolish. If he tells the truth. No more viewers to lie to. This country is going to fall and burn. He'll never say anything close to that. I guess car prices have always been like this, too. 1000.00 payments per month.
@JP-uy9kq We like our area so if we sold any equivalent home be about same price in this area....unless we downgrade or we would have to move somewhere else cheaper. So while we made money out buying power didn't really increase.
One thing past generations did not have is investors buying up the entire housing market! We aren’t competing with other first time home buyers, we’re competing with corporations that have millions to spend, and millions of mom and pop investors who all want to own 50 houses each. The current market is nothing like the past. Ramsey doesn’t understand that.
Yes, suggesting to people to find alternatives of places for housing and striving for a better income is so "out of touch." You are the victim he dunks on LOL
@@Will-jg2zs what business can I start that will guarantee me to be a millionaire? Maybe the problem is that nobody who isn't lucky cant afford a house. Maybe just maybe when nobody can afford a home. That the system of broken
Dave is just mad that with the current market, his formulas which haven't been updated since the early 90's no longer are practical for the majority of people.
@@LittleMopeHead This has to be one of the lamest type comments. Like "you don't have any right to criticize, you should just leave if you don't follow the cult to the t." Why are you here if you can't accept any criticism of his ideas?
Other argument is people could still follow his mortgage principle, they just feel entitled to a nicer house than they can afford based on his principles.
@@Ryan_DeWitt you can criticize Dave all you want, he's right in this video LOL as he is in most things when it comes to finance/investing/business. You are just mad that you can't control your spending and live below your means 😂
And it exists today too. Or very close. Just not the same city, as Nashville has grown. You can buy a 3/2 for $150k in America. And it's not a terrible house. And if your family income is 75k it will match the 2x asking price.
@@hvaball150maybe in a town with 200 people lol, even in rural America housing prices are out of control. In towns with 30k to 100k population a regular house is costing $200k+ .
don't forget that the house in 1963 was 3 times smaller than today, no double garage, no granite counter tops, huge backyard, 1 toilet/bathroom, etc...
@@JonathanGarcia-wz9jj just an example...Tulsa has a 1M plus metro population. Plenty of houses for $150k. But ok, go $200k then. Not much difference. The median house owner makes $90k in Tulsa. It's still affordable. Sure, there are plenty of $300k houses too. But who says that is a starter home for everyone starting out.
@@hvaball150 lot of us dont make 90k a year.... we make 40-45k if a lot of overtime and thats with hubby as in a trade and busy all the time....we only make it cause we live together with another family member who makes about 55k a yr and they can afford the mortgage but not utilities and food and maintenance so we cover everything thays not mortgage and i clean the house and run things and upkeep outside
Shit you can push that to 1985, people born 1985 or later became adults as soon as the economy completely changed, and inflation started to get completely out of control while wages stopped growing, and a ton of middle class jobs were taken overseas because of greedy CEO’s and corrupt politicians
@@downeykids its not, he pretends everyone can just “get a better job and buy a house if you keep your head down for a couple years”. The economy today doesnt work like that AT ALL for most Americans. Houses on average cost 11.5x the average yearly income ( compared to 3x when David was a worker) , 60% of americand live paycheck to paycheck and risk bankruptcy/homelessness if they have to face a medical emergency, EVEN WITH INSURANCE. The capitalist class has captured capitalism, corporations and billionaires won and have submited the working class completely to wage slavery.
It is when you don't hold accountable the people who victimized you. Hint, it's not Dave Ramsey. I like how these politicians get a pass for all the damage they did the past 4 years yet Dave Ramsey stating water is wet brings out the pitchforks... wild.
@@GigaChad_169 I'm not giving anyone a pass. It's totally the faul of politicians and wealthy lobbyists and has been done intentionally by design. People like Dave love to call it "math" when it grinds workers down, but the minute their vaunted "free market" starts benefiting workers, then it is their turn to whine that "nobody wants to work."
Blaming the wealthy Boogeyman and the evil politician is simple-minded. There are many factors that contributed to the situation and this is not unique to the United States. Think harder and longer and you might come up with a real solution
Typical comment from someone who hasnt been a middle-class citizen in a long time. If I didnt buy my house 6 sears ago then I would be crying too being in the housing market.
Housing IS too expensive, and I don't see how my kids will be able to afford life here. My house is now priced at $500,000, it was a starter home in 1998 at $150,000. I left Canada in 1996 to have an affordable life here in FL & my kids are going to have to do the same and leave. If US is going to lose great talent to other countries because they have not controlled inflation & housing inventories. Not wining - just facing reality. If this Country cared about its population, they would not let this happen to our youth.
So your house is now worth 500k and you are complaining? Sell the hours to your kids for 90k then? Oh, no? You’re happy your house went up in value but sad your kids can’t afford a home
I completely agree 100%. The US is about to loose my wife and I Who are professionally skilled upstanding citizens. We are about to leave to another country for a better life and especially because of healthcare.
Inflation is caused by the government. Creating more money to borrow and spend is a perfect recipe for inflation. That raises the cost of everything. More income is chasing housing. It is greater wealth which is driving up prices. Not everyone is winning. They are now whining. Government regulation such as zoning and environmental costs are adding to cost and restricitng supply. This is predictable.
Dave come to Cali. I make 160k a year, yet a 3 bedroom in the area I work is 1 million plus. Please explain how I put into my 401k, pay my health insurance, kids bills, etc etc. please. Salary to home price ratio has changed. How do you not acknowledge this?
My wife and I make $150k a year. It will still take us 3-4 years to save up a 20% down payment to buy an average house in our area. Most of our friends are making closer to 70k together. With rents at 2k for a 2 bedroom apartment not in the Hood it’s freaking hard to save for a down payment. Out of touch Dave
Same here. Household income 220K one debt left 90K student loan. Our rent was 2K now is 2.5K our broke friends bought 580K house 2 years ago with 3% rate. Their payment is 3K pretty soon we will pay that for the rental. I used to like Dave but he just became old grumpy out of touch man. I just can’t listing him anymore.
You’re making $12,000 a month and your $2,000 rent is holding you back? Something ain’t adding up. Are you both driving brand new luxury cars? Most people’s rent or house payment is half of their monthly income.
@@Ffmt-ri3ti I agree with you. How is CatsandBourbon making 150k a year and struggling? Makes no sense, clearly their expenses or spending is off the charts. Either cut a lot of unessential things from your budget, or move in with family etc to save
My parents bought their home with 4 kids. It was a 3 bedroom, 1 bathroom house. So us girls had to share bedrooms. It wasn't anything fancy but it was a nice house in a nice neighborhood. Now days people have 4 kids & they think they need a 5 bedroom, 4 bathroom house with granite countertops, stainless steel appliances, office space, etc. People's taste is what has kept many from being able to purchase a house.
Before I went to college, the starting salary for the field I went in was $65k, and you could get a 4 bedroom house for around $350k. Now that I got that $65k job, the same exact house is $550k. The type of house im aiming for is currently around $300-$350k, but by the time I get the down payment for that, its price will probably be even more outrageously high. Housing prices have gone up 1.5-2x over the past few years, and those of us who are starting our careers are discouraged, but the man with many millions of dollars in real estate is telling us to "stop whining"
I can promise you, living in a normal city like tulsa, ok or hershey, pa comes with sacrifices from the housing crisis just like san jose and new york city. The problem is everywhere. I am tired of the New York and California comparisons. We are all having to purchase homes that are far worse in quality due to affordability, EVERYWHERE in the US. To those who purchased a home 4-5 years back, you are extremely fortunate that you could do so considering those of us who have never purchased a home will have an even tougher time now than ever before in history.
I know that I'm extremely fortunate to have bought in 2020 and being able to have achieved home ownership is just incredibly lucky on my part. However, I think it's important to realize that everyone is struggling to varying degrees. I bought in an area that was expected to get better but sadly it is getting worse but with the current market we realize we are pretty much stuck. A lot of my neighbors are older and in retirement. They would love to downsize but everything is unaffordable. Selling their house would be easy but finding a new place would be nearly impossible, unless they took Dave's advice and moved 100miles away from their family and way of life, which is the worst thing you can do to someone in their golden years.
Then you need to specialize in construction or find a better trade. If you are a general grunt, yea you won't make a lot, that is why you have to move up and get some skills to do bigger things, like the wrecker, crane operator, truck driver. But to say that wages have been stagnant for 20 yrs is a total lie LOL
This is literally insane, he's telling people to move out to the sticks where there are no jobs, then you will be able to afford a house? People aren't crying about not being able to afford a house in a beautiful area, they can't afford any house at all Dave.
Back in the 90's, I had a young woman, I worked with, a Lethal Entry Tech she was clearing $200K/yr, The job site was one square mile of dredge coral sand, 800 mile away from any other land. She was buying a home in AZ, $10,600/mo, 0% interest, 2 year term. move out to the sticks and stand under a money waterfall.
He's not telling you to do anything if you bothered to listen. He said, something has to change despite what is going on with the housing market. He also suggested to raise your income level, did you bother to hear that? No, you didn't lol relax victim
This does a beautiful job of showcasing how out of touch Dave is with reality. It has NOT always been that way. In the 50s, you were able to BUY A HOUSE as a FRY COOK. Was it tight? Yes. Was it possible? Yes. Is it possible now?
Never made more than 55k a year- wife has not worked outside of our home. We bought a house. Had to make concessions about where we lived, and what we spend. People have to make hard choices, but complaining about it isn't going to fix the problem.
In the early 2000s, my parents bought a $105k house on a combined income of just under $55k. That same house is worth just under $500k. I now make slightly more than double their combined income at the time and I couldn’t afford to buy my same house. In just 20 years things have changed that much
@@TK-431 Alright, let’s get the context you so conveniently left out. When did you buy and where? I’m in Seattle. You’re not touching ANYTHING in this state, ANYWHERE, at about $23 an hour.
Dave needs to stay out of this conversation. If he wasn't a millionaire he'd be "whining" too. It's not about location at this point. Everywhere is expensive. And offered incomes are not keeping up.
But people have made way more money than their parents and grandparents, what are you talking about. Maybe the whiney house seekers need to budget better, get better jobs, vacation less and eat in more. They won't because they want everything and just want to blame the other generation. That is why Dave, deservedly, clowns on you all LOL
@@nashmonti120 make a 5 minute web house search before saying this. You wouldn't say it then. $50k might require $100k of work. But most of the $150k are move in ready.
@@hvaball150 I just think you are full of shit, and if they are that cheap it’s for a reason. Every where I’ve ever lived the cheap houses are in the shit part of town
I like how he acknowledges that it is really hard, then races past it to make the reaction to it the problem. “It’s a shame that you’re in pain, but I shouldn’t have to listen to you.”
He’s an arrogant jerk. Funny how the Boomers who have the majority of elected positiins and will continue to keep them due to their demographic size tell the youth to do something about it!!! They rigged in in their favor and we have no options, yet they tell us to change what they control!!! Pure evil!
@@Will-jg2zs Boomers created the problem. Who bought homes cheap, then got the majority of the political positions, then pushed policies to send their equity through the roof? And then for them to say stop whining?!?! That is beyond insidious
We just closed on 2/15/24. We paid $425K and the people who bought it 10 years ago paid $212K. The house was built in 1970 and its 1700 sq feet. Located in South Jersey. Sucks but we are grateful to even have a house.
10 years ago houses were insanely cheap. Now we are returning to near normal. You should have bought then. You will be absolutely fine today though. You will sell for double too...
They bought that house for $12,230 when the median household income was $6200. If that home is worth $400k now, it has gone up 32.7x in value. Median household income is $77,397, or 12.5x since 1963. Home prices are up 260% relative to income using your own numbers.
Median doesn't matter. They don't typically buy houses. And it doesn't represent a total amount of worth (we would have an $8T GDP then if everyone made the median). The true median income of an American is $0. We don't count large swaths of Americans to get to a false median. They can't afford a candy bar. The median home owner makes about $140k. The average American makes about $150k.
**HERE IS THE MATH PEOPLE** According to the US Census In 1963 the average US household income was about $6200 per year. So that means Dave's parents paid about 2x their annual salary at 4.5% interest as he stated. TODAY, the average US family income is about $77,000 per year and the cost of the average home right now is about $385,000 with current 30 year fixed interest rates of about 7%. So that's about 5x the annual salary. What does this all mean?.... The average price of a home right now is about 2 and a half times more expensive today than it was in 1963. If you factor in the higher interest rated that puts it at more like 3 and a half more expensive. Not to mention all of the other expenses like food and utilities are exponentially more expensive compared to the lower rate if increased family income. Dave Ramsey does not understand math at all. The bigger issue is the fact that we now live in a global economy, a problem that his parents never had to deal with and guess what, America is sliding on the global economic level while places like China and India are catching up. Dave's parents home went up 33x in value over 50 years, do you really think your 400k home today will be worth $13 million bucks in 50 years? Heck no and you know why, IT'S THE GREEDY UNREGULATED GLOBAL PRIVATE SECTOR. THEY WILL HAVE EVERYTHING AND YOU AND I WILL HAVE NOTHING! But we do have shorter life expectancies and higher retirement ages to look forward to so flip a coin because if you're under the age of 50 living in American you basically have a 50% chance of being dead and buried before you reach retirement age. The irony is that we will all be slaves, regardless of our color. As our society collapses perhaps this is perfect irony for us white folks, that we should become slaves along side all of our fellow American slaves to the corporate greed. I guess karma is a bitch.
For how much emphasis Dave places on having a family and having many children and grandchildren, he sure doesn't seem to think that a median house should be affordable to start said family. A responsible couple will not start a family until they have enough money to buy a place they can afford and that is suitable to start a family. The problem is because house prices have inflated so much faster than wages, by the time that couple saves up enough, biology bites them and they can't have children at all. You can't have it both ways unless you want to raise a family in a crappy apartment in the bad part of town, which has an influence on the children and how they turn out whether you want to admit it or not. You can't have it all ways. So either you go anti-natalist to afford the house that you would have used to start a family, or you bring up your family in a negatively influencing environment. Those are not good choices for most people.
My home is up 100k from when I bought it in 2019. That's a 31% increase. My income has gone up like 4% in that same time. Between the price increase on the home and the increase in interest rates on homes now, I couldn't touch my house today.
Did the population grow? If it did, prices go up more. You won't buy the same house for the same price or even same relative price. Often one can't afford to re-biy their same house. This is normal.
Nah, you would just have to make more money, budget for a bigger house down payment and consistently stay out of debt. If you were searching for a home, you could do it.
A house down my street in Corona, CA is going for $839k! 3 bed, 2 bath, and 2000 sq ft home. Next to the freeway with homeless around. Tell me again that housing prices aren’t too high!
@@ryukirito2616 or somewhere where house buying is supported. If you can tolerate that place 😀. It sounds like you live in a rental area, so if the rent is fine stay there and ignore houses.
Millenial with a paid off house: I was considering selling my current house and going even further from a metroplex. I can only afford to buy a couple acres of undeveloped land. Then I'd live like a hobo in a tent on my empty land. This is all after my house value went up $150,000 over 4 years. I'm fortunate enough to have a paid-for house, but now it feels like I'm trapped here.
@@travisfyne9316 for 2 acres, generally one can obtain a permit to live there. Or perhaps a bit more than a tent...like RV or mobile home. However, yes you are right that some areas will not allow it too. For the amount of money he was talking about ($150k plus what he bought it for), he could buy an entire hunting camp already setup! Business in a box...
Yes, houses were cheaper but salaries were also a LOT lower. Our first house 1971 was a horrible fixer-upper for $15,000 but my engineer husband and I only had combined income of $17,000!!!
@@macpduff2119I would give my right arm to find a fixer upper house in my area that's just slightly above 1 year of my salary... Houses in my area are now 6x our household income. Y'all had it good.
@@macpduff2119 average house prices were '$23,000" back in 1970 which calculated for inflation is $176,000 in today's money (not even close to the 400,000 average today. Australia even worse its about $600,000 USD across the country
What Dave should acknowledge here is the Ramsey "15 year fixed spending no more than 25% (or whatever their figure is) mortgage" mortgage for the average family is getting damn near impossible for most households.
In 2019, the average salary for my position in DFW is $50k. In 2024, the average salary for my profession in DFW is $50k. I got forced out of Dallas in 2023 when my rent went up $200. I now live 1 1/2 hours north of Dallas in the middle of nowhere back at home working 3 jobs trying to save up for rent and I can’t even almost save up for the houses here in the country. Calling a spade a spade is not whining. We can say it’s hard and that doesn’t mean we’re lazy. We can say the systems broken and in that doesn’t mean we’re whining. Honestly find it so embarrassing when Boomers talk like this. You have a lot of good advice, Dave, but you’re wrong for speaking down to us like this.
In the mid 1950's, six town homes were built across from our Bronx NYC home. We lived in a nice neighborhood of single family homes near bus and subway lines. I remember my parents gripping about their outrageous price of $12,000-$14,000!!. Zillow lists the same townhouses today selling at $750,000 - $790,000! I make my point!
The average house price in my country has risen from 180k to 500k (!). The average salary has risen from 32k to 40k. But boomers that have made their money and still make their money in property keep laughing in my face while telling me my generation just sucks. Every house that is selling for 500k+ has on average 50 people trying to buy. Dave you lost the plot, mate. This is the last time I have listened to you spouting your outdated advice. I hope your kids know better or else they will never ever succeed in this new world. Unsubscribed but I wish you the best. Kind regards from the Netherlands 🇳🇱
@@Daph2023 Duplexes are not allowed to be lived in over here, nor trailers nor any other alternative housing. Our pulsation grew from 15 million people to 17.9 in a few years, no houses were built whatsoever. Indeed if I want a house I have to be the first amongst the fifty and pay 200-300k more so the others don’t still buy it. 800k for one of the cheapest homes. Dave is not right sometimes, and this time it’s to big for me to take him seriously ever again. The only thing I can and will do is emigrate from here to somewhere better. It’s the only way for us.
Noooo. In Australia, Even in the boondocks of small towns, houses are breaking the $1 million dollar mark. I am doing what I can about the situation, but I will continue to complain about this situation
I bought a home right out of college in 2012 for ~$115k. That same home today is $250k+. I had to sell my home for less than it was worth due to marrying the wrong person. And now I’m making more money, plus working a second job where I make equally as good money. Still can’t afford the payments on a $250k house. And I can’t move any further out, I’m already in the country. Dave is just out of touch on this one.
Here in Houston, Tx as early as 10 years ago, you could buy a new house for $80k. Those houses are easily worth 225k. When wages didn’t multiply by 2.5
So he wants us to cash flow a $30-$50k college degree, take on no debt, save, then live on the ring 100 miles away from town because it’s all that’s affordable? GOD he’s so out of touch.
If you invest like, $10-15k in a 529 account from when your kid is 1 yrs old to 18, that will cover more than you need for college. Also that is not even investing anything else into it either lol, being debt free is easily attainable and what everyone should strive for so they can afford college and that goes into your third victimhood point. Being debt free will allow you to buy a home closer to work, or where you want to live because you will have the margin to save up for a bigger down payment. You are out of touch LOL
@@Will-jg2zs yeah, but my parents (along with millions of others) DIDNT invest $10-$15k in an account for college, so your point is moot. I’m not trying to be a “victim”- I live within my means, and I’m on the ring 40 miles outside of the city I work in, I just think his idea is out of touch.
Sure, I could buy that $500K house today from his grandparents. Except the house my parents bought is now $1.6 million...The townhouse I did buy 12 years ago, I couldn't buy today either. there is a thing here.
It's housing prices relevant to wages that's the issue. Dave always ignores this factor. back when his grandparents bought a house, women typically didn't work, there were less immigrants in western countries (don't make this a xenophobic thing, it's just fact) and jobs couldn't be done online by someone else in a different country. My point being: There's SIGNIFICANTLY more competition in the job market these days and thus wages are exceptionally low comparative to the astronomical asset price inflation we've seen, particularly over the last 3 decades. Affordable housing simply doesn't exist anymore. In the same Metros where people are spending >50% of their take home pay on rent we're also seeing record levels of cash purchases. The majority of house buying is currently being done by the extremely wealthy. It's the same thing with the record levels of migration to cities we're experiencing in the west. People are flocking towards said rich people for work. Columbia has a smaller population than the UK but several cities that eclipse the size of London. Why? Because living out in the countryside is too expensive. The west is becoming an ever increasingly unequal country and unequal countries don't have cute little towns for ordinary people, they have slums for ordinary people. To say "it's the same as it always has been" is factually wrong. The middle class is dying. Wealth disparity is growing. The west is falling. I don't mean to doom post but the facts all state this. I also say this as a man who is in the top 10% in terms of net worth for my age. And even I feel broke.
Never made more than 55k a year- wife has not worked outside of our home. We bought a house. Had to make concessions about where we lived, and what we spend. People have to make hard choices, but complaining about it isn't going to fix the problem.
Imagine being some finance expert but you’re this out of touch with reality 😂 You boomers really have no idea how easy you people had it compared to now.
We are in a super good position and the lucky ones, and I still get annoyed how people don’t realize how dire the situation is for younger millenials and gen z. We’re millenials, bought our home in 2016 for 248k on an income of 74k. A modest 3 bedroom ranch from the 70’s. We are now at 125k and our house is worth 410k. That’s insane! We would struggle buying this same house now on an average income. Even with this pretty high income I think it’s crazy what the monthly payment would be given the higher interest rate. It’s not normal! I count my blessings every day we already own a home. But we are also making sacrifices in housing now as we are expecting our 5th and will have 4 boys in a smallish room. Ideally we would’ve moved up in house now, but we can’t and also are just not willing to pay so much more money on a house. It just feels out of touch to what the problem actually is. People are making A LOT of money and still can’t live a normal life. And I hate that everyone is saying because the young folks want luxury. It’s just not true
His employees know the truth but won’t challenge the boss. It’s inordinately expensive to buy now compared to any point in American history. An average person working an average $50k a year full time job cannot afford a single family home comfortably today. An average worker making $30k in 1990 could afford a single family home comfortably. I’m not saying it’s impossible and I actually did it myself just last year, but I’m saying we currently have to make compromises for homeownership that our parents and their parents didn’t have to make.
I live in the least affordable city in Canada…I worked a second job for 3 years to pull together 20% on a sub 400 square foot shoebox….just to get my foot in the door. People thought I was crazy working all the time and spending nothing on anything - and then buying that tiny home in a sought after neighborhood …but I was able to turn that first home into my current, comfortable home in the suburbs. I agree, make a plan and figure it out. It’s always been pay to play
Man Dave really hates it when reality makes him wrong/ a villain so he has to gaslight his listeners lol and I’m a freaking home owner dude. EVERY WHERE is unaffordable. EVERYWHERE wages do not reflect the cost of living IN THAT LOCATION. sure, you might be able to get a house for 200k in the middle of nowhere, but guess what economic opportunities are in the middle of nowhere lol
@@Will-jg2zs”just crap money out of your ass!” Dude there’s only so much time in a day and believe it or not I like to spend time with my family and do other things too, I shouldn’t have to work 60+ hours to not be middle class
@@nashmonti120 No problem, you are choosing to spend more time with your family then grind out 60 hrs per week. Don't expect home sellers to sympathize with that, they want the most for their money. You will just have to wait a little longer to purchase a home, if you don't already have one. And if you, budget, be debt free, live on less than you make, you wouldn't have to work 60+ hrs a week and feel like you're middle class. Listen to Dave more
My wife and I have bought an 1880 square foot house in RURAL Illinois for $163,000 because we got LUCKY!!!! A different house in the same areas we looked at was sold for $260,000 and was 1575 square feet and it has a collapsing foundation. We got a steal. That was a once in a decade shot we got.
@@hvaball150 I imagine you think you had a good point there. You don't. MY point is that the ENTIRE market has changed, not just cost. People are buying property will little to no knowledge or inspection adding a new factor to consider.
@@hvaball150 You clearly haven't been in the market recently. You literally have to move as fast as possible. I almost didn't close on my house 3 years ago because my funding was delayed by 2 days and the seller wanted to move on to the next offer despite all the paperwork being signed and all the other steps completed.
@@csx6910 it's not new. Decades old. Offers the first day. Heck, I bought in 2010 and offered the day before it went on MLS. It takes minutes to make an offer.
Here in the portland metro area, theyre reporting you need to make 6 figures to get a decent house. My parents bought a house for 160k in 1988, my father sold it for 256k in 2006. That same house is now going for $600k+. The pandemic screwed a lot of people in Vancouver and portland for houses. Its soo far out of reach. I make 55k as a automotive technician and can barely afford rent.
I think deep down Jade disagrees with Dave but puts on a smile for him so she won't get fired. The only one I've seen kind of stand up to Dave on the show is Rachel, and she's the daughter
Dave forgot to mention that you can also choose to elect politicians who are able and willing to change and introduce policies to drive down first time home prices.
Stop yelling. So that house went up 33 times. Pay did not go up that much. In LA and NYC. 60 years ago, you can rent for less then $200 a month. Pay did not go up 33 times. Millionaires so out of touch with reality.
I remember in 1969 my Dad bought a house for $75K and it was an arm and a leg for him, but my parents had divorced the year before and then my mother died and he had 4 kids he had to house. Fast forward 37 years when my father passed away the house was sold for $2.6 million. I was flabbergasted. It was a nice house in an affluent neighborhood, but it was not worth 2.6 million IMHO. It sold quickly. I never would have paid 2.6 million for it. lol!
In 4 years central New mexico is up 25+% . North Western Arkansas where we wanted to move is double. Dave is out of touch with reality. Good man. Wise teacher. Dead wrong on this .
1:19 yes cause it’s True. Says he know housing prices have gone up, yet still tries to justify on how we should be fine with it. And then you got all the ‘Yes Mans’ there that have to agree with him or else. It’s not whining when we’re simply just telling how it is
@@Will-jg2zs that is fine. However, sometimes I think he forgets where he came from. Not everyone is meant to be rich, and times he comes across as being aggronant.
@@Jaybird-be1tt No, I 100% disagree with what you said. Everyone, through good money principles and discipline can be rich in America. It isn't something that one is "destined to be" rich. Rich people do, rich things, like consistently invest in their 401k, stay out of debt, get a marketable skill that is transferrable in the marketplace to make serious cash. All what Dave said here, was spot on.
@@Will-jg2zsSo only the rich deserve to have a home? Screw delivery drivers, food service workers, nurses. First responders. Only CEO’s, brain surgeons, lawyers deserve to live comfortably. Am I getting that right?
@@Cpix38 Yea, that is exactly what I said you clown lmaoooo of course not. I said, rich people do rich people things. Lower income earners can, budget their money, live debt free, cut up the credit cards, work towards an skill/trade that can make them a lot of money. It's called saving up for a home you victim lol but you probably haven't even read this far because you think that poor people are unable to do the things I just mentioned
I work a commission based job. I started in 2021 and made $37K my first year a little over 50K my second and last year I made almost 90K. I've spoken to multiple lenders. They consider 3 consecutive years and then take the average. So even though I will make at least what I made last year for the foreseeable future they will only give me a mortgage based on an income of 60K. Homes in my area are $240-300K for a 3BR/2BA and no one will give me a mortgage. In order for me to afford a decent home I will have to wait at least TWO more years making at least what I made last year.
@@dnllamb Nobody is saying that you have to come up with the entire amount. Budget, and save for 20% then boom, you got yourself a home. It'll take 7-10 yrs paying it off, but that is okay!
Where I’m from, the way they are tackling this problem is by capping who can purchase certain single family houses. These are brand new houses built in a neighborhood, and if you make over a certain amount, you don’t have access to that home. They are also building very nice modular homes (not trailers), which allows the owner to put the home where they want, and it’s income based as well. This will allow the middle class to remain in these gentrified inflated markets.
I'm a Boomer and our first house was furnished with bookcases made out of bricks and boards. Our DR table was a piece of plywood on saw horse with a tablecloth. All our money went to a 7 1/2% mortgage and food. When we lived in Plano Texas 1975 we had cotton fields across from our new ranch, - we were out in the Boonies. Now Plano is a major metropolitan city. It's a process for each generation, - takes time
I really needed this video. I’ve watched too many videos talking about inflation, corporations buying single family homes and the “average home price in America in 2024.” Those may be serious problems but I’m not called to take on the world’s problems when I can’t even figure out my own. My wife and I are going to get out of debt and buy a home someday because our God is way more powerful than any corporation or world super power. Men with nothing to lose may be dangerous but the men who have their entire lives to lose will move hell and earth even if to make a statement to the universe.
The average median income in 1963 was $6,200 a year or half the cost of a $12,000 house. The average median income today is $68,000 and the average median house cost in 2024 is projected to be $395,100. Today’s income is nowhere near half the cost of an average home today.
You can still find homes for 3x gross salary, because real estate is local. Of course, starter homes aren’t as nice as your parents’, and expect to buy an ugly house that needs cosmetic work, updates and repairs. That’s how you create equity in your 1st house and it feels great once you do it. People only see homes after the work thinking they were purchased in beautiful condition. It’s a labor of love. Our parents traded up or bought after a crash or during a deep recession. Boomer generation homes were TINY like under 1200 square feet and didn’t even have garages, carports or fireplaces. They added them later, but still just one car garages because they only owned 1 car, even if both parents worked. And they had like 5 kids to feed, so it took 7-10 years to save for a down payment.
I purchased a new construction build in Arizona in 2022. I now work remotely for my employer and reside in Knoxville, Tennessee. Housing is far more affordable in Tennessee, but the wages are also far lower. It seems to me you either purchase a home on a 30-year fixed rate mortgage (what I have done) or live in a former trap house using DR's recommendation of a 15-year mortgage.
He's a boomer they had it good. It was a easier life for them. Now days both parents need 2 jobs to make it. We can't even spend time with our families because we're always working. This is why our families are being torn apart, and why kids are not getting the proper guidance from the parents, this leads to a lot of dysfunction. This is a big problem in America, whether people want to admit or not.
The problem is in the pebble. About 30 years ago if you worked in the big city you could earn enough to buy in the first ring (Which is the case now if you move to a relatively small city). In 2023 if you work in the city the entire ring is already bought up by people who purchased 30 years ago, which means either you buy in the second ring (and have a 30-60 minute commute), or you up your income to where you can afford the first ring at a premium. Yes prices overall have gone up in comparison to wages but its simply because there is only so much space in that first ring. At a certain point it kind of plateaus, as more and more people move to the area surrounding the primary city, the "ring" that someone starting out in a job can afford moves further and further away people find it is no longer worth it to commute to work... that is when either a separate pebble gets created (a new city that develops the same way) or it just stabilizes.
Yes. That is how a mega city works. You will be swamped if you don't buy during the expansion...until later it will be cheaper to rent. You have to know this and plan accordingly. People who complain just don't understand but think they do. Dave just explained it.
@@hvaball150 exactly, there isn’t an issue with this system it’s just how things work and people have to realize the math. You don’t just get to live in XXX cause you want to.
Housing prices have gone up at a much faster rate than the average salary and that's the problem
The problem is doubling the population in metros instead of leaving. All else is roughly the same or better.
One can argue that the housing costs are a greater portion of someone's income, but the overall economic situation is the same. People blow their money on crap they do not need these days. If they quit doing that, they could actually afford important things like shelter.
True, but just have to save a little longer than usual.
Then work more.
@@NiceOCGuy1981 I work 70 hours a week
What was the point of this video?
Is to rant about how folks can't afford the houses in the areas they want. This is literally a game now. It's pretty much move to a more affordable town, get married, get raises and save until you can afford it. I remember living in NYC and many properties being like 700k. I said nope I'm moving out. Maybe in a few years I will buy something decent around 300k.
It is to rub everyone's nose in it. I listen to Dave Ramsey for entertainment and not advice.
To let you know you are wrong today.
For Dave's funny voices. Because everything else was completely meangingless.
young people are lazy that is why they cannot afford today's housing market. That is his naive notion.
Im curious. What happens to society when Teachers, Nurses, First Responders, Grocery store employees, and Sanitation workers can no longer afford to live in an area?
They’ll have to be roommates yes?
Sad truth ~ they will be renters or purchase town homes. (Yes I see those being built recently).
Or
They will have multiple people on the loan document to boost up the income so they can qualify for the home ~ cosigner
Yes, it sucks. This is coming from a truck driver that finding it hard to make close to 80k unless I drive over the road ~ and that's not even guaranteed income if I do that
@@Sexy40baby1townhomes? Have you seen the prices of townhomes. I own one, last time I checked, it was valued at around $400k. One down the street, the same model as mine, sold for $430k.
@Aki_Lesbrinco yes and also I said multiple people incomes ~ cosigners~ will be needed.
Cost of Living is no longer low anymore. And all employers aren't paying large amounts of money
Rampant theft and huge tax increases to expand social welfare programs.
Dude, I bought my home 4 years ago and it has already doubled in value. I live in a smaller Midwestern city, if I had waited to put 20% down on a 15 year note, I would not be able to afford the apartment i was in or the home I'm in now. It is crazy. 4 YEARS. Not 4 decades.
Real estate often has short term increases like that, but they don't last long - it's pretty normal. The market will run out of steam, then prices will either go backwards or there will be a plateau that lasts for a long time - 10 or 15, even 20 years. Houses will slowly get more affordable again as wages rise. We bought in the early 2000s boom. House prices tripled in our area over 4 years (we bought when they were about half way though the cycle so our house rose by about 50% in 2 years after we bought). My father thought we were insane paying what we did and would never be able to pay our house off. He was losing sleep at night over it! Prices then didn't move at all for 10 years. Around 2011, prices went on the march again for a couple of years and then went stagnant, and now they're risen again. The cycle will continue. The 5% per year or whatever houses have risen over time isn't linear - your house doesn't continually go up year on year (the house we upgraded to in 2014 after the 2011 - 14 price rally dropped by 20% after we bought it and stayed there for 8 years until the current boom). On the raw figures you'd say - look, your house doubled in 10 years, but in reality it didn't. It doubled in 2 years at the end of the 10 years. For most of that time it was worth less than what we paid. No doubt it will now plateau off again or even fall from these highs.
@PrisonerD I get it, my whole point is that Dave acts like it's not a big deal the fact that they are living during a 4 year period where they are making the least they'll hopefully make in their careers while the housing has doubled and pretty much all other vital items have increased 30-100% in that same time frame. "Adjust your sails." Sorry, that was not my experience at all as a young adult starting out and I would have been freaked out too. A little empathy can go a long way for these young adults instead of just saying they're whining and he and Jade laughing about the situation. It comes across as very tone deaf.
The crazy thing, you went against everything Dave says about buying a home.
@NoNo-ng9sl yup. I was debt free and the payment was 25% of my monthly income on a 30 year note. Paying on it as a 15 year without the pressure.
@@Elizabeth_lowkeyluxuries good for you. Glad you made the right decision despite Dave's stubborness....there's two things that annoy me about Dave. 1. Acting as if his philosophy is the only way. 2. Diminishing the reality of the shrinking middle class......he'll go on rants about the Fed or politicians. But then act as if the housing market isn't affected by those decisions.
Stop gaslighting us.. housing prices have gone up wayyy more than what is “normal”. This is statistically proven, not just sentiment. I do agree that we can’t live in victimhood about it, just gotta try harder to make more money and deal with it…
This is essentially exactly what he said.
Yea but people want it said in a way that makes them to be victims
@@James_Hough When does he acknowledge the absurd increase in price? He uses the example of his parents buying a house for 12k, which is roughly 122k today. That is like buying a house with a bucket of strawberries, comparatively.
or ask for parents contribution. At this point its their responsibility I feel.
@@narekmartirosian-r4g That makes no sense.
Dave has no understanding of reality. At the beginning of the video he mentions that his parents bought a house in 1963 for $12,230. In 1963 the median household income in the US was $6200 per year. So the house his parents bought cost about twice the median income for that year. He also mentions that today that house is worth about $400k. And today the median household income is about $74k. So that house his parents bought went from costing about 2 times the US median household income to 5.4 times the US median household income. And later in the video he talks about how not everyone can afford to live in downtown Manhattan. His point is that sometimes there are certain places where the housing is just so expensive that you have to go move elsewhere. He is right. However the problem is that in many, many areas of the country there is no other affordable place to live. For example - if you are a family that has a household income of $85,000 and you are currently renting and living in the suburbs of Washington, DC there literally are NO homes that you can afford within a 100 mile radius. And once you do look far enough away to find a home you can afford then you have to move to a more rural area. And guess what? There are no jobs in that area where you can still make $85,000 per year. But Dave doesn't want to hear it because he is still living in the past. I don't know why he doesn't want to admit that this is a real problem and that it is fundamentally different than things have been in the past.
HINC-04
U.S. Census
Married with children under 18 yrs old
Median household income, all races, $123K
$196K for Asians
the median household income is about $74k
This includes retirees, single mothers, .... Everyone
It is like average life expectancy (everyone) rather than
If you are 65, you have a 50/50 chance of 84
and if you are married at 65 then 50/50 chance of one of you making 90.
So what. Houses can be obtained for $74k x 2 = $148k.
Same style house. Same metro size.
There were 400k people in Nashville then.
There are 1M people in Tulsa today and a house can be bought for $150k. Plenty of them too. The average homeowner in Tulsa makes $90k per year. So it's not even 2x for a house for them.
Running elbows w BlackRock
Don't forget that in 63, it was one income in 2024. it's two incomes, so now you must pimp your wife out to the workforce and let the culture raise your children. And you get to be emasculated and have open borders we a criminal as president and a poison Vax. Dave is probably a leodecian type christian who lets the culture determine what is appropriate and trys do it better. I do like his debt snowball approach though.
Keep whining bud
We closed right before the pandemic hit. Had we not, we would never be able to afford this. Our home jumped 200k in value. Income has increased 1.5-2%. The math doesn’t check out.
Edit to update: it’s over 400k more now! 🤯 this can’t possibly be right.
I feel ya on that one I gave up on thinking of home ownership and just invest into retirement
Us too. Same timeline.
This is the kind of stuff that makes me want to quit watching Ramsey. He is so out of touch with the struggles of everyday Americans.
By which you mean the stupidity of everyday Americans.
You know how our grandparents or great grandparents not only moved out of their city but moved to an entirely new country in many cases where there was literally no roads yet? That's what we need to do. It sucks but I can't think of any other solution for us. We can't even afford way outside the city and we both work middle class jobs. Like if I've ever heard the name of that town then I already know I can't afford it. I need a place where there isn't even a hospital built yet 😂
Why because he understands reality?
Yup 👍
@@luisfilipe2023As a rich person who owns 3 rentals myself,
Biden is not the answer
Dave is sometimes completely unhinged from reality. We are not making it up, houses are extremely expensive relative to earnings. It’s a fact.
Start saving up for a giant down payment for when interest and hopefully prices go down a hit. Buy in your realistic price range.
You’re looking at too high prices then. Either find something in your affordability area, move to a city that has it or rent and save up he’s not wrong
I normally agree with Dave but look at the wage increases on track with the housing increases. Math don’t math in regards to this.
Dave is a pile of crap. It’s obvious. He’s just a nasty person
He needs to be foolish. If he tells the truth. No more viewers to lie to. This country is going to fall and burn. He'll never say anything close to that. I guess car prices have always been like this, too. 1000.00 payments per month.
Easy to say to stop whining about the housing market when wages are stagnant but housing and rent keeps increasing. Just saying.
Facts
Why are wages stagnant? Inflation! Bidenomics.
Bro wages have been the best for all positions since 2019, this has been the best times to switch jobs and get incredible increases as new hires.
@@henryjosuesanchezzelaya142 Mhmm
@@Chromewarrior That's a lie. It was stagnant before him.
I'm just glad we bought in late 2015 our 290k house would go for high 600s now. Our income has gone up but nowhere near 100%
Your one of the lucky one.
No one is paying 600k for your 300k house lol.
@andrewcrizpy Tell that to all the sellers that have sold Here for that price. One a little larger sold for near 800k.
@@markg999why not sell and make the profit then?
@JP-uy9kq We like our area so if we sold any equivalent home be about same price in this area....unless we downgrade or we would have to move somewhere else cheaper. So while we made money out buying power didn't really increase.
A millionaire is out of touch with the average working man. What a shocker.
Of course, all Americans are out of touch with reality. That's the only reason anyone would ever live in America.
In the 60s home prices were less than 3x thr avg annual income, today it's 7x. They have simply because unaffordable for regular people
dave ramsey is ridiculously out of touch with reality. this is not 1997 anymore dave.
America in general is out of touch with reality
You cry because you live outside your means and you don’t save
@@L0kias1 wake up. you can’t budget your way out of poverty bum
😂 1997
Yes it's way better then 97...endless ways to make money
The co-host is the biggest “yes man” in the entire world
All of his minions are. They never deviate from the Ramsey holy scripture.
@@bringforthtruthlmao it’s a cult
Break News... Old man sitting on a portfolio of rental properties tells those paying him rent to shut up and stop moaning.
He needs renters can't blame him
😂😂
The question is, what will you have as an old man? Dont be mad at him for building a successful business and turning those profits into real estate.
Call the wambulance
@@sspann Hopefully I'll have a family that loves me for who I am, and not because I have them and their spouses suckling off my teet.
There’s no way Jade agrees with Dave’s take here lol… but kudos for her for knowing how to play the game
One thing past generations did not have is investors buying up the entire housing market! We aren’t competing with other first time home buyers, we’re competing with corporations that have millions to spend, and millions of mom and pop investors who all want to own 50 houses each. The current market is nothing like the past. Ramsey doesn’t understand that.
where are you getting this info from?
I hate when Dave does this. The disconnect is palpable. He's been rich too long to remember what it was like.
Yes definitely his out of touch he has no clue what it's like same as his daughter
Yes, suggesting to people to find alternatives of places for housing and striving for a better income is so "out of touch." You are the victim he dunks on LOL
@@Will-jg2zswhat alternatives? Im from the bay and i cant find anything within 100 miles where someone can buy a home for less than 500k
@@dogguy8603 Then you have to pivot and make more money, start a business, rent longer. Keep at it, you'll get a home eventually.
@@Will-jg2zs what business can I start that will guarantee me to be a millionaire? Maybe the problem is that nobody who isn't lucky cant afford a house. Maybe just maybe when nobody can afford a home. That the system of broken
Dave is just mad that with the current market, his formulas which haven't been updated since the early 90's no longer are practical for the majority of people.
Why are you still here if you can't accept his principles?
@@LittleMopeHead This has to be one of the lamest type comments. Like "you don't have any right to criticize, you should just leave if you don't follow the cult to the t." Why are you here if you can't accept any criticism of his ideas?
Other argument is people could still follow his mortgage principle, they just feel entitled to a nicer house than they can afford based on his principles.
@@Ryan_DeWitt you can criticize Dave all you want, he's right in this video LOL as he is in most things when it comes to finance/investing/business. You are just mad that you can't control your spending and live below your means 😂
12k in 1963 is worth about 121k today, so given that, the house in Dave's example would quite affordable.
And it exists today too. Or very close. Just not the same city, as Nashville has grown.
You can buy a 3/2 for $150k in America. And it's not a terrible house.
And if your family income is 75k it will match the 2x asking price.
@@hvaball150maybe in a town with 200 people lol, even in rural America housing prices are out of control. In towns with 30k to 100k population a regular house is costing $200k+ .
don't forget that the house in 1963 was 3 times smaller than today, no double garage, no granite counter tops, huge backyard, 1 toilet/bathroom, etc...
@@JonathanGarcia-wz9jj just an example...Tulsa has a 1M plus metro population. Plenty of houses for $150k. But ok, go $200k then. Not much difference. The median house owner makes $90k in Tulsa. It's still affordable.
Sure, there are plenty of $300k houses too. But who says that is a starter home for everyone starting out.
@@hvaball150 lot of us dont make 90k a year.... we make 40-45k if a lot of overtime and thats with hubby as in a trade and busy all the time....we only make it cause we live together with another family member who makes about 55k a yr and they can afford the mortgage but not utilities and food and maintenance so we cover everything thays not mortgage and i clean the house and run things and upkeep outside
If Dave was the exact same person but born in 2000 he would be screwed today.
If
If
If
Go cry elsewhere
No he wouldn’t. He’d still sell all of you broke people a dream and you’d buy it all day long.
Just like he was screwed in 1984.
He WAS actually screwed before. When he went bankrupt. Times were tough.
Shit you can push that to 1985, people born 1985 or later became adults as soon as the economy completely changed, and inflation started to get completely out of control while wages stopped growing, and a ton of middle class jobs were taken overseas because of greedy CEO’s and corrupt politicians
Rich guy says: stop whining about rich people owning everything and shut up and work and die poor while we party. What a surprise!!!
💯
That is literally the opposite of what his show is about.
@@downeykids its not, he pretends everyone can just “get a better job and buy a house if you keep your head down for a couple years”. The economy today doesnt work like that AT ALL for most Americans. Houses on average cost 11.5x the average yearly income ( compared to 3x when David was a worker) , 60% of americand live paycheck to paycheck and risk bankruptcy/homelessness if they have to face a medical emergency, EVEN WITH INSURANCE. The capitalist class has captured capitalism, corporations and billionaires won and have submited the working class completely to wage slavery.
Seriously. They of all people should realize how dangerous someone with nothing to lose is.
@@downeykidsis dave ramsey not a rich boomer telling people to stop whining?
I love how rightly pointing out inequalities in the system that we didn't cause is "victimhood."
It is when you don't hold accountable the people who victimized you. Hint, it's not Dave Ramsey. I like how these politicians get a pass for all the damage they did the past 4 years yet Dave Ramsey stating water is wet brings out the pitchforks... wild.
@@GigaChad_169it’s all politicians though. Trumps reign didn’t exactly go as well as you republicans seem to think 😂
@@GigaChad_169 I'm not giving anyone a pass. It's totally the faul of politicians and wealthy lobbyists and has been done intentionally by design. People like Dave love to call it "math" when it grinds workers down, but the minute their vaunted "free market" starts benefiting workers, then it is their turn to whine that "nobody wants to work."
Blaming the wealthy Boogeyman and the evil politician is simple-minded. There are many factors that contributed to the situation and this is not unique to the United States. Think harder and longer and you might come up with a real solution
Poor thing lol. You need a cookie, VICTIM?
Typical comment from someone who hasnt been a middle-class citizen in a long time. If I didnt buy my house 6 sears ago then I would be crying too being in the housing market.
Right! I got mine 8 years ago.
I bought my house in May 2020 and if I had waiting even 8 more months I wouldn't have been able to afford it and I probably still wouldn't.
So buy now and don't wait longer.
6 years ago I thought houses were overpriced
@matraks224 no get a time machine and go back to 2018
I live in an affordable home I bought in 2015, and I think Dave is full of 💩 with this nonsense.
In 2011, I bought an unmarketable Fannie Mae foreclosure for $50K>>>>
Now, $500K
He is full of crap
How so?
I bought a home in 2016 that was 5x my income at the time. Now my home is valued at 3.6x my income. YOU are full of crap.
@@zachjones2346 either u got a huge raise or u bought in the hood
Housing IS too expensive, and I don't see how my kids will be able to afford life here. My house is now priced at $500,000, it was a starter home in 1998 at $150,000. I left Canada in 1996 to have an affordable life here in FL & my kids are going to have to do the same and leave. If US is going to lose great talent to other countries because they have not controlled inflation & housing inventories. Not wining - just facing reality. If this Country cared about its population, they would not let this happen to our youth.
Or you can just have your kids live rent free.
So your house is now worth 500k and you are complaining? Sell the hours to your kids for 90k then? Oh, no? You’re happy your house went up in value but sad your kids can’t afford a home
@@iati6294 when are they supposed to sell it to the kids and where are they supposed to live if the kids have their house?
I completely agree 100%. The US is about to loose my wife and I Who are professionally skilled upstanding citizens. We are about to leave to another country for a better life and especially because of healthcare.
Inflation is caused by the government. Creating more money to borrow and spend is a perfect recipe for inflation. That raises the cost of everything.
More income is chasing housing. It is greater wealth which is driving up prices. Not everyone is winning. They are now whining.
Government regulation such as zoning and environmental costs are adding to cost and restricitng supply. This is predictable.
Dave come to Cali. I make 160k a year, yet a 3 bedroom in the area I work is 1 million plus. Please explain how I put into my 401k, pay my health insurance, kids bills, etc etc. please. Salary to home price ratio has changed. How do you not acknowledge this?
My wife and I make $150k a year. It will still take us 3-4 years to save up a 20% down payment to buy an average house in our area. Most of our friends are making closer to 70k together. With rents at 2k for a 2 bedroom apartment not in the Hood it’s freaking hard to save for a down payment. Out of touch Dave
Same here. Household income 220K one debt left 90K student loan. Our rent was 2K now is 2.5K our broke friends bought 580K house 2 years ago with 3% rate. Their payment is 3K pretty soon we will pay that for the rental. I used to like Dave but he just became old grumpy out of touch man. I just can’t listing him anymore.
Dave is trying to tell you that you are the one out of touch. You aren't listening...
Move to a better area and stop whining
You’re making $12,000 a month and your $2,000 rent is holding you back? Something ain’t adding up. Are you both driving brand new luxury cars? Most people’s rent or house payment is half of their monthly income.
@@Ffmt-ri3ti I agree with you. How is CatsandBourbon making 150k a year and struggling? Makes no sense, clearly their expenses or spending is off the charts. Either cut a lot of unessential things from your budget, or move in with family etc to save
My parents bought their home with 4 kids. It was a 3 bedroom, 1 bathroom house. So us girls had to share bedrooms. It wasn't anything fancy but it was a nice house in a nice neighborhood. Now days people have 4 kids & they think they need a 5 bedroom, 4 bathroom house with granite countertops, stainless steel appliances, office space, etc. People's taste is what has kept many from being able to purchase a house.
Before I went to college, the starting salary for the field I went in was $65k, and you could get a 4 bedroom house for around $350k.
Now that I got that $65k job, the same exact house is $550k. The type of house im aiming for is currently around $300-$350k, but by the time I get the down payment for that, its price will probably be even more outrageously high.
Housing prices have gone up 1.5-2x over the past few years, and those of us who are starting our careers are discouraged, but the man with many millions of dollars in real estate is telling us to "stop whining"
I can promise you, living in a normal city like tulsa, ok or hershey, pa comes with sacrifices from the housing crisis just like san jose and new york city. The problem is everywhere. I am tired of the New York and California comparisons. We are all having to purchase homes that are far worse in quality due to affordability, EVERYWHERE in the US. To those who purchased a home 4-5 years back, you are extremely fortunate that you could do so considering those of us who have never purchased a home will have an even tougher time now than ever before in history.
I know that I'm extremely fortunate to have bought in 2020 and being able to have achieved home ownership is just incredibly lucky on my part. However, I think it's important to realize that everyone is struggling to varying degrees. I bought in an area that was expected to get better but sadly it is getting worse but with the current market we realize we are pretty much stuck. A lot of my neighbors are older and in retirement. They would love to downsize but everything is unaffordable. Selling their house would be easy but finding a new place would be nearly impossible, unless they took Dave's advice and moved 100miles away from their family and way of life, which is the worst thing you can do to someone in their golden years.
Bro what are you talking about Dave?! I make a 100k a year and I can’t afford a house in ALABAMA
lol yes you can stop it.
In construction the wages have dam near stayed the same for 20 years so dam right middle class is gone
Then you need to specialize in construction or find a better trade. If you are a general grunt, yea you won't make a lot, that is why you have to move up and get some skills to do bigger things, like the wrecker, crane operator, truck driver. But to say that wages have been stagnant for 20 yrs is a total lie LOL
This is literally insane, he's telling people to move out to the sticks where there are no jobs, then you will be able to afford a house? People aren't crying about not being able to afford a house in a beautiful area, they can't afford any house at all Dave.
Back in the 90's, I had a young woman, I worked with, a Lethal Entry Tech
she was clearing $200K/yr,
The job site was one square mile of dredge coral sand, 800 mile away from any other land.
She was buying a home in AZ, $10,600/mo, 0% interest, 2 year term.
move out to the sticks and stand under a money waterfall.
Yes and in the same freakin breath he will tell you to not work remote.
And crying is a waste of time.
He's not telling you to do anything if you bothered to listen. He said, something has to change despite what is going on with the housing market. He also suggested to raise your income level, did you bother to hear that? No, you didn't lol relax victim
Same guy who is against remote work btw
These people don’t understand the animosity they are creating against rich and older people
Did they hurt your feelings? 😂
@@martinmi5 yes, screaming and crying rn
@@jonsnow9762 😂
No doubt
Looks like someone's going to be an honorary guest for next year's World Economic Forum.
Perfect comment!!! 👏👏👏 “You will own nothing and be happy.” Now, “Quit whining.”
HA HA HA HA this wins the Internet today!
This does a beautiful job of showcasing how out of touch Dave is with reality. It has NOT always been that way. In the 50s, you were able to BUY A HOUSE as a FRY COOK. Was it tight? Yes. Was it possible? Yes.
Is it possible now?
Never made more than 55k a year- wife has not worked outside of our home. We bought a house. Had to make concessions about where we lived, and what we spend. People have to make hard choices, but complaining about it isn't going to fix the problem.
Nope and he knows that. He’s a banker shill for their fiat ponzi scheme
In the early 2000s, my parents bought a $105k house on a combined income of just under $55k. That same house is worth just under $500k. I now make slightly more than double their combined income at the time and I couldn’t afford to buy my same house. In just 20 years things have changed that much
Love it he just removes the truth from his post. My replies have gotten deleted cause he’s a banker shill. He knows it and deletes peoples posts
@@TK-431 Alright, let’s get the context you so conveniently left out. When did you buy and where? I’m in Seattle. You’re not touching ANYTHING in this state, ANYWHERE, at about $23 an hour.
Dave needs to stay out of this conversation. If he wasn't a millionaire he'd be "whining" too. It's not about location at this point. Everywhere is expensive. And offered incomes are not keeping up.
Tulsa homes can be bought for $150k or less. And the median homeowner makes $90k.
Real estate is almost all about location and timing.
But people have made way more money than their parents and grandparents, what are you talking about. Maybe the whiney house seekers need to budget better, get better jobs, vacation less and eat in more. They won't because they want everything and just want to blame the other generation. That is why Dave, deservedly, clowns on you all LOL
@@hvaball150those homes in Tulsa probably need 6 figures of work on them, that’s why they are so cheap.
@@nashmonti120 make a 5 minute web house search before saying this. You wouldn't say it then.
$50k might require $100k of work. But most of the $150k are move in ready.
@@hvaball150 I just think you are full of shit, and if they are that cheap it’s for a reason. Every where I’ve ever lived the cheap houses are in the shit part of town
I like how he acknowledges that it is really hard, then races past it to make the reaction to it the problem. “It’s a shame that you’re in pain, but I shouldn’t have to listen to you.”
He’s an arrogant jerk. Funny how the Boomers who have the majority of elected positiins and will continue to keep them due to their demographic size tell the youth to do something about it!!! They rigged in in their favor and we have no options, yet they tell us to change what they control!!! Pure evil!
He's right though. Victims like most ppl online, would rather b*tch and whine then get anything done LOL
@@Will-jg2zs Boomers created the problem. Who bought homes cheap, then got the majority of the political positions, then pushed policies to send their equity through the roof? And then for them to say stop whining?!?! That is beyond insidious
We just closed on 2/15/24. We paid $425K and the people who bought it 10 years ago paid $212K. The house was built in 1970 and its 1700 sq feet. Located in South Jersey. Sucks but we are grateful to even have a house.
10 years ago houses were insanely cheap. Now we are returning to near normal.
You should have bought then.
You will be absolutely fine today though. You will sell for double too...
They bought that house for $12,230 when the median household income was $6200.
If that home is worth $400k now, it has gone up 32.7x in value.
Median household income is $77,397, or 12.5x since 1963.
Home prices are up 260% relative to income using your own numbers.
Median doesn't matter. They don't typically buy houses. And it doesn't represent a total amount of worth (we would have an $8T GDP then if everyone made the median).
The true median income of an American is $0. We don't count large swaths of Americans to get to a false median. They can't afford a candy bar.
The median home owner makes about $140k.
The average American makes about $150k.
**HERE IS THE MATH PEOPLE** According to the US Census In 1963 the average US household income was about $6200 per year. So that means Dave's parents paid about 2x their annual salary at 4.5% interest as he stated. TODAY, the average US family income is about $77,000 per year and the cost of the average home right now is about $385,000 with current 30 year fixed interest rates of about 7%. So that's about 5x the annual salary. What does this all mean?.... The average price of a home right now is about 2 and a half times more expensive today than it was in 1963. If you factor in the higher interest rated that puts it at more like 3 and a half more expensive. Not to mention all of the other expenses like food and utilities are exponentially more expensive compared to the lower rate if increased family income. Dave Ramsey does not understand math at all. The bigger issue is the fact that we now live in a global economy, a problem that his parents never had to deal with and guess what, America is sliding on the global economic level while places like China and India are catching up. Dave's parents home went up 33x in value over 50 years, do you really think your 400k home today will be worth $13 million bucks in 50 years? Heck no and you know why, IT'S THE GREEDY UNREGULATED GLOBAL PRIVATE SECTOR. THEY WILL HAVE EVERYTHING AND YOU AND I WILL HAVE NOTHING! But we do have shorter life expectancies and higher retirement ages to look forward to so flip a coin because if you're under the age of 50 living in American you basically have a 50% chance of being dead and buried before you reach retirement age. The irony is that we will all be slaves, regardless of our color. As our society collapses perhaps this is perfect irony for us white folks, that we should become slaves along side all of our fellow American slaves to the corporate greed. I guess karma is a bitch.
For how much emphasis Dave places on having a family and having many children and grandchildren, he sure doesn't seem to think that a median house should be affordable to start said family. A responsible couple will not start a family until they have enough money to buy a place they can afford and that is suitable to start a family. The problem is because house prices have inflated so much faster than wages, by the time that couple saves up enough, biology bites them and they can't have children at all. You can't have it both ways unless you want to raise a family in a crappy apartment in the bad part of town, which has an influence on the children and how they turn out whether you want to admit it or not. You can't have it all ways. So either you go anti-natalist to afford the house that you would have used to start a family, or you bring up your family in a negatively influencing environment. Those are not good choices for most people.
My home is up 100k from when I bought it in 2019. That's a 31% increase. My income has gone up like 4% in that same time. Between the price increase on the home and the increase in interest rates on homes now, I couldn't touch my house today.
Did the population grow? If it did, prices go up more. You won't buy the same house for the same price or even same relative price. Often one can't afford to re-biy their same house. This is normal.
Nah, you would just have to make more money, budget for a bigger house down payment and consistently stay out of debt. If you were searching for a home, you could do it.
I'm now retired and own my home outright. MY next move will be to the cemetery! SO glad I don't have to try and cope with this housing market!
I'm not even retired and I feel the same way. I can't afford to move and buy again unless I want to be in financial stress
A house down my street in Corona, CA is going for $839k! 3 bed, 2 bath, and 2000 sq ft home. Next to the freeway with homeless around. Tell me again that housing prices aren’t too high!
3/2 in Tulsa.
@@hvaball150 I should move to Tulsa.
@@ryukirito2616 or somewhere where house buying is supported. If you can tolerate that place 😀.
It sounds like you live in a rental area, so if the rent is fine stay there and ignore houses.
Millenial with a paid off house: I was considering selling my current house and going even further from a metroplex. I can only afford to buy a couple acres of undeveloped land. Then I'd live like a hobo in a tent on my empty land. This is all after my house value went up $150,000 over 4 years. I'm fortunate enough to have a paid-for house, but now it feels like I'm trapped here.
No, you can sell your house and buy one some where else. Most likely.
Betchya the zoning laws prevent ya from camping on said raw land, i know cause i have had similar thoughts
@@travisfyne9316 for 2 acres, generally one can obtain a permit to live there. Or perhaps a bit more than a tent...like RV or mobile home. However, yes you are right that some areas will not allow it too.
For the amount of money he was talking about ($150k plus what he bought it for), he could buy an entire hunting camp already setup! Business in a box...
I will never stop whining about it. My boomer parents paid $20,000 for their house. I can buy maybe a teepee with that.
Yes, houses were cheaper but salaries were also a LOT lower. Our first house 1971 was a horrible fixer-upper for $15,000 but my engineer husband and I only had combined income of $17,000!!!
@@macpduff2119I would give my right arm to find a fixer upper house in my area that's just slightly above 1 year of my salary... Houses in my area are now 6x our household income. Y'all had it good.
@@macpduff2119 average house prices were '$23,000" back in 1970 which calculated for inflation is $176,000 in today's money (not even close to the 400,000 average today. Australia even worse its about $600,000 USD across the country
@@zeloto exactly thanks for pointing that out. My parents say the same thing - "wages were lower" ..
Then that makes you a victim, cry harder.
What Dave should acknowledge here is the Ramsey "15 year fixed spending no more than 25% (or whatever their figure is) mortgage" mortgage for the average family is getting damn near impossible for most households.
Home owenership in general is damn near impossible for most households, so...
My wife and I rent an apartment with her yoga instructor. I'm glad my wife has company while I am at work.
In 2019, the average salary for my position in DFW is $50k. In 2024, the average salary for my profession in DFW is $50k. I got forced out of Dallas in 2023 when my rent went up $200. I now live 1 1/2 hours north of Dallas in the middle of nowhere back at home working 3 jobs trying to save up for rent and I can’t even almost save up for the houses here in the country.
Calling a spade a spade is not whining. We can say it’s hard and that doesn’t mean we’re lazy. We can say the systems broken and in that doesn’t mean we’re whining. Honestly find it so embarrassing when Boomers talk like this. You have a lot of good advice, Dave, but you’re wrong for speaking down to us like this.
in 1957, my Father bought a $6K home,
>>> at $3/hr wage.
LESS than a year's worth of wages.
That home is Now $500K.
OMG, it should be $80K.
Why? Is the population the same as when he bought it?
@@hvaball150
I bought my house in 2011 for $50K.
ONE YEAR'S worth of Wages.
I make $80K, now
That is why the:
OMG, it should be $80K not $500K.
@@hvaball150 More than 100 million more people competing for the same amount of land. People would rather cry instead. lol
@@aolvaar8792 my question remains unanswered. I'm answering your logic flaw for you. Population.
@@zachjones2346 the rate is even more dramatic than that in some metros where median prices are calculated. 6x, 10x the people.
In the mid 1950's, six town homes were built across from our Bronx NYC home. We lived in a nice neighborhood of single family homes near bus and subway lines. I remember my parents gripping about their outrageous price of $12,000-$14,000!!. Zillow lists the same townhouses today selling at $750,000 - $790,000! I make my point!
The average house price in my country has risen from 180k to 500k (!). The average salary has risen from 32k to 40k. But boomers that have made their money and still make their money in property keep laughing in my face while telling me my generation just sucks.
Every house that is selling for 500k+ has on average 50 people trying to buy.
Dave you lost the plot, mate. This is the last time I have listened to you spouting your outdated advice. I hope your kids know better or else they will never ever succeed in this new world. Unsubscribed but I wish you the best. Kind regards from the Netherlands 🇳🇱
Bye 😂
@@Daph2023 Duplexes are not allowed to be lived in over here, nor trailers nor any other alternative housing. Our pulsation grew from 15 million people to 17.9 in a few years, no houses were built whatsoever.
Indeed if I want a house I have to be the first amongst the fifty and pay 200-300k more so the others don’t still buy it. 800k for one of the cheapest homes. Dave is not right sometimes, and this time it’s to big for me to take him seriously ever again. The only thing I can and will do is emigrate from here to somewhere better. It’s the only way for us.
Bye, Felicia.
Noooo. In Australia, Even in the boondocks of small towns, houses are breaking the $1 million dollar mark. I am doing what I can about the situation, but I will continue to complain about this situation
I bought a home right out of college in 2012 for ~$115k. That same home today is $250k+. I had to sell my home for less than it was worth due to marrying the wrong person. And now I’m making more money, plus working a second job where I make equally as good money. Still can’t afford the payments on a $250k house. And I can’t move any further out, I’m already in the country. Dave is just out of touch on this one.
Here in Houston, Tx as early as 10 years ago, you could buy a new house for $80k. Those houses are easily worth 225k. When wages didn’t multiply by 2.5
So he wants us to cash flow a $30-$50k college degree, take on no debt, save, then live on the ring 100 miles away from town because it’s all that’s affordable? GOD he’s so out of touch.
If you invest like, $10-15k in a 529 account from when your kid is 1 yrs old to 18, that will cover more than you need for college. Also that is not even investing anything else into it either lol, being debt free is easily attainable and what everyone should strive for so they can afford college and that goes into your third victimhood point. Being debt free will allow you to buy a home closer to work, or where you want to live because you will have the margin to save up for a bigger down payment. You are out of touch LOL
@@Will-jg2zs yeah, but my parents (along with millions of others) DIDNT invest $10-$15k in an account for college, so your point is moot. I’m not trying to be a “victim”- I live within my means, and I’m on the ring 40 miles outside of the city I work in, I just think his idea is out of touch.
No Dave house prices just went up 25 to 40% depending where you live but our salary only went up 3 to 5 so there's a big difference
Shut up Dave!
victim LOL
The arrogance he has while being completely factually wrong is astounding
Sure, I could buy that $500K house today from his grandparents. Except the house my parents bought is now $1.6 million...The townhouse I did buy 12 years ago, I couldn't buy today either. there is a thing here.
Real Title: Man in Glass Castle throws bricks.
It's housing prices relevant to wages that's the issue. Dave always ignores this factor. back when his grandparents bought a house, women typically didn't work, there were less immigrants in western countries (don't make this a xenophobic thing, it's just fact) and jobs couldn't be done online by someone else in a different country.
My point being: There's SIGNIFICANTLY more competition in the job market these days and thus wages are exceptionally low comparative to the astronomical asset price inflation we've seen, particularly over the last 3 decades.
Affordable housing simply doesn't exist anymore. In the same Metros where people are spending >50% of their take home pay on rent we're also seeing record levels of cash purchases. The majority of house buying is currently being done by the extremely wealthy.
It's the same thing with the record levels of migration to cities we're experiencing in the west. People are flocking towards said rich people for work. Columbia has a smaller population than the UK but several cities that eclipse the size of London. Why? Because living out in the countryside is too expensive. The west is becoming an ever increasingly unequal country and unequal countries don't have cute little towns for ordinary people, they have slums for ordinary people.
To say "it's the same as it always has been" is factually wrong. The middle class is dying. Wealth disparity is growing. The west is falling.
I don't mean to doom post but the facts all state this. I also say this as a man who is in the top 10% in terms of net worth for my age. And even I feel broke.
Never made more than 55k a year- wife has not worked outside of our home. We bought a house. Had to make concessions about where we lived, and what we spend. People have to make hard choices, but complaining about it isn't going to fix the problem.
@@TK-431 Totally agree but that doesn't change the facts.
So blame immigrants?
Average wage was 10 cents an hour back then.
@@amireallythatgrumpy6508 what time are you talking about? 1963? The average wage was 2.98 😂not 10 cents
The current wage to house price ratio is not the same as it was for your grandparents back in 1960. It’s not comparable.
Imagine being some finance expert but you’re this out of touch with reality 😂
You boomers really have no idea how easy you people had it compared to now.
America is out of touch with reality.
We are in a super good position and the lucky ones, and I still get annoyed how people don’t realize how dire the situation is for younger millenials and gen z.
We’re millenials, bought our home in 2016 for 248k on an income of 74k. A modest 3 bedroom ranch from the 70’s. We are now at 125k and our house is worth 410k. That’s insane! We would struggle buying this same house now on an average income. Even with this pretty high income I think it’s crazy what the monthly payment would be given the higher interest rate. It’s not normal! I count my blessings every day we already own a home. But we are also making sacrifices in housing now as we are expecting our 5th and will have 4 boys in a smallish room. Ideally we would’ve moved up in house now, but we can’t and also are just not willing to pay so much more money on a house. It just feels out of touch to what the problem actually is. People are making A LOT of money and still can’t live a normal life. And I hate that everyone is saying because the young folks want luxury. It’s just not true
His employees know the truth but won’t challenge the boss. It’s inordinately expensive to buy now compared to any point in American history. An average person working an average $50k a year full time job cannot afford a single family home comfortably today. An average worker making $30k in 1990 could afford a single family home comfortably.
I’m not saying it’s impossible and I actually did it myself just last year, but I’m saying we currently have to make compromises for homeownership that our parents and their parents didn’t have to make.
I live in the least affordable city in Canada…I worked a second job for 3 years to pull together 20% on a sub 400 square foot shoebox….just to get my foot in the door. People thought I was crazy working all the time and spending nothing on anything - and then buying that tiny home in a sought after neighborhood …but I was able to turn that first home into my current, comfortable home in the suburbs. I agree, make a plan and figure it out. It’s always been pay to play
Another person who understands how real estate works!
Man Dave really hates it when reality makes him wrong/ a villain so he has to gaslight his listeners lol and I’m a freaking home owner dude. EVERY WHERE is unaffordable. EVERYWHERE wages do not reflect the cost of living IN THAT LOCATION. sure, you might be able to get a house for 200k in the middle of nowhere, but guess what economic opportunities are in the middle of nowhere lol
Make more money then, it's not this hard. Dave is 100% right lol
@@Will-jg2zs”just crap money out of your ass!” Dude there’s only so much time in a day and believe it or not I like to spend time with my family and do other things too, I shouldn’t have to work 60+ hours to not be middle class
@@nashmonti120 No problem, you are choosing to spend more time with your family then grind out 60 hrs per week. Don't expect home sellers to sympathize with that, they want the most for their money. You will just have to wait a little longer to purchase a home, if you don't already have one. And if you, budget, be debt free, live on less than you make, you wouldn't have to work 60+ hrs a week and feel like you're middle class. Listen to Dave more
My wife and I have bought an 1880 square foot house in RURAL Illinois for $163,000 because we got LUCKY!!!!
A different house in the same areas we looked at was sold for $260,000 and was 1575 square feet and it has a collapsing foundation. We got a steal. That was a once in a decade shot we got.
We're looking. Know how fast decent houses are going? Two days. Literally. Even if you have the money, you have to be able to move at lightning speed.
Durr... Maybe that good value house will just sit there and wait for you!
@@hvaball150 I imagine you think you had a good point there. You don't. MY point is that the ENTIRE market has changed, not just cost. People are buying property will little to no knowledge or inspection adding a new factor to consider.
@@csx6910 Maybe in your area but in my area houses are on the market for several weeks. Go to a better area.
@@hvaball150 You clearly haven't been in the market recently. You literally have to move as fast as possible. I almost didn't close on my house 3 years ago because my funding was delayed by 2 days and the seller wanted to move on to the next offer despite all the paperwork being signed and all the other steps completed.
@@csx6910 it's not new. Decades old. Offers the first day. Heck, I bought in 2010 and offered the day before it went on MLS. It takes minutes to make an offer.
Here in the portland metro area, theyre reporting you need to make 6 figures to get a decent house. My parents bought a house for 160k in 1988, my father sold it for 256k in 2006. That same house is now going for $600k+. The pandemic screwed a lot of people in Vancouver and portland for houses. Its soo far out of reach. I make 55k as a automotive technician and can barely afford rent.
Dude is the epitome of "OK, boomer"
No intelligent person ever said that (or lived in America)
@@amireallythatgrumpy6508 how did your testosterone test go? How low is your T?
@@olddog4748 Certainly higher than anyone who feels the need to troll with multiple accounts...
@@amireallythatgrumpy6508 sorry about the Low-T, bud. You can do it.
@@amireallythatgrumpy6508 hey bud, have you ever tried docking? Just curious.
I think deep down Jade disagrees with Dave but puts on a smile for him so she won't get fired. The only one I've seen kind of stand up to Dave on the show is Rachel, and she's the daughter
That’s because Rachel knows she’s the only one at the Ramsey Team that will never get fired.
Yes it's great when she puts him in his place too! :-D
Everything is expensive its getting more difficult
Not only are the homes too expensive but often times property taxes are almost just as high as your mortgage !
Dave forgot to mention that you can also choose to elect politicians who are able and willing to change and introduce policies to drive down first time home prices.
No you can't because such politicians don't exist.
I was planing to buy this house in 2019 for $240k but chose to study , now that house is back on the market for 690k. My wages have not gone up 2.8x
Stop yelling. So that house went up 33 times. Pay did not go up that much.
In LA and NYC. 60 years ago, you can rent for less then $200 a month.
Pay did not go up 33 times.
Millionaires so out of touch with reality.
No their not.
Of course, you pick LA and NYC as your metric of a cost of a house. All over the country, houses don't start off that high.
Got news for ya. Houses didn’t appreciate. Your dollar worth less as they print it into oblivion but hey keep listening to boomer tales
AMERICANS are out of touch with reality. That's the only reason they think they live in the greatest country
@@lot2196 Their not what?
I remember in 1969 my Dad bought a house for $75K and it was an arm and a leg for him, but my parents had divorced the year before and then my mother died and he had 4 kids he had to house. Fast forward 37 years when my father passed away the house was sold for $2.6 million. I was flabbergasted. It was a nice house in an affluent neighborhood, but it was not worth 2.6 million IMHO. It sold quickly. I never would have paid 2.6 million for it. lol!
For someone who claims to use math, you seem to LOVE ignore it when you cant use it for your narrative.
In 4 years central New mexico is up 25+% . North Western Arkansas where we wanted to move is double. Dave is out of touch with reality. Good man. Wise teacher. Dead wrong on this .
All Americans are out of touch with reality. That's the problem.
1:19 yes cause it’s True. Says he know housing prices have gone up, yet still tries to justify on how we should be fine with it. And then you got all the ‘Yes Mans’ there that have to agree with him or else. It’s not whining when we’re simply just telling how it is
If you're a multi millionaire is easy to talk about the housing market.
He got that way by following principles that he tells other people to follow. Nice try though.
@@Will-jg2zs that is fine. However, sometimes I think he forgets where he came from. Not everyone is meant to be rich, and times he comes across as being aggronant.
@@Jaybird-be1tt No, I 100% disagree with what you said. Everyone, through good money principles and discipline can be rich in America. It isn't something that one is "destined to be" rich. Rich people do, rich things, like consistently invest in their 401k, stay out of debt, get a marketable skill that is transferrable in the marketplace to make serious cash. All what Dave said here, was spot on.
@@Will-jg2zsSo only the rich deserve to have a home? Screw delivery drivers, food service workers, nurses. First responders. Only CEO’s, brain surgeons, lawyers deserve to live comfortably. Am I getting that right?
@@Cpix38 Yea, that is exactly what I said you clown lmaoooo
of course not. I said, rich people do rich people things. Lower income earners can, budget their money, live debt free, cut up the credit cards, work towards an skill/trade that can make them a lot of money. It's called saving up for a home you victim lol but you probably haven't even read this far because you think that poor people are unable to do the things I just mentioned
I work a commission based job. I started in 2021 and made $37K my first year a little over 50K my second and last year I made almost 90K. I've spoken to multiple lenders. They consider 3 consecutive years and then take the average. So even though I will make at least what I made last year for the foreseeable future they will only give me a mortgage based on an income of 60K. Homes in my area are $240-300K for a 3BR/2BA and no one will give me a mortgage. In order for me to afford a decent home I will have to wait at least TWO more years making at least what I made last year.
Home prices are way the f too high
make more money then
@Will-jg2zs doing my best to do so, but home prices are still way too high
@@dnllamb Nobody is saying that you have to come up with the entire amount. Budget, and save for 20% then boom, you got yourself a home. It'll take 7-10 yrs paying it off, but that is okay!
Where I’m from, the way they are tackling this problem is by capping who can purchase certain single family houses. These are brand new houses built in a neighborhood, and if you make over a certain amount, you don’t have access to that home. They are also building very nice modular homes (not trailers), which allows the owner to put the home where they want, and it’s income based as well. This will allow the middle class to remain in these gentrified inflated markets.
I'm a Boomer and our first house was furnished with bookcases made out of bricks and boards. Our DR table was a piece of plywood on saw horse with a tablecloth. All our money went to a 7 1/2% mortgage and food. When we lived in Plano Texas 1975 we had cotton fields across from our new ranch, - we were out in the Boonies. Now Plano is a major metropolitan city. It's a process for each generation, - takes time
I really needed this video. I’ve watched too many videos talking about inflation, corporations buying single family homes and the “average home price in America in 2024.” Those may be serious problems but I’m not called to take on the world’s problems when I can’t even figure out my own. My wife and I are going to get out of debt and buy a home someday because our God is way more powerful than any corporation or world super power. Men with nothing to lose may be dangerous but the men who have their entire lives to lose will move hell and earth even if to make a statement to the universe.
A milllionaire with a massive real estate and rental portfolio thinks we shouldn’t whine about the price to purchase?
Shocking!
The average median income in 1963 was $6,200 a year or half the cost of a $12,000 house. The average median income today is $68,000 and the average median house cost in 2024 is projected to be $395,100. Today’s income is nowhere near half the cost of an average home today.
You can still find homes for 3x gross salary, because real estate is local. Of course, starter homes aren’t as nice as your parents’, and expect to buy an ugly house that needs cosmetic work, updates and repairs. That’s how you create equity in your 1st house and it feels great once you do it. People only see homes after the work thinking they were purchased in beautiful condition. It’s a labor of love. Our parents traded up or bought after a crash or during a deep recession. Boomer generation homes were TINY like under 1200 square feet and didn’t even have garages, carports or fireplaces. They added them later, but still just one car garages because they only owned 1 car, even if both parents worked. And they had like 5 kids to feed, so it took 7-10 years to save for a down payment.
I purchased a new construction build in Arizona in 2022. I now work remotely for my employer and reside in Knoxville, Tennessee. Housing is far more affordable in Tennessee, but the wages are also far lower. It seems to me you either purchase a home on a 30-year fixed rate mortgage (what I have done) or live in a former trap house using DR's recommendation of a 15-year mortgage.
Exactly!!
Only 1 percent of the population can afford the average home in US. You cant tell me this is sustainable.
Millennial who has been able to purchase… unsubscribing. Done listening to his nonsense
I agree, complete nonsense.
Buh-bye!
Savage dave owned ya
@@cutehumor cute! Such an educational response 🥴
Only stupid people unsubscribe to anyone for any reason.
Folks from out of town drove prices up here. You can tell who they are by waving at them and seeing their surprised reaction.
He's a boomer they had it good. It was a easier life for them. Now days both parents need 2 jobs to make it. We can't even spend time with our families because we're always working. This is why our families are being torn apart, and why kids are not getting the proper guidance from the parents, this leads to a lot of dysfunction. This is a big problem in America, whether people want to admit or not.
The problem is in the pebble. About 30 years ago if you worked in the big city you could earn enough to buy in the first ring (Which is the case now if you move to a relatively small city). In 2023 if you work in the city the entire ring is already bought up by people who purchased 30 years ago, which means either you buy in the second ring (and have a 30-60 minute commute), or you up your income to where you can afford the first ring at a premium. Yes prices overall have gone up in comparison to wages but its simply because there is only so much space in that first ring. At a certain point it kind of plateaus, as more and more people move to the area surrounding the primary city, the "ring" that someone starting out in a job can afford moves further and further away people find it is no longer worth it to commute to work... that is when either a separate pebble gets created (a new city that develops the same way) or it just stabilizes.
Yes. That is how a mega city works. You will be swamped if you don't buy during the expansion...until later it will be cheaper to rent. You have to know this and plan accordingly.
People who complain just don't understand but think they do. Dave just explained it.
@@hvaball150 exactly, there isn’t an issue with this system it’s just how things work and people have to realize the math. You don’t just get to live in XXX cause you want to.
Coming from a rich man 😂😂