My Response To Dave Ramsey

The YouTube Creator Academy:

My ENTIRE Camera and Recording Equipment:

[doubledipper]

If the housing market doesn’t go down, my salary needs to be increased.

[Deadeye]

One of the biggest problems with having huge equity in people's homes is that yeah, you can sell your house, but you can't buy another house where you live. It's a different kind of being locked in. Unless you are selling and leaving for the countryside, you are still stuck in your house just as if it was underwater.

[christine]

My husband and I are both in our 30’s, military veterans, college graduates with great jobs and STILL cannot afford a home in our state. We don’t even want anything fancy, just a 3bd/2bath with a garage and basement. Can’t find that under $450k. We have no choice right now but to just rent a small apartment. It’s so disheartening. Really hoping things change soon.

[markbrier]

Here is what you missed. Your entire thesis rests on the premise that people will continue to have good enough jobs to sustain the massive increase in mortgage payments. I’ve lost my job several times over the multiple recessions I’ve been through but my my morgage payment was always low enough that I could be be out of work for a year or more before I would need to consider foreclosure. Millennials
have such high mortgage payments that they are in real trouble in just a couple months should they lose their job.

[Droid]

The average American is being priced out of a home all you have to do is look at Home Price to Median Household Income Ratio chart to see that housing prices are way overvalued.

[lawnside]

“Sell everything and get ready to live off eating beans and rice” - dave Ramsey

[Samalva]

When is Dave Ramsey going to be on the ice coffee hour??? Been waiting the longest for this podcast

[ballermilw]

I think the big thing which is being missed by a lot of these millionaire youtubers is that most Americans simply don't have the income or salary to afford a home. Whether a collapse economically makes sense due to supply and demand is almost the wrong question to ask---because if honest, hard-working blue-collar families can't afford a home they will elect politicians who will do something about it (or it will eventually lead to unrest 🤷‍♂️). Then it goes from being an economic equation into being a deeper psychological, political question.

[codyanderson]

You’re missing the whole point. Wages aren’t keeping up with inflation. I couldn’t afford a house in 2018. I can’t afford a house today.

[Never_quit]

Listening to him talk about the housing market is like listening to a stock broker trying to sell you stock before the market collapse. Conflict of interest?

[FosterFarmsOk]

the way I can tell the housing market is crashing is by how hard realtors and bankers I know in my area are pushing listings on social media. They never had to market them before they just sold easily.

[AchillesWrath]

Depends on where you live and a lot of other factors. A lot of carpenters who were in the trade of building houses in 2008 got out and found something else to do for work instead. This left a shortage of skilled workers which we're seeing now for new construction. They can't keep up with the demand which has pushed up price on existing homes. Even painters want $50 hr now because there aren't enough of them and people are willing to pay it. The housing market may soften because of a recession but it won't collapse. The demand and growth in population will always be there. People need somewhere to live.

[kaspju]

I love how we assume these millenials can afford $400k+ homes at a 6-7% interest rate, or even be approved for these loans without some kind of shady tricks. We keep taxing them at the pump, at the grocery store, and at the car dealership. But crap, I forgot my rose colored glasses… I like how we look at the peak of 2007 (incredible speculative building) as any type of marker for what to look for going forward.

This is why the economy will burn, this cannot be sustained. The system is completely broken, and will have to burn to right the ship, there is absolutely no other way.

[TomasBMW]

There is no such thing as a "Real Estate Market", there are 1000's of Markets. What if a weatherman gave a forecast for the weather in America tomorrow? He just averaged out all the temperatures, humidity, and wind direction. His information might be "accurate" in accordance with the historical data, but it's completely useless for the individual. So with Real Estate you have to focus in on one region, since all weathers and temperatures are going to vary depending on where you're looking. Some places will stay steady, others not so much.

[Yutaweeb]

Most people whether renting or owning are easily paying 50-70% of income towards housing expenses. This can only be sustainable for so long..

[sirpercival]

When Lake Mead hits "Dead Pool" Vegas will become a Ghost Town !

[ebessett]

Graham, as a Gen-Xer, love seeing millennials like you being successful and helping to educate us all using hard data. Highly recommend checking out the Reventure Consulting YouTube page. Would be great to see you and Nick have a discussion about the data and both of your interpretations. Maybe on Iced Coffee Hour?

[LearntoMakeHonestMoneyOnline]

Dave Ramsey is a wolf in sheep's clothing 👎

[ThePlainBagel]

It's funny, there are a lot of similarities in terms of supply when it comes to housing and oil. Home constructions were booming leading up to the 2008 crisis, and then as defaults rose, new supply crashed as businesses were spooked out of the area. Oil basically experienced the same thing; just before the pandemic, shale oil companies flooded the market, caused prices to fall, spooked companies out of increasing production, and since then supply has been really constrained. Even with oil at $100 a barrel, companies are really reluctant to add more capacity; it seems investors are slow to forget past pain. There are obviously fundamental differences between the sectors (housing has a brighter future than oil), but seeing the housing construction chart made me think of the comparison.

Really good video Graham, a lot of interesting data all nicely tied together. Well done!

[WorldAccordingToBriggs]

I think there will be a small drop and then a plateau for a couple years.