Dave Ramsey has a brutal message for first-time homebuyers | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Once a core part of The American Dream, buying a home has become something of a fantasy.

Record-high home prices, limited inventory, climbing mortgage rates, and depressed economic conditions are all factors that have pushed homeownership out of reach for many.

First time buyers, in particular, are having a hard time breaking into the market and getting that key. In fact, a November 2025 report from the National Association of REALTORS found that the share of first-time home buyers had dropped to a record low of 21%. Meanwhile, the average age of a first-time home buyer had risen to 40-years-old.

“The share of first-time buyers in the market has contracted by 50% since 2007 – right before the Great Recession,” National Association of REALTORS Deputy Chief Economist and VP of Research Jessica Lautz said in a statement. “The implications for the housing market are staggering. Today’s first-time buyers are building less housing wealth and will likely have fewer moves over a lifetime as a result.”

Dave Ramsey’s has blunt advice for first-time home buyers

In a recent interview with Fox Business, financial personality Dave Ramsey shared some brutal advice for first-time home buyers: they’re screwed, unless they address the debt first.

“I’m afraid I have to tell you the truth, and that is that corporate America has screwed you,” Ramsey said.

“Car debt is at an all-time high… Student loan debt is at an all-time high… And of course credit card debt, thank you to the big banks, is at an all-time high,” he continued. “When you’re drowning in personal debt, you can’t afford to buy a house!”

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In November 2025, the average Gen Zer was in $34,328 of debt and the average millennial owed $132,280, according to data collected by credit reporting agency Experian.

“That’s what’s happened. We’ve had these big companies, the car companies, the banks, and Congress with the student loan debt screwing these two generations [millennials and Gen Z] at a record like never before.”

But all hope is not lost. According to Ramsey, buying a home is still within reach for these younger generations if they take aggressive steps to address their debt.

“What we’re finding is lots of Gen Zers, lots of millennials able to buy a home when they fight through and sell the stupid car and get rid of these debts. Our message to Gen Z and to millennials…is clear this debt, get rid of the stupidity, chop up the cards, and work your way through it,” Ramsey said. “Once you do that, you can get there.”

Dave Ramsey tells first-time home buyers, who have been “screwed by corporate America,” to focus on “clearing their debts” before looking to enter the real estate market.

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The supply vs. demand problem

While debt certainly plays a major factor in first-time home buyers’ ability to enter the market, it isn’t the only thing keeping them out. Ramsey also acknowledged the pricing crisis and supply-demand imbalance that is preventing homebuyers of all stripes from securing this aspect of the American dream.

“We’re still recovering from this huge spike in house prices following Covid,” he said. “We had the most unrealistic real estate market in 100 years following Covid.”

After lockdowns were lifted, people “bought houses like crazy,” taking advantage of the lower-than-normal prices caused by the pandemic. Eventually, this buying frenzy caused pieces to spike to their current highs.

“Now we’ve got a shortage of inventory,” Ramsey continued. “Supply-demand has not allowed those prices to come back down. We’re seeing these spikes in prices, and that’s pushed this age [group] out.”

There are glimmers of hope for those looking to buy a home in the next couple of years. Recently, TheStreet’s Laura Grace Tarpley covered two executive orders designed to improve home affordability. These orders, signed by President Donald Trump in mid-March, focus on increasing the number of homes built each year, and the second aims to help small banks extend mortgage loans.

Affordable home executive orders at a glance

Removing Regulatory Barriers To Affordable Home Construction: Directs federal agencies to review the number of regulations that slow down construction, trimming back on “overly burdensome” requirements when possible
Asks federal agencies to offer state and local governments incentives to speed up permitting process

The goal is to get more homes built, faster, but could create room for additional oversights and errors

Source: The White House
Promoting Access To Mortgage Credit Directs the Consumer Financial Protection Bureau to alter regulations so that more lenders can provide mortgages
Calls for streamlined regulations, alternative valuation models, and more digital tools to accelerate appraisal and purchasing timelines

Aims to make getting a mortgage, especially through small and local banks, easier, but could provide less accurate information on both home values and mortgage rates

Source: The White House