Dave Ramsey was vocal two years ago about his prediction that housing prices would rise, a controversial thesis amid the Federal Reserve’s interest rate hike campaign.
His reasoning was simple: he emphasized the shortage of supply in the market by saying, “When there is a shortage of an item, prices rise.”
With about 16% of historic homes now affordable to average local earners, according to Redfin data, Ramsey warns against waiting for prices to fall.
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On a recent episode of “The Ramsey Show,” Ramsey said, “Prices are going to go up… I promise you, you can look this up in five years and you’ll think, ‘God, that old fart was right.’ again.'”
According to Bank of America Corp.’s 2023 Homebuyer Insights Report. 56% of Generation Z and Millennials who want to own a home plan to purchase a home within the next two years, highlighting strong demographic demand.
To count Blackstone Inc. (NYSE:BX) is among the institutional investors looking to capitalize on this trend. Blackstone recently announced the acquisition of AIR Communities for approximately $10 billion, marking the company’s largest purchase to date in the multifamily market.
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According to Reuters, Blackstone’s bet is based in part on the belief that a slowdown in construction will limit the supply of housing in America.
It continues the trend of Wall Street gobbling up rental units. Last year, MetLife Investment Management predicted that institutional investors could control 40% of American single-family homes by 2030.
For potential homebuyers worried about high interest rates and hoping they’ll go down before buying, Ramsey has another piece of advice: “Marry the house, pay attention to the interest rate.”
By purchasing, homeowners can build equity over time and benefit from potential price appreciation, rather than making ongoing rent payments to landlords like Blackstone.
However, there is some good news for renters in this market. Realtor.com recently reported that it is now cheaper to rent than buy a home in all of America’s 50 largest metropolitan areas.
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This article Dave Ramsey Doubles Down on Real Estate Commitment – Says ‘Prices Will Go Up’ as Blackstone Acquires $10 Billion More in Multifamily Properties originally appeared on Benzinga.com
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