LA Couple Saves $90K Over Six Years, Dave Ramsey Says Homeownership There Is Impossible

Benzinga reported Tuesday that a Los Angeles couple has accumulated roughly $90,000 toward a home purchase over nearly six years. Personal finance host Dave Ramsey told them the numbers simply do not add up in their market.

A Six-Year Effort That Still Falls Short

The caller, identified as Natalie, appeared on “The Ramsey Show” to discuss her family’s savings journey. She and her husband live on his teacher’s salary while she manages a rental property. That arrangement eliminates their own housing costs entirely. After reviewing their finances, Ramsey calculated the household takes home around $80,000 a year. At that rate, they are saving approximately $20,000 annually.

Despite that discipline, Ramsey was direct. Los Angeles County ranks among the most expensive residential markets anywhere on earth, he said. He compared it directly to New York City, London and Tokyo.

What the Numbers Actually Mean

Ramsey framed the affordability problem in stark terms. A person earning $50,000 a year cannot realistically own property in Manhattan, he explained. He then placed Natalie’s household in a similar position relative to LA County prices. Their income, while respectable, may not support a mortgage alongside the rest of their financial life in that specific market.

Co-host Jade Warshaw acknowledged the couple’s savings progress as genuinely impressive. She suggested parking the funds in a high-yield savings account while the couple sharpens their plan. Warshaw noted that without a specific price target and location in mind, the goal remains too vague to execute.

Background: California’s Affordability Squeeze

The California housing market has ranked among the least affordable in the United States for years. Pandemic-era price appreciation pushed median home values in Los Angeles County well past $800,000. Rising mortgage rates since 2022 compressed purchasing power further, leaving moderate-income households priced out even after years of careful saving.

The Real Decision Ahead

Warshaw drew on her own family’s experience. Her sister-in-law taught in Los Angeles before relocating to North Carolina and then Florida, where homeownership became achievable on a teacher’s income. Ramsey stopped short of telling Natalie to leave but noted that income and housing costs must align somewhere. He pointed out that home prices typically decline as distance from a city center grows.

The couple acknowledged they had discussed leaving California but had not settled on a destination. Ramsey suggested that choosing a target city, state and price range was the necessary first step before any purchase plan could take shape. Without that clarity, he said, they are not really aiming at anything.

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