The New York herald., 1921-05-23
HOME OWNING Is ON
INCREASE IN U. s. A.
Survey in Middle and Southern
States Shows Results of
Business Prosperity.

A research of the housing situation,
made about year ago by the National
Insurance Department Of the New York
Title and Mortgage Company. gave rise
to the following conclusions: That the
maximum housing shortage would not
be reached until 1923 in New York city
and that increasing construction would
not catch up with the foreseen demand
for houses until 1927. Regarding the
present phases of these particular con-
clusions. the department has issued the
following statement:
'.rhe present situation seems to indi-
cate that the forecast was accurate. The
shortage OF houses has not decreased
and legislative inquirers and private in
vestigators are OF one mind. Means
must be found to turn available capital
to building loans The situation is crit
ical. New York city has passed ordi-
rances exempting new buildings OF GER
tain types from munlcipal taxation, and
bills are pending in State Legislatures,
and in Congress as we'll, to exempt
mortgages from Federal taxes. State
leans are even suggested. In the mean
time, the public Is looking toward the
banks and other lending institutions to
finance construction work. 1t Is esti-
mated that 100000 homes in the
United States must be built within the
next five years to take care Of the nor
NAL demand for housing. Pressure is
being brought to bear upon financial
concerns, with view to persuading
them to increase their mortgage hold
ings.
Strong Faith I'm Building Loans.
THAT such loans are good business Is
the strong belief OF the counsel for the
Lockwood Committee. who says. I shall
be able to prove beyond contradiction
that over a long period of years this
class of security has proven the best.
the most stable, the most liquid, and
that it has yielded the highest income of
any Of the Investments of these institu-
tons LEGISLATORS naturally turn toward
the normal reservoirs Of capital since
private lending on mortgages has de-
creased because OF the greater attrac-
tiveness of tax exempt securities under
our present Income tax laws. The bur-
den falls upon the banks, and anything
that facilitates the banks lending money
with safety deserves carefM considera-
tion.
''One or inc prime COflSfueIdlioIls ia a
real estate loan is whether or not the
owner Of the property involved has a
good title. A lending institution has a-
ways, as a contingent liability, the pos
sible necessity of taking over and real
izing upon the collateral which secures
its loans. and whether that security is
real estate or bonds. it's marketabilfty is
of great moment Real estate with an
insured title has a reader sale than that
which has no such guarVitee.
''The National Title Insurance Depart
,nent of the New York Title and Mort
gage Company has made a. recent sur
vey to determine what demand now ex-
lists in tho South and West for real es-
tate title insurance. A survey was made
In the following States: Kansas. Mis-
souri,. Michigan. Iowa, South Carolina,
North Dakota, South Dakota, Tennessee
and Florida by means Of a QUESTIONABLE
sent to the leading newspapers In each
section and also to we'll informed indi-
viduals asking these questions az
What percentage Of people own their
own homes? (2) To what extent is
title insurance understood? 80 Are
property owners familiar With alb
stracts? (D Have there been many law
suits over titles? (5) Has money been
lost by faulty title?
Interesting and in many cases ex-
haustive replies have been received
from 90 per cent. OF the publications
thus addressed. These communications
may reasonably be considered to give q
fair indication OF conditions in these
localities. In going over the mass OF
data submitted one Of the first points Of
interest was the high percentage or
persons who own their own homes In
-. t.. ala aIy1t N mr.
ca lion of stability and prosperity. An
interesting indication Of this survey was
the prosperity evidenced in these sec
tions. 1t Is also significant that land
values have remained fairly steady
through the present period OF dc1a.ion.
In some localities an advance was found.
Another feature shown, especially In the
Middle West, was the breaking up of
land into small holdings. This has re-
suited in general demand for title In
surancc In these sections.
'useplies from Florida showed that
this winter resort and fruit growing
State Is enjoying marked rise In realty
values. With the Increasing number or
winter tourists and the remarkable ad-
vance made in the citrus fruit growing
there has been corresponding increase
In value for the better grade Of land
cause or the obscurity OF certain titles
have made title insurance an issue OF
Importance An Iowa newspa per takes
up conditions In that state. explaining
that Iowans are becoming more inter-
ested in title examination than for
merly, and says Since the title TO local
real estate carries with IL ownership of
all of the improvements placed there
on. title insurance should have "a spe-
cial appeal to any corporation or In
dividual contemplating the erection OF a
building representing any considerable
outlay. as n flaw In his title would
jeopardlze the whole Investment
The Grand Forks Herald OF North
Dakota gives the opinion that more
than so per cent OF the residents own
their own homes and have interest in
real estate. The Aberdeen and Amerl-
can Nctcs OF South Dakota says: Be-
tween individuals you might assume
that a contract would be contract, no
matter what happens. but they cannot
fects In titles in past years. As un-
dertahd It title Insurance covers every
thing like this
The Journal aud Tribune Of Knox
tille. Tenn. says. AS you are aware,
eastern Tennessee is n mountainous
section OF the State. Shortly after the
civil war thofs we're great many
Illegal Transfers of mountain property
and about fifteen or twenty years ago
great many people who had made
purchases Of this mountain land dis
covered that they did not have clear
title TO II. and some losses resulted.
Due to the presence of great volumes
OF zinc. copper. coal. iron ore and
marble In east Tennessee, practically
fra aa,t ar La hnnn