Evening star., 1932-12-10

needed, is Offered as the 11rSt polI
The committee finds that even in
some Of the largest cities absorption of
low cost homes has continued through
out the depression"
Educational Methods.
Educational methods directed at pres
ent-day renters to show the value OF
owning their own homes and the pos
sibility Of doing so at reasonable cost
Is the second point in the program.
The third proposal urges moderniZa-
ton expenditures by owners OF rented
houses, with view to selling such
properties to the families Of the low
income group, which cannot buy even
the inexpensive houses which can be
built new today.
This latter activity not only would
improve the appearance Of cities, but
also strengthen the tenor Of the resi-
Dental real estate market, which Is
affected by the existence of deprecated
property, the committee believes.
Census figures on the value of homes
now owner-occupied showed that it is
largely the well-to-do who own their
own dwellings" says Mr.. Leber. "Of
the total owner-occupied homes, 46.5
per cent are valued higher than $4,000.
Another 22,3 per cent Of the owner
occupants have homes worth between
$1,000 and $1,000.
Opinion among building and loan
executives is that person should not
pay more than twice his annual income
for his home. And the average income
Of an American gainful worker in 1880
was only $1,452. This means that
home ownership in this country scarce
ly can make any headway unless pro-
a.. 40 fay fa onnI,ira
homes worth less than $1,000. Only
21.6 per cent of the owner-occupants
live in houses of this price range.
Saving Is Considered.
"Studies made by the United States
Building and Loan League show how
money which now goes into rent over
a 1o-year period, the average time re-
quired to pay OF home-ownership
undertaking under the long-term,
monthly installment plan, would &C
cumulate at per cent to an amount
sufficient to own a home.
Rental payments of $40 a month
would result in an accumulation over
of $3,l63.31; rent Of $25 month
would amount to $3,954.20 In 10 years
at such q rate; $50 rent, to $4,74507;
SIS rent, $5,435.92; $40 rent, $6,326.75,
and $45 rent, $7,117.61.
'sThis gives us some idea Of how the
families now renting could acquire
homes. Census figures show that g.
1876, 700 families are now paying $50 to
$50 q month rent. Another $500 900
are now paying $40 to $50 month
rent. II they are to acquire their own
homes, they must buy or build them at
costs between 5000 and $4,000, accord
ing to the table given above.
Good, soundly constructed houses
can be built for less than $4,000 today
Just as some of them were built in 1925.
People will buy them, or build them, If
they are educated to the advantages OF
home ownership. Look at the record
Of Philadelphia. third largest city IN
homes. There is q prevailing favorit-
ism there for the owner-occupied dwell
ing. A comprehensive survey made in
that city shows that of the homes COM
pleted in 1881, rs per cent of those
costing less than $4,000 were absorbed
before the end of the year. OF those
costing between $4,000 and $4,000 only
SO per cent were absorbed by Decem-
ber 81, and in the next highest sales
range, only 4O.5 per cent were sold.
Subject Little Studied.
1--WE have talked about home owner
ship in this country for a long time,
without looking very deeply into the
matter. We need comprehensive plan
ming today. The stage Is completely
set for us to proceed.
with 5,50O,000 families paying
money for rent today in quantities
which would finance sound. home
ownership project, it Is up 10 the busi-
ness people who can change conditions,
real estate owners and builders, to see
to 1t that they have the homes to buy,
or that plans are provided and urged
upon them whereby they can build the
kind of homes that their desires and
their purses concur in. The lending
policies of the building and loan as
sociations, which take into considera-
ton all of the financial circumstances
Of the family wishing to borrow. are
guarantee that the home-oWnershlp
undertakings will not be upon an i'm
practical basis, Of letting man under
take more than he can pay"