Evening star., 1935-08-17
BUILDING TRENDS
TO CHEAPER HOME
More Costly Apartment Also
Characteristic This Year,
Study Reveals.

SeA~J ssS'S
Less costly one-family homes and
more costly apartments are character
istic Of this years residential building
as compared with last years, the
United States Building and Loan
League finds from its study Of De-
partment of Labor figures on building
permits issued.
The Home Building and Home Own
ing Committee of the league. through
its chairman, L. w. Pellet, Newburgh,
N. Y, finds in this trend the germ Of
more widespread home ownership, since
the new houses being built on less
costly lines are more within the reach
Of the average family for owner occu-
pancy than any new houses have been
since 1921.
Taking the homes for which permits
were issued from September. 1884,
through May. 1885, Mr.. Pellett shows
that the average one-family house
costs s205 less than did those built in
the like period of 1933-34. Similarly,
comparing the cost of new apartment
DulIOulhS pei 1dIlll4y OuI1lB bllC InO
periods, an increase of $152 per apart
ment is shown this year. The differ
ence in the cost of living in multi
family building and in a one-family
house is thus narrowing down and
initiating in favor Of home owner
ship.
So-called Jerry Builder"
Mr.. Pellet points out that the So
called Jerry builder" has not again
appeared on the scene after his
activities in the 1920s, SO that the
reduction in the cost for the average
new house does not imply cheaper
construction. but more economical
planning and undoubtedly less floor
space.
1T is distinctly encouraging to see
that with the upward trend of home
building this year has come real
ization of the true market for the one
family home. which no one seemed to
see in the boom period Of the 192os,"
says Mr.. Pellet. The small-income
family which buys home with the
aid of building and loan mortgage,
looking toward eventual freedom from
debt. forms the broadest market for
the Ore-family homes. We may ex-
pect expansion Of the present building
volume as long as the tendency to
build the less costly home continues.
Over the past eight months the
average cost of a new one-family
house has been $3.898, according to
Department Of Labor figures on per-
mits. Houses of this type are usually
built on lots which average about $500
in price on today's market. Since
man may safely pay from 2 to 212
times his annual income for his home,
If he has a period Of years to pay
for it on the monthly inStallment plan,
present building operations appear to
be aimed at the market represented
by the $500 to $4,000 year man.
The recent financial survey of Urban
Housing shows 12.4 per cent Of the
renters in this income group.
Building Revival Detour.
Herein lay one of the perilous de-
tours of the great building revival
from 1924 through 1928. We find
that the average cost of the new one
family homes built in those years
ranged from $4,317 in 1924 to $4,937
in 1928, and the lots cost about ST 800.
It takes man or family with at least
s2,50O a year income to pay for the
average type of one-family home they
were building in 1928. In 1929, ac-
cording to the recent financial survey
OF Urban Housing, the average yearly
income of tenant class was about
$500. Naturally the market for new
houses would have to come largely
from this group. Since the entire
preneurs in building did not choose to
design and execute houses which came
within their reach, they were led to
the buying of more expensive houses
than they could afford, and because
they were using the short-tern re-
Movable mortgage for such ventures
they made no attempt to pay OF the
debt. Here was the cause Of much
of our trouble dating from 1890.
Managers of savings, building and
loan associations feel that the new
revival in home building Is taking root
in sturdier ground. The tendency to-
ward the lower cost single family unit
has become more marked as the build
ing operations In this field expanded.
During the three spring months, the
number Of one-family homes built
was 21s times the number for the
three months previous. The average
cost of new houses was $500 during
March, April and May, as compared
with $3.50 during December, January
and February. With land prices at
bargain levels and a tendency for new
homes within the reach Of the average
purse and the average credit to domi.
nate the new residential picture, our
associations are ready to throw the
tremendous influence of their billion
dollar potential lending ability behind
this sensible home building revival"