Evening star., 1937-01-30
ORIGIN OF HOUSES
! SHOWS STABILITY
Dwellings Planned by 0Ccu'
. pant Likely to Remain
in His Possession.

At least 100000 Of the families ac-
curing newly built homes in America
In the past two years have more than
. $3.50 likelihood of sticking with
the home ownership project until the
mortgage debt Is paid of somewhere
between 8 and Is years from now.
This Is the conclusion drawn by the
Home Building and Home Owning
Committee Of the United States Build
ing and Loan League from the fact
that this number Of homes were built
by the future owner-occupant acting
upon his own initiative and therefore
represent . deeper-rooted desire for
home ownership than houses Of any
other origin. These owners will be
far less likely to put their homes up
for sale as prices and turnover ad-
vance
Figures from the F. w. Dodge Corp.
show that between $4,000 and 10000
homes in 1886 and approximately 40
600 in 1885 were built on the future
occupants initiative. They constitute
practically half of all one-family
homes built since the residential re-
vival started.
Surveys Of the lending records Of
savings, building and loan associations
which have played a s425 1000, 900
financing role in the home construc-
ton drama Of the past two years
indicate that there is about twice as
good a record Of carrying through on
the home ownership project when the
owner plans and builds for himself
than under other circumstances of
acquiring q home. Many Of the saw
1ngs and loan association records on
such habits 60 back so or so years.
The past two years have seen q
larger proportion Of residential build
ing in the former OF these owner-built
homes than will be characteristic Of
the rest Of the present construction
CYCLE" said the committee. For this
reason they may be looked upon as
the most important nucleus Of sta
bility in this new period Of expand-
ing home mortgage credit and home
construction.
"It Is inevitable that the developing
cycle Of building should bring the
housing development companies and
the small contractor builder Of homes
for sale or rent as more definite
influence in the total expansion Of
home building. They were more prom
tnent in 1896 than in 1885 because
of the decreasing margin between
rents and new building costs. Any
substantial further expansion Of home
building depends upon a continued
diminishing Of this margin and will
therefore tend more and more to en-
courage the building Of houses first
and the selling Of them later to their
future occupants.
1.-THE families which buy these
houses go into the enterprise as re-
suit Of salesmanship on the part Of the
builder or the real estate man as q
rule. It is often good salesmanship,
and it promotes home ownership in
countless places where the family
would never have the initial impulse
10 90 out and have q house planned
for itself. But as contrasted with
the home ownership transaction
which is prompted from the beginning
by the owner, it represents less def
nitely the strong and stable determi-
nation Of the family to own the home.
1.-The role Of keeping the family sold
upon its home ownership undertaking
remains in the hands of the financing
agency which provides the mortgage
money and Is In q position to en-
courage the family's carrying through
until the debt is paid Oh.
while an active and enthusiastic
real estate market is always q highly
important factor to the mortgage as
well as to the real estate broker, the
savings, building and loan association
particularly does not lose sight of the
fact that the home which transfers
owners many times in the course Of
. rising real estate cycle Is the one
which Is most likely to cause trouble
when activity begins to fall OF. Every
possible step should be taken, there
fore, to encourage true home owner
ship rather than speculative invest.
ment in home property"