The Washington times., 1937-11-29


message President RooSeuelt sen
Congress today on housing legtS
lntion.
To the Congress of the Unitec
States:
In my message to the Congress
upon the converting of the Ex-
traordinary Session on Novem-
Der Is, I said that 1 would
address you further in regard to
proposals to encourage the
private construction and financ-
ing Of housing on a large scale.
The proposals which I am pre-
senting for your consideration
now are an important part of
the program for increasing gen.
eral business activity and en-
ployment during the coming
year.
From the point Of view of
widespread and sustained eco
nomic recovery, housing consti.
tutes the largest and most
promising single field for private
enterprise.
BEHIND NEEDS
Housing construction has not
kept pace with either the needs
or growth Of our population.
From 1880 to 1887, inclusive, the
average annual number of new
dwelling units constructed in
the United States was 100, 900 as
contraSted with an annual aver
age Of 100000 in the seven
years prior to 1880. In addition,
much of our existing housing
has seriously deteriorated, or
has been demolished.
1t is estimated that an aver
age of 100000 to 300, 900 dwelling
units ought to be built annually
over the next five years to over.
come the accumulated shortage
and to meet the normal growth
in number of families. In other
words, we could build over the
next five years three or four
million housing units, which at
a moderate estimate of $4,000
per unit would mean spending
from IL to 16 billion dollars,
without creating a surplus Of
housing accommodations, and
consequently without impairing
the value Of existing housing
that is fit for decent human
occupancy.
LAG DRAGS ALL
The long-continued lag in
building is a drag on all indus
try and trade. This presents an
urgent problem which is the
common concern of industry,
labor, and government. All bust
ness needs the infusion of orders
and the diffusion of purchasing
power that come when building
is thriving. Great numbers Of
people look directly or indirectly
to the construction industry for
employment. This industry, to
a greater extent than any other,
can put idle funds to work and
thus speed up the circulation of
the nations money supply. This,
in turn, would increase national
income, reduce unemployment
and as a result contribute to-
wards a balancing of the budget.
Since 1888 we have had a
great recovery movement in
which housing construction has
played only a minor part. That
it should play a major part has
been clearly recognized by this
Administration from the outset.
But, though much has been
done to encourage construction
activity, the results have not
yet been satisfactory. Instead
of a seasonal rise in housing
construction through the past
spring and summer, there was
an early downturn. This was
one of the principal reasons why
general business failed to forge
ahead during the latter part of
the year.
HIGH COSTS A CURB -
We must recognize clearly
that housing will not be built if
costs are too high in relation to
the consumers income. The fact
that housing costs rose sharply
far too sharply-between Sep
TENDER of 1886 and March of
1887 was primarily responsible
for the downturn in housing and
thus in recovery generally this
year.
Revival of housing construc-
ton must be based on reduction
CT the costs of building and the
payment for buildings rather
than on a resumption of the
rising coSCS That stopped prog
reSs in this essential field last
spring and summer. Housing
must be produced at prices
rates, and rents that the mass
of our people can afford to pay.
The Government has made
provision, through assistance to
municipal housing, for many of
the most needy. But private
enterprise and private capital
must bear the burden of provid-
ing the great bulk of new hous.
ing. The measures I now sug.
gest are to encourage private
building to meet the needs Of
families of moderate means.
These T0ronoSalc ranYoof ha Of