Evening star., 1938-05-29
Plenty of Money for
Housing Purposes
BY FREDERIC J, HASKIN.

form a much-needed public service by
offering the American small home build
er a soundly constructed, well-planned
house of pleasing but not pretentious
design which may be financed on mod
crate income.
Moreover, a pressing need in the
United States for between 100000 and
100000 new dwellings-mostly of the
one-family types matched by some
$50 600, 600 900 in unemployed savings,
part Of which might be used to con-
struct them.
These are the outstanding conclusions
reached by the Federal Home Loan Bank
Board, which has completed an inten-
sive study of the Nations housing needs
and their relation to the architectural
profession.
A brisk improvement in the building
business as well as millions of days of
employment for artisans would result
from tapping the small homes market,
which, many believe, awaits only intelli-
gent development, based on cooperation
among architects, builders, mortgage
lenders and labor. The 100000 to
1000 900 homes now needed would cost
between $4,000 100000 and $4,000 900 900,
and, in addition, the expenditure of more
than $4,000, 100000 would be required to
repair and modernize some 100000 ex-
listing dwellings.
That housing is one of the major needs
and opportunities Of the present time is
conceded by all The need for repair
and modernization is currently increas-
ing because of depreciation and obso-
>F ~ I'll
structures are reconditioned, they will
continue to depreciate rapidly with losses
to the owners and to society as a whole
Adding the accumulated shortage of
dwelling units, it seems clear that within
the next 10 years the Nation must pro-
vide approximately 5000, 900 dwellings for
American families. That is the number
of dwelling units needed, measured by
potential demand. Financing this con-
struction program should prove no prob
lem in view Of the amount of money now
lying idle in banks and other savings in
stitutions.
In spite of financial stringency in manv
quarters, the supply of private savings in
the United States is steadily accumulat-
ing and there is on hand enough to pro-
vide for a major housing boom. At the
end Of 1887 there was approximately
$4,000, 900 900 in ascertainable savings
held by individuals in financial insti-
tutions, postal savings and United States
savings bonds.
Included in this total In the order of
their Importance, are savings represented
by life insurance policies $40 900 OOO, 900:
savings deposits in commercial banks,
$4,000 900, 900; in mutual savings banks,
$lO214 900 900; private accounts in saw
ings and loan associations, $500 000, 900:
postal savings certificates ST 27O 900 900.
and United States savings bonds, 1884,
100000.
1t seems apparent that America has
not only pressing need for a large
housing program. but also the money to
carry 1t out. This need was revealed in
the early days OF the depression, but for
sundry reasons full building program
has never gotten under way.
Each element essential in the produc-
tlon OF housing appears to stand of and
consider the other, waiting for a show
OF courage and initiative in which, bv
maneuvering, the others may gain some
advantage
1t is pointed out by many observers
that what the country needs most is a
cooperative alliance of labor, industry,
finance and the public-a cessation of
warfare against each other and a con.
centration OF their forces on productive
achievement. The futile antagonism of
productive units seems to arise out of
failure to recognize that they are essen
TALLY interdependent and that what
hurts one inevitably Injuries each of the
others. 1t is in the field of small home
building that the greatest opportunities
for concentration of forces now lies.
Most American families want single
detached houses. In 1886, 73 per cent
OF all non-farm dwelling units built were
slngle-family houses and of these, 64.5
per cent were in cities of $4,000 or less.
During 1887, of all the dwelling units
provided in cities of from $4,000 to
$4,000, 91.7 per cent were in one and two
family houses
Last year, more than 5000 small
homes were constructed as part of a
first national small homes demonstra-
ton, consisting Of homes costing from
three to five thousand dollars, including
the land. The second such demonstra-
ton work is being conducted this year
in more than 1000 American communi-
ties. These homes were initiated by the
lumber industry, in cooperation with
more than Is other industries manufac-
turing building materials and equipment.
During the past three years there have
been more dwelling units erected in
proportion to population in cities OF from
10000 to $4,000 than in any larger size
group, the percentage in 1887 being
approximately so per cent greater.
The latest authenticated figures on the
number of houses standing indicate that
even IN the largest cities those with
100000 or more population, one and two
family dwellings number 692 per cent
OF the total dwelling units. In cities of
25,000 to 100000 one and two family
dwelling units account for 871 per cent
OF the total. In non-farm communities
OF less than 25,000, 96.6 per cent live in
one and two family dwellings.
The majority of architects, contrary to
the rule in predepression days, are for
saking the field of multi-family dwellings
and concentrating on the one-family
home. Bad planning. repeuent designs
and shoddy construction, which in the
past set not few against home owner.
ship are being avoided Lack of oppor-
tunity for speculation is prime factor
in this trend. Architects are also en-
deavoring to raise the standard OF de-
mand and supply in housing for low in
come groups.
As contribution toward a movement
to end the evils OF poor construction, the