Evening star., 1939-05-13
Home Owners Held
Having More Money
Left Over
Higher STANDARD Of
Housing Facilities
Also Claimed

Considering two families with the
same monetary income and me same
living Standards With one owning
its home and the other lenting. it
is quite likely that the owning FAM
lily will have more money left for
other purchases after it has paid
the operating expenses of its home
than Will the renting family after
the rent has been paid.
This was one Of the conclusions
drawn by an article in the May issue
of the Federal Home Lean Bank
Review, based on a survey Of Family
Incomes in Chicago, 1885, pre-
pared by the Department of Labor
in its urban consumer purchases
series
The difference between owning
home and renting a similar piece of
property in Chicago in those years
was estimated to average Sl24 a year
or almost SIG month. the Review
pointed out.
although this additional income
Is not in the form of money, it must
be added to the monetary income
of an owning family to provide a
comparable basis for studying CEN
sumner purchases by both owning and
renting families" the Review stated.
How great the income from owning
will be depends upon the living
standards of the individuals and
whether or not the home is mort
gagged. However, even the lowest
income group (under 81 ,000 added
$3.50 a year or $3.50 a month, to
their income by owning rather than
renting
Higher Standard for Owner.
A second interesting feature of
the survey which was studied by the
Review was that. at any given in
come level. it appears that an owner
Is provided with higher standard
OF housing facilities than is a renter.
Data supporting the survey of the
Labor Department on which the Re-
view based its study were obtained
from one family out of every 10 in
Chicago. Regarding this data, the
Review said:
In reviewing any statistical sur
vey, allowance must always be made
for the economic conditions which
prevailed at the time of the study.
Considering the fact that this sur
vey was undertaken during 1856,
1t is quite likely that were similar
study to be completed at the present
time the balance would swing farther
in the direction of home ownership
The index of housing rentals is
now considerably above the levels
of those years and would thereby
add to the rental value of owned
properties, and thus increase the
non-money income. Second. there
have been innumerable changes in
the home mortgage field with re-
gard to interest rates and the meth
ods of financing. These have had
the effect of reducing interest
charges and again the imputed in
come of mortgaged properties would
be increased
Low-Income Families.
These facts are significant:
Il. This report confirms the fact
that the greatest portion of our
families are in the earning levels
under $4,000 even in a metropolis
like Chicago
q. The greatest urge for home
ownership is found in the income
groups between $4,000 and $4,000.
although home ownership is most
prevalent among those with incomes
above $1,000
"3. Wage earners when provided
with sufficient income prove to be
the greatest home buyers.
a. Home ownership offers a FAM
lily in given income group a higher
standard of housing than can be af-
forded by renting families in the
same income bracket
IS. Home ownership returns an
economic addition to income suffi-
cient to increase the total family
earnings of the median family ap-
proximately 10 per cent"