Evening star., 1940-01-06
Home Construction
Expected 10 Advance
And Rents 10 Go Up
Sovinss and Loan League
Head Sees Most Lending
For Houses Since 70

Americans will build and buy more
houses IN 1910 than they did In 1880
and those who continue to rent viii
pay more for their shelter. These
views Of the 1910 likelihood of real
estates continued uptrend are given
by George w. West, Atlanta, presi-
dent Of the United States Savings
and Loan League. Sustained abun-
dance Of home mortgage money with
little change In the cost Of such
capital Is foreseen by the savings
and loan leader as one Of the aiders
and abettors of the real estate
pickup.
Mr.. West bases his predictions on
two existing circumstances. One Is
the noteworthy business expansion
which has held its own for some
months and has, according to him,
built up q momentum for rolling
along throughout 1910. People will
thus have more money to buy homes
and more job confidence to push
them into the undertaking.
The other circumstance is the ap-
preaching end Of the long underside
Of the real estate and building cycle
which end Is the natural conse-
quence Of the 10 years spent in abb
sorbing the oversupplies and in
transferring properties which people
overbought to the eventual hands
Of those who could afford them.
Even without stepped-up business
activity the underside Of the real
estate cycle was spent, but with in
dustrial expansion the upside has
gotten = head start, he says.
Biggest Advances Since -.
Savings. building and loan asso-
Citations will finance more home
owners with probably . larger dol
lar volume of advances this coming
year than they have since 1922" said
Mr.. West. They viii make q larger
portion Of their loans for new con-
struction in 1910 than in any Of the
past 10 years. probably averaging
between IS and 40 per cent Of their
disbursements for brand-new homes,
A much larger percentage OF asso-
Citations are making construction
loans than at any time since the 20s.
Since there seems to be ground for
belief in q S to 10 per cent increase
In the volume of one and two fam
lily home building over 1899, saw
ings and loan associations are pre-
pairing to divert larger stream of
their funds In this direction.
Home buying will probably con-
tinue to use more than a third Of
the savings and loan financing in
the coming year. We expect greater
turnover In lots and homes than
any Of the 1930s saw. It will be
more nearly sellers market than
the present generation Of men in
their 20s will be able to remember,
Further substantial progress, in the
footsteps of 1899. will be made in
the transfer of older properties from
lending institutions hands to
private individuals. The bright out
look Of the market for existing
properties, however, Is confined to
those which are in good condition.
Unless imitation becomes an i'm.
mediate threat thsgs wiz be llttle
investment in real eState which Is
not readily usable or salaDIe =. '-9'7
Rents Due to Rise.
Rents which began a feeble climb
again this fall after Z year and Z
half of standstill seem to be set for
some upward movement, largely be-
cause we close this year with fewer
vacancies In places to, live than We
had last year. In communities
where this Is true landlords will be
able to collect more rent and the in
fiuence of those communities on the