Evening star., 1944-07-15
Conditions Now Favor
Home Building Boom

conditions indicating greatly in
creased home building after the war
are being favored by the prolonga-
ton OF Government restrictions on
critical materials and the accelerated
accumulation Of savings on the part
OF prospective home owners.
These general conclusions can be
drawn from the report entitled Res
idential Building Potentials," pub
lished by the F. w. Dodge Corp
In this report Thomas S. Holden
president of the corporation and
well-known authority on construc-
ton trends, points to primary con-
ditions now existing and favorine
extensive home building when Gov
ernment restrictions are removed.
Conditions favoring increased
home ownership in the postwar
decade, according to Mr.. Holden
are: Cd anticipated prosperity, with
widespread purchasing power, size
able amounts of which are already
earmarked for home purchases or
down payments; CD favorable mort
gage market and purchase terms,
and 60 probable continuation of
population trends toward suburbs
and outlying areas.
Promotion Important.
An important element in stimu-
1aAng home construction is effect
i've home planning promotion by
well-managed savings institutions
among their depositors the study
reveals.
Some of the findings of Dodge's S
latest survey, supplementing it's
previous postwar construction stud
les, published last year, are as fol-
lows:
Accumulated demand for houses
Is relatively greatest in the cost
class banned by war restrictions,
that is for homes costing 5000 or
more with land. A larger proper
ton of houses in middle and upper
cost ranges would tend to increase
the number built from architects
plans and specifications.
The first postwar year will be
characterized by shortages of ma
terials and by the general confusion
of readjustment, possibly by hesita-
ton as to price trends Owing to
numerous transition problems it is
likely that in the first IL months
after restrictions on house building
are removed there will be built
only $4,000 to 100000 new nom
farm dwelling units, much below the
average annual construction of 800
900 dwelling units estimated for the
decade following the war.
1t can be reasonably estimated,
the Dodge report states, that two
thirds of new postwar dwelling units
built will be single family houses.
Single Units Favored.
1t is expected that the residential
building revival will start with
houses built on owners order for
owners occupancy, to be followed
by operative-builder projects of
houses for sale. After rent control
is relaxed or removed and postwar
construction costs relatively stabil-
lied than housing construction
curves will ascend.
anticipated hlgher national in
come" Mr.. Holden comments,
would mean a larger proportion of
total families in the United States
in middle -income brackets, COM
pared with the prewar era, which
was largely depression. Middle
income families are much less apt
to be deferred from home building
for income tax reasons than are
families in higher brackets. Many
have accumulated down payments
All of them can deduct property
taxes and mortgage interest in fig
uring net income subject to tax
Their investments in homes may
very well constitute an imitation
hedge"