Evening star., 1949-11-17
Nation Must Double
Housing Production,
Keyser|ing Declares
By Robert J. Lewis
Stor Stoff Correspondent

BOSTON, Nov. 1.-THE United
States must double it's current
production of housing to an aver
age of 1,750,O0o dwellings a veal
over the next 10 years if it il
to remain prosperous and keer
unemployment down, in the opin-
ion of Leon H. Keyserling. acting
chairman of President Truman's
Council of Economic Advisers.
Mr.. Keyserling told the closing
session of the National Associa-
ton of Housing Officials here last
night that of the average 1,750,-
600 housing units needed every
year. about 100000 should be in
public housing-an increase OF
more than 100000 units year
beyond the present public hous-
ing program. .....
By 1859, he said. residential
construction should reach an an
nual rate of about 100000 dwell
ings a year.
1925 Biggest Housing Year.
According to Government esti-
mates, the biggest housing year
on record was 1925, when about
e27,00 units were put under con-
struction. About 100000 units
were started last year and the
prospect is that approximately q
similar number or a few more,
will be started this year.
I'VE cannot achieve general
economic stability without much
greater stability of residential con-
struction than we have ever had
before" Mr.. Keyserling continued.
The economic adviser said thai
a goal of 100000 houses year
would be none too high to fulfill
housings share of the National
objective of maximum production,
maximum employment and rising
standards of living"
IF we are to average $780,
900 .O00, ,000-a-year economy oyer
the next decade, an annual invest
ment of Is to 20 billion dollars a
year-or $50 to 200 billion dollars
during the next 10 years-ln hous-
ing and related community de-
velopments should be our ooJec-
tive" he added.
Private Financing Urged.
Mr.. Keyserling explained he
felt that the "preponderant por-
ton" of the needed housing in
vestment should be by private en-
terprise. Expenditures OF Gov
ernment funds for this purpose
he said, should amount to only
minor fraction" of the total cost.
The former general counsel OF
the Nations top housing agency.
an acknowledged expert on Gov
ernment housing activity, said
that while current housing pro-
duction was large and commend
able" it was mot large enough
for existing economic and social
requirements.
At an earlier session, the asso-
ciation heard it's leaders advocate
fuller Federal and State support
of housing for "middle-income
families.
Miss Bauer Speaks.
Miss Catherine Bauer, vice
president of the National Housing
Conference and wife OF William
w. Wurster, chairman of the Ma
tional Capital Park and Planning
Commission, said the real estate
lobby's opposition" to public
housing had cooked up a whirl-
wind which will definitely reach
the middle-income housing field
in the future.
Miss Bauer said that in view OF
the public housing program ahead,
'it would be very unhealthy" for
the country to fail ito provide for
the middle Income family"
Herman T. Stichman, New York
State housing commissioner. said
he believed encouragement OF CO.
operatives would provide the solu-
ton for the middle-income family.
Costs Beyond Reach of Many.
James C. Downs, jr.. of Chicago,
q housing consultant, said that
experience of a Chicago organiza-
ton with which he is connected
indicated that the cost of build
ing houses on completely non
profit basis today is lin excess OF
what the middle-in family
can afford"
He said his organization had
found it cheaper to provide single
family houses than to provide
apartments including services
owing to the present high cost OF
services, such as grass-cuttlng
heating and other maintenance
He said he believed there would
be increasing pressure to have
public housing authorities reach
the middle income group"
Harold Robinson, director OF
the Massachusetts, State Housing
Board, said it was obvious" that
public funds or public credit
must be made available if hous-
ing is to be made available" te
families having incomes below
$4,000.
Connecticut Plan Explained.
Another speaker who until
about year ago was an executive
of the National Capital Housing
Authority, explained the Con
necticut Plan" of aiding middle
income families to gain home
ownership. He is Bernard Losh-
bough, now director of the Con-
necticut State Housing Authority
Under the Connecticut plan
he said, the State provides mort
gage loans at IL per cent in.
terest rate to families having gross
income of less than $4,000, plus