3. The Need for Housing
• Between 1932 and 1945, new housing starts = less than 100,000 per year.
• During the war, marriage rates started to climb.
• After the war, birth rates skyrocketed.
• In 1947, 3 million families had a need for homes.
The Role of the Government: Veterans Administration & FHA Loans
• VA loan program was created in 1947 for 16 million returning vets.
• Federal government backed $20 billion in VA & FHA loans.
• Federal loans led to 55% of households owning their own homes by 1950.
• This resulted in over 1.6 million housing starts/year by 1950.
The Type of Housing
• By 1955, 3/4 of all new houses were in subdivisions.
• Most building was done by only a few firms‐‐‐building new houses was BIG
BUSINESS!
• The Levitts were THE family of housing developments.
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