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Shelter and Housing

war, building and prices

SHELTER AND HOUSING, a term which includes not only housebuilding it self, but the production of housebuilding materials, plumbing, ventilation, gas and electrical fittings, house decoration and sanitation. During and after the World War, however, it suddenly began to ac quire a social significance which hitherto had not been appreciated. Labor being diverted into war industries, housebuild ing practically ceased in all the civilized countries, including those not involved in the war, and rents leaped to such heights as had never been attained before, rising proportionately higher than the prices of any other necessities. The problem became still more acute after the war, when it became obvious that capital was not being invested in housing while the prices of land and building materials con tinued at exorbitant rates. Many plans for the promotion of housebuilding were proposed and put into practice. Among these were state subsidies, loans to build ing and loan associations, exemption from taxation, municipal and co-operative hous ing. The United States Government had been compelled to enter the field of house building during the war, through the United States Housing Corporation, and completed a large part of its program for the erection of 21,000 individual houses. The first state to take direct

hold of housing enterprises was Massa chusetts, whose Homestead Commission received a large appropriation for the purchase and building of homes. Okla homa also passed a law which authorized the investment of certain state funds in loans for building homes, and North Da kota, in 1919, created a State Housing Association, which acted as a building and loan association, on a state-wide basis and with the financial backing of the state. Relief from the situation was in sight at the end of 1920, when the inves tigations of the Lockwood Committee of New York demonstrated the fact that the manufacturers and dealers in housing materials had formed a national combine to hold up their prices, which were then 150 per cent higher than they had been before the war. Almost immediately af ter the beginning of the investigation prices began falling, and, though they soon rose again, by the end of the year there was a considerable renewal of activity in the housing industry.