Professional Documents
Culture Documents
2. In-filling
3. Downgrading
4. Thinning Out
5. Renewal or
Rehabilitation and
Gentrification
Urbanization and the Housing Tenure Transformation
in the US
• Home ownership in US is
one of biggest influences
on the social and cultural
evolution of American
urban life.
• After WWII,
homeownership became
the dominant form of
tenure in the US (Thanks
to the GI bill) –
Homeownership rose from
20% in 1920s to 44% in
1940 to 60% in 1960 and
66% in 1980 and 68% in
2000
Why?
1. Increasing affluence of common
people, plus innovations allowed 3. Economic and Political
for economies of scale in building Significance-Downpayment to
activities (cookie cutter homes bank allowed pools of capital
versus custom built) for banks to lend for other uses
2. Recognition of homeownership – (industrial projects, other
social status, part of American mortgages, etc). Also consumer
Dream of individual property
rights; achieving residential consumption of furniture, lawn
segregation, which led to social care, and so on
and political strategies; allowed -Homeownership led to a
financial benefits through equity regulatory economic
gains. Encouraged social
mechanism (key element in
mobility on housing “ladder”;
able to fulfill familistic lifestyles Keynesian Economic
management). Interest rates on
mortgages used an a lever to
boost or slow the economy
Benefits of US Homeownership Continued
• Homeownership promoted 4. Sharp decline in the
social and political stability – profitability of Rental Units –
Idea that the more people have a Enforcement of rigorous
“stake” in private property building standards and
market the less likely they are to
threaten economic and political housing codes eliminated
stability. Helps eliminate the cheap rental units; slow rise of
“alienated tenant” psychology. income of tenants; rent control
“Locked into a mortgage!” legislation during WWII;
• Savings and Loans Institutions continued deterioration of
evolved to perpetuate this cycle. rental stock (Victorian
S&L Institutes gained special housing); taxation policies did
privileges in terms of corporate not encourage maintenance of
tax laws & taxation. rental properties; decrease in
• Could deduct the interest on demand for rental properties
mortgage from income and also
exemption of equity gains from
capital gains laws
Jane Jacobs – Urban Wisdom
• In Jane’s eyes, how should we begin to learn about cities?
• What do you think are the most important 20points of this documentary?