Responsible Representqtion of Quolity Mills

NAHB Releqses Survey Results On Discriminotion In Housing

The National Association of Home Bu'ilders has announced the findings of a study in'to the probable ,impact of an Executive Order against racial discrimination in housing.

The study tabulated and analyzed by an independent economic and industrial research firm, reflects t'he belief of experienced builders throughout the country that the issuance of such an order would result 'in a sharp decline in the production of new homes'

A copl' of the report was forwarded to President Kennedy by NAHB President Leonard L. Frank in accordance with a resolution passed by the NAHB Board of Directors in December, 1961, directing that the study be made.

In transm,itting the report, Frank suggested to'the President that t'his may be the time for the White House to organize "a major, nationwide educational campaign to lessen misunderstanding and tension" over the problem of racial discrimination in housing.

"A nat,ional program could develop greater public awareness of the significance and coni"qu.tt..t of discrimination in housing; it could stimulate means of improving community acceptance of changing living patterns," Frank wrote.

Of the 6000 builders who responded to the survey, 42/o said they believe that the issuance of an order barring discrimination in FHA or VA housing would adversely afiect their building plans. If the order applies to conventionally financed homes as well, then 5l/o of the builders believe t,heir plans would be aclversely affected.

Generally, those anti,c'ipating a cut-back under an FHA-VA anti-discrimination order est,imated the drop in volume would be more than 50%. One third predicted a drop in volunre of more than 757o'

The study indicated that larger builders, as the mass producers of housing, were more appreheusive than were smaller builclers and custom builders, because their operations are less flexible.

The findings clearly indicate an opinion that the Executive Order would have considerable impact in virtually everl' section of the coun'try.

The survey questionnaires were tabulated and analyzed by C-E-I-R, one of the nation's most respected consulting firms in economic and industdal research processing. Although NAHB developed the basic questionnaire, C-E-I-R was given cornplete independence in tabulating and analyzing the results and in arriving at its own conclusions and interpretations of the results.

In making public the report, the NAHB stated that such a release does not mean complete agreement with the findings. With rele'ase of the report, NAHB supplemented some of the findings in instances where its experiences can clarify the answers.

For instance, the NAHB translated the C-E-I-R returns as sugges'ting the possible loss of at least 112,000 units of housing from the 347,000 planned by the survey respondents. NAHB saicl this, in turn would mean the potential loss of 250,000 man years of labor and a direct loss of $1% billion in Gross National Product. With the multiplier efiect (the re-spencl'ng of wages and earnirrgs in the economy), the total loss impac,t on the Gross National Product would be nearer $3 billion.

'fhis could be regarded as a minimum consequence. Ry projecting these figures to the anticipated production of 1,400,000 housing units in \962, they represent a possible loss,