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that disequilibria in market forces, created by new construc- <br />tion differentially unsuited to market demand, tend to magnify <br />the amplitude of both short and lone cyclical phenomena in the <br />construction industry. Although building cycles are rooted <br />firmly in variations of employment, income, demographic pheno- <br />mena, and psychological and sociological trends, cyclical <br />amplitudes may be lessened appreciably by the consistent <br />translation of differential demand into a qualitatively accep- <br />table supply. <br /> <br /> Since some of the families and unrelated individuals <br />included in gross household formation are unable to afford the <br />cost of newly constructed housing and the filtering process <br />.is not adequately supplying t~is part of the total need in <br />Santa Aha, various programs may be necessary to subsidy <br />assistance to housing production or assistance to families. <br />Until recent decades only an insignificant volume of new con- <br />struction was produced under subsidy, arrangements. Virtually <br />all of the incremental additions necessary for growth were <br />produced for sale or rent in the competitive 'market. Since <br />these increments can be produced only under prevailing costs <br />of land, labor, and materials, there is at all times a minimum <br />economic price or rent for new construction provided for the <br />competitive market. <br /> <br /> The <br />summarizes <br /> <br />0 <br /> <br />following statements regarding qualitative demand <br />the statistics presented throughout this report: <br /> <br />Approximately 750 dwelling units in Santa Aha <br />currently h~ve~a life ~ectancp of less than <br />10 years. <br /> <br />0 <br /> <br />0 <br /> <br />ApproximaTely 7,000 units are'overcrowded. Many <br />of these households have more than one family <br />living in the unit. To correct this overcrowded <br />situation would requir? relocation (either within <br />the City or adjacent communities) of these house- <br />holds into larger units, and/or encouraging the <br />split of households with more than two families <br />into two adequately sized units per. existing <br />household. <br /> <br />Assuming that rental conditions in' relation to <br />household income have not improved since 1970,. <br />there is a shortage of 2,398 rental, units in the <br />range of under $40 per month, approx- <br />imately 1,286 units in the range of <br />$40 to $59 per month, and a shortage <br />of approximately 480 units in the <br />range of $60 to $80 per month. <br /> <br />00'0088 <br /> <br /> <br />