While the cities swell with new public housing projects and luxury apartment dwellings, and the real estate investment industry counts its profits, still another growth area is developing in the home building field.

Thanks to a nationwide demand for more simple, less expensive housing, three young industries have come to the attention of growth stock specialists: shell houses, prefabricated houses and mobile homes.

The shell home technique is opening up a broad and relatively untapped housing market. Increasing public acceptance of this concept has resulted in the industry enjoying an estimated 50 per cent sales expansion in 1960 versus a sharp decline in over-all U.S. housing starts.

As between a shell home and a prefab, the former appears preferable. A shell home costs about 25 to 33 per cent less than a prefabricated structure, and there's no outside labor for finishing the interior. The savings come primarily from do-it-yourself labor as well as from mass production of a more limited number of designs.

A typical three-bedroom shell home with 800 square feet can be bought for no money down and up to six years to pay. The "downpayment" consists of the property, which must be owned free and clear by the house buyer. Despite heavy financial charges, monthly payments generally are less than rents paid for substandard housing.

It is obvious that this type of house fulfills the need for low-income families, especially in the southeastern United States. Some 44 per cent of all U.S. families are estimated to have incomes below $4,000 a year.

Leading the shell home field is Jim Walter Corporation which accounts for over half of all shell homes built in the U.S. Its homes are offered in various sizes, ranging in price from $1,000 to $3,000.

Jim Walter has compiled an outstanding growth record. In the fiscal year ending August 31, 1960, it earned $3.5 million in selling 13,000 homes compared with only $393,000 on 3,015 units in 1956. That's about 800 per cent earnings growth in just four years or an annual growth rate of 200 per cent.

Especially promising is its credit financing business, with its time charges earned rocketing tenfold to $5 million between 1957 and 1960, while its gross profit on sales only tripled.

The outstanding growth of the shell home industry during the past five years has been accelerated by the new availability of financing for this type of house, since standard mortgage financing was not obtainable for incompleted housing. That's why some shell home producers make it an important end of their business to arrange credit financing for their customers.

The lucrative shell home market has lured many companies into the field. Most noteworthy is Certain-Teed, the second largest producer of asphalt roofing products, which has become the first fully integrated manufacturer of shell housing in this country—being able to offer raw materials, finished parts, financing, and semi or fully completed structures. Certain-Teed offers its "package" in these four stages: (1) the basic shell; (2) a shell with necessary material for completion; (3) a livable shell; and (4) a completed home.
 
Other large companies of building materials are eyeing the shell home field. Johns Manville is one of them. There is the possibility of an eventual merger between shell makers and building material producers.

And, then, of course, there are the ever-ready aluminum producers, who always look for putting more aluminum into everything. As a matter of fact, the nation already has its first aluminum shell home built in Florida by Major Realty Corporation in collaboration with Aluminum Company of America. Designed in a contemporary style and finished in an unlimited choice of colors, the model is priced at $2,950.

Prefabricated homes, too, represent a great departure from the conventional home in simplicity and economy. Developing slowly in its earlier years, the prefab home industry has experienced rapid growth in the last decade. In 1959 the industry accounted for 12 per cent of total single-family housing starts. And many believe this will be dwarfed by as much as a 75 per cent increase over the next fifteen to twenty years.

Leading the prefab field is National Homes which recently experienced a major reversal, allegedly caused by an oversupply of houses in certain areas. Critical of this allegation is Martin L. Bartling, Jr., president of the National Association of Home Builders. He contends, "Some say we have overbuilt. I say this is nonsense. Many of you have only to look at your own cities to see the need for urban renewal, for upgrading of older houses, and for decent housing for thousands of families who still don't have it."

Many experts agree that the recent decline in house starts represented only a temporary interrupting of a basically long-term upward trend. If the tremendous population increase should continue—and it probably will—residential building is expected to be one of the outstanding growth areas of our economy.

Particularly promising are the markets for senior citizens and young couples.

According to National Homes' board chairman James R. Price, one of the big housing needs today is properly designed shelter for elderly couples, or retired people, right in their home communities. Another is the need of younger and growing families for "optional use" space in their rooms.

In its 1962 senior citizen line, National Homes have five models, ranging from four rooms to six rooms, two baths and garage, the latter priced at $15,400, without land. Each dwelling is designed for the comfort and convenience of elderly buyers. Features include extra-wide doorways, skid-proof floors, raised electrical outlets, bath handrails and compact kitchen arrangements.

The growing popularity of mobile retirement homes is indicative of a strong trend toward attractive but simplified housing for the average senior citizen.

A leader in this field is Mobilife, the developer of retirement communities in Florida, Arizona and California. In conjunction with Chance Vought, it is selling senior citizens a specially designed mobile home.

The Mobilife home has the appearance of a conventional home and an interior designed for the convenience of retirees. Factory-constructed, it is sold on a lot in a retirement community as a package. It will be available only when purchased with the lot.

Mobilife communities offers the nation's retired citizens the possibility of country-club living at social security prices. After an average investment of $8,000, a Mobilife resident pays a monthly fee of $10 for utilities, maintenance, paved and lighted streets, garbage collection, and water supply, sewage disposal plant and central television antenna system.

At no extra cost, the residents of Mobilife's Sarasota, Florida, community have access to a 200-foot beach, clubhouse, auditorium, post-office substation, community newspaper and a barbecue area. Once a man has bought his home and lot, he can live on it on husband-and-wife social security income. Since lots are purchased instead of rented, they get better care, and thus appreciate in value.

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