Building the American Dream (ca. 1956)

112,566. Yep. That's how many there were of us in the armed forces between December 1941 and December 1946. And uh 15,738 of us came back alive. I guess uh I must have been number 38, last man out. Now, uh the reason for all of those statistics is because I can tell you what every one of those men had uppermost in his mind while he was away in his service. All 15 or 16 million of them, which is nearly a tenth of our entire population or almost a quarter of the nation if you figure a wife for every man. They were thinking of home, about the wives and the kids they left behind, or the girls they were going to marry and the children they'd have. And they were thinking about how they wanted to live and where. Not holed up in one room back at their family's place. Not cramped in a dingy little apartment. And certainly not in anything like a concert hut or any other kind of temporary housing, federal, state, or municipal. No sir, we wanted the real McCoy. A place of our own. Not just any old place, though, but a place of which every average man could proudly say, "This is my home." [Music] The trouble was though that back there in 46 and 47 for every million dreams and urgent need for housing only a thousand new homes were being built nationwide it was a a pretty critical problem and as an next year another on the way I'd have been smack right in the middle of that problem except for a very fortunate circumstance this particular gentleman happens to be my father. And uh ever since about 1930, he's been a builder of very fine homes. Well, uh the rest of this island, that's something I'm mighty proud of. Oh, there's dad now. Come on in and meet the senior partner. [Music] You see, when I got my degree in 48, Dad invited me into his business, and we became David Hannah and Son Incorporated. But while I was able to shoulder some of dad's load and help him with the strategy of practical construction, we the same as a lot of other builders were having to hurdle some very big obstacles. You see, even in 48, the construction of new homes was beginning to increase at such a rate that the economists and financers had to rub their eyes to be sure they could believe what they were seeing. But because most of the building was being done by relatively small firms like ours, there was a feeling in certain places and among certain people that this was just a flash in the pan business. Somehow they had it figured that popular demand for our type of new home was only a temporary fad. That feeling was expressed by an old friend of the family, a man I've known since I was a kid, and through whom, frankly, Dad and I hope to obtain a much needed loan. Hello, I'm Alan Hannah. I have an appointment with Mr. Bracket. How are you, young fella? Fine, fine. Sit down. Thank you. What have you got on your mind? And it's about this housing development dad and I are going into housing development. I thought you had studied engineering. Oh, I did, sir. But I'm using my engineering training as a means of helping dad expand his business. Your dad's always done all right, young fella. What are you trying to turn him into? A speculative builder? Well, there's always a certain amount of speculation in every venture. But in reality, Mr. Bracket, we're merchant builders. In my opinion, the more houses you try to produce, the worse they're going to be. Why do you say that, sir? Well, take my own house, built 30 years ago, solid as a rock. It took time. Minimum construction standards are much higher than they ever were in the past. And when those high standards are combined with all the new materials and building techniques which have been developed in recent years, you'll find that the average home being built today far exceeds in dollar for-dollar value the house you had customuilt for yourself 30 years ago. Maybe so, but my argument still stands that the very nature of home building compels it to use old-fashioned methods because every house has to be built as an individual item. Have you had an opportunity to go out and see the methods we actually do employ? Not just dad and myself, but both large and small operations which are indicative of how this industry is really developing. Industry? How can you regard it as an industry when it's scattered all over the map working on a peacemeal basis? Well, that's an inescapable requirement of our business. We have to build where the land is. And that, Mr. Brackett, is what I came to talk to you about. Now, we've optioned some property, but according to It took a bit of doing, but Allan finally persuaded our friend Bracket to take a look at some typical home building operations. Dad and I uh drove him around to various jobs on the construction, and it certainly was interesting to watch his gradual change of attitude. Slowly but surely, he came to realize that what the casual observer seemed to be just a lot of confused activity is actually a well-ordered systematic series of manufacturing steps, efficiently coordinated as any other major modern industry. So, with the help of Mr. bracket and his bank. The firm of David Hannah and Son incororated got launched on its first goodsized venture. The ability to erect the well-built, attractively designed popularric house is only next to the last phase of the whole operation. Like an iceberg, there's a lot more beneath the surface never appears on top. Fortunately, as we grew, our home builder associations helped us upgrade our understanding of those more important phases of business. And as we learned and as we grew, all of us, large and small builders alike, whose only relationship was through our voluntary association, became aware of a very important fact. Because of the accomplishments of the building industry, the entire face of the nation is being changed for the better, even to the extent of creating totally new towns. It's a familiar sight today to see such communities erected on what once were just wide open spaces. And all of this has been accomplished by the initiative of independent homebuilders who had the courage to venture into such projects. Now there are shopping centers, well-paved streets, parks, play areas, and sports facilities. [Music] such new communities. Many smaller companies using the same modern methods as the big fellows have produced a major portion of the annual average of more than 1 million new homes during every year since 1948. [Music] Quite a difference from 1945 when less than 200,000 single unit dwellings were built. But even though some 15 to 20 million families have been able to find and buy exactly the kind of new house they wanted during these recent years, much of the public still doesn't realize the benefits that the homebuilding industry brings to their own community. A good example is what happened to me a while back when I was asked to address a PTA meeting at a high school in an area where we were proposing to put up a large number of homes. Ladies and gentlemen, many of us are inclined to lose sight over what good homes we are able to build and buy in this country and what we mean when we say a home is an excellent investment. I gave your school projectionist some slides which I would like to use to illustrate my remarks. Uh, may we have them now, please? To begin with, I want you to see what the average and even better than average living conditions are like in modern Europe. This is a post-war English home built in 1950. The average English worker must put in about 25,000 work hours to buy this place. And a house consists only of a small living room, small dining room, and completely unequipped kitchen. Two fairsized and one very small bedroom. One bath with tub only and a onecar garage. Here's the average new home being built in France today. If you're lucky enough to be able to buy it, because application lists are so long that people have to wait years for even an apartment. This house will cost its French owner the equivalent of at least 32,000 work hours. or his entire wages for 13 and a half years. [Music] In West Germany, where there has been the greatest building activity in all of Europe since 1946, the average price of a new house is equal to the total wages received by a typical German worker after he has put in about 28,000 work hours. Compare what what you have just seen with a typical American home which is available to our average worker at a cost equal to his earnings from about 6,000 work hours. To begin with, there is such a wide variety of architectural styles and floor plans that the buyer can usually find exactly what suits him best in the location where he wants to live. Whether one level, split level, or twotory, this home will consist of a goodsiz living room, possibly with a wall of sliding glass doors opening upon a patio. There may be a dining area in conjunction with the living room, or a separate dining room or a family room in conjunction with the kitchen. The kitchen itself will have been functionally designed as a homemaker center. [Music] Three bedrooms will be served by one and a half or two bathrooms with tile work and plumbing fixtures that would have made the Roman emperors green with envy. There will be closet, cupboard and storage room galore and so on down through innumerable items, every one of which contributes to the enduring quality of the owner's investment. You know, because of the great strides that have been made by our industry, an important change has taken place in American life that a lot of folks aren't even aware of. Uh, may we have the next set of slides, please? I guess that even before man became civilized, he used his personal property as a means of showing his status in society. And the more civilized we become, the more people have been inclined to put their money where they thought it would show them off to best advantage. That, according to the economists and psychologists, is the reason why the American automobile industry grew to be so big and successful. Even though 30 to 40 years ago, people didn't need cars as they do today, the American public developed a national habit of buying new models as fast as the styles changed, in spite of the fact that their old cars still have plenty of life in them. Now, what does it cost to do this? Well, if a man bought his first car at a cash price of $3,000 and continued to trade it in every other year for a new one at the same price, allowing for an average depreciation of $1,000 per year and a trade-in value of $1,000 per car. [Music] In 20 years time, he would have invested a total of $23,000 in new car purchases. Bear in mind that that figure doesn't include interest or carrying charges or operating and maintenance costs. If after all that, because of financial or some other reason, he can no longer afford to run a car, he will probably realize $1,000 in the sale of it, which means that in 20 years, and after a total expenditure of at least $23,000, he has nothing to show for his money but what he made on the used car. Naturally, practically all of us, and especially we homeowners, need an automobile. But just compare the case history of that man and his car with another man and his purchase of a home upon which a down payment of $3,000 was made and applied to a 20-year mortgage. At the end of that time, the owner not only holds full title to his property, but the property itself has very likely appreciated considerably in value. Well, I guess I haven't been very subtle in stating my case, but the fact of the matter is that as a homebuilder, I'm proud of what we're doing. And when I say we, I'm not referring to just the relatively small company of David Hanner's son, but I'm referring to the American home building industry as a whole. Thank you very much. Don't be in such a hurry to get away, Mr. Hannah. First, let me thank you for a very interesting presentation. Thank you. While you were speaking, somebody in the audience sent a little note up to me suggesting that I ask you a specific question. But I think it best if that gentleman put the question to you himself. Would you please? What's the potential of job opportunities for young men who might want to get into the home building industry? In every one of the building trades, there is a continuing need for manpower so that the right young man is bound to find employment. But even more important than that though is the research progress being made in materials equipment and construction methods. And with the interest in panelized and component type construction, the requirement for chemists, structural engineers, industrial designers in the building field is greater than ever. Does the industry have opportunities for careers in business administration or other professional capacities? You bet it has. The industry must have trained manpower in fields of uh banking, engineering, architecture, market analysis, advertising, sales development, accounting, public relations and business management just to mention a few. Additionally, now there are many professions and services directly related to housing which need specialists. for example uh landscape gardening, municipal planning, interior decoration, survey and so on. And then of course there are the building materials manufacturers and suppliers such as retail lumber dealers who also need manpower to keep up with the pace of the industry. I'd like to offer this as a suggestion if I may. That's the first public speech I ever made in my life. And I remember it now just as vividly as when it happened. It's a curious fact, but very few people have even the slightest idea of all that it takes to build a house. I think that one of the most impressive things I ever heard about the homebuilding industry was at a Chamber of Commerce meeting Allan and I attended not so long ago. The eminent economist Robert Stevens was a guest speaker. Mr. Chairman and gentlemen, a dynamic catalyst is at work in our country. A catalyst of such power and magnitude that its force will continue to stimulate our national economy for future years. far beyond my ability to forecast. Now, what is that catalyst? Well, let me show you a brief motion picture that as an eye openener is as astounding as anything that science fiction could ever dream of. Would you hit that switch for me, please? [Music] Aon an open field quite similar to any upon which our early pioneers first settled, there's a vast prairie some 30 m beyond the center of a thriving town. Here, enterprising builders in anticipation of the construction of certain new industrial plants in an adjoining area have bought land for the purpose of erecting homes for the coming influx of personnel. So the survey is made, the lots marked out, the proposed streets lined off, and from that moment on, like dropping a pebble into a pond and watching the ripples radiate, men and machines, raw materials and supplies, salesmen, distributors, transportation, and a multiplicity of other things and other people as far as thousands of miles away will be motivated by its effect. So widespread is the influence of this dynamic catalyst and so oft repeated is its stimul impulse that what occurs can be best comprehended by concentrating on the building of just one home and its ultimate possession by one family. For what takes place in order to create this single incident is identical to that which happens whenever and wherever a new home is built. Multiply then this one event by the similar thousands that are manifesting themselves every day of every year throughout America. From our well-conserved forests comes the timber for framing lumber, flooring, siding, cabinets, and other mill work. and wide. Various kinds of rock are mined for processing into gravel, cement, facing stone, and such highly specialized gypsum products as plaster, lav, wallboard, roof deck, and partition tile. [Music] From other mines come copper, lead, iron, nickel, and oxide ores to be smelted, mil and then fabricated into the innumerable metal products needed in home building. From aluminum for thermal barriers and tungsten for light bulbs to steel, iron, copper and brass for nails, girders, conduit, plumbing, wiring, hardware and fixtures and molten slag for the production of mineral wool insulation, paint factories, wallpaper plants, glass works for windows, kils for the making of ceramic tile, brick masonry, clay drainage pipes, vinyl plastic, cork, lenolium, and wood parketry for finished flooring. All of this production, plus even more, is needed to supply only the basic structural materials for just one house. And so that the completed home can function according to up tothe-minute American standards of living. It must also possess durably beautiful plumbing fixtures in the bathrooms, the utility room, and the kitchen. Heating and air conditioning and hot water equipment whose intricate mechanism of electrical parts and thermostats make them fully automatic and trouble-free. and the washer, dryer, refrigerator and freezer, oven and range, the electric dishwasher and waste disposer. Even possibly a radiocontrolled garage door opener. All these conveniences, the results of vast, unending industrial research, design and production, which a generation ago might have been almost unattainable luxuries, are now so common place that they're considered absolute necessities by the most modest of modern American homemakers. And so this house nearly ready for occupancy by its first proud owners is the achievement not only of its builder, its architect, its contractors and its skilled craftsmen in many specialized trades. It is also the achievement of a great composite of many and varied industries and their marketing channels through wholesalers, distributors and dealers. Today, even one house is rarely isolated. And because that which we have built shall have its neighbors, the road builders have been at work improving highways into the area, constructing streets for the community. And the utilities have been put in power, water, light, gas, and the telephone. Each involving thousands of people in the production, construction, and maintenance of facilities and service. Now our family, one of the many whose individual desires have been fulfilled, take possession of their fine new home. What will they need immediately, regularly, in the very near future, or as time goes on, which will keep the wheels of business and industry continually turning? It's impossible to list but a few. to furnish the home. Floor coverings, draperies, furniture, accessories, bed linens and towels, thumbtacks and cup hangers and similar gadgets, cutlery, pots and pans, glassware and china, toasters, ironers, mixers and blenders, gardening tools, seeds, shrubs, plant food, a thousand1 things every family has to eat. And so it helps support the farmers, the ranchers, the dairymen, the food processors, [Music] the butcher, the baker, the produce dealers. [Music] Because the family want to be entertained, they have a TV set, a radio, a photograph. They go to the movies, to restaurants, to nightclubs. And all these goods and services must employ people to supply the family's needs. Drug and proprietary stores, wearing apparel dealers, other retail establishments. Each exists and prospers only by serving the family. And the goods which they sell are the product of millions of people in thousands of large and small factories which manufacture everything from paper napkins to vitamin pills. [Music] The family's automobile, which they will probably trade in for a new one next year, not only helps keep the automobile industry thriving, but continually supports the gasoline station, the service garage, the tire dealer, all of whom must draw upon manufacturers and suppliers of fuel and accessories. And of course, this one family, like all its neighbors, pay their taxes to maintain schools, museums, recreation areas, roads, and every other function of local, state, and national government. So it is that what just one average family in one average home requires in goods and services multiplied by the total of homedwelling families in the nation is the incentive force which powers the United States of America as the country possessing the highest standard of living in the world with all the wealth of our national resources. If it were not for the quality of our individual homes and the abundant commerce needed to fulfill the high standards of those home owners, the face of our nation and our economy would be comparable to darkest Africa. For there in Africa, rich though the land is, the mud and wle houses contribute nothing but primitive shelter. In the eyes of the rest of the world, modern American housing is the epitome of convenience and comfort, even of luxury. It's something that is envied by people everywhere, no matter what their wealth or social standing might be. Just outside Rome, there's a handsome palace. Here one may find a Contessa of great nobility whose diamonds, emeralds, and masterpieces of art are so precious they are beyond value. Yet this Contessa would indeed be happy if she could have only one of the many conveniences of even the most modest American house, central heating. In England, a certain puke owns an estate which is so vast that it includes several villages. Within the castle, there are more than 100 sumptuously furnished rooms. Yet, his lordship would be delighted if he had but one bathroom so equipped that when he turned on the tap, he would get an instant flow of piping hot water. [Music] In Russia, though the present- day aristocracy is chosen from scientists, engineers, and skilled professionals, many of them must live one family per room in governmentbuilt apartments. During an American exposition in Moscow, hundreds of thousands of citizens from all over the USSR visited a model American home. They could hardly believe what they saw. For to them, this house, which was representative of those owned by millions of average American factory workers, far surpassed in true value the residences of the important Russian commissards. [Music] No matter how enormous the industrial capacity of a nation may be, from its harnessing of hydroelectric power, its steel production, its number of machine tools, the size of its labor forces on into the skill of its scientific research. Only if the greatest part of this industrial output is in consumer goods designed for, priced for, and made available to all the people of every community. Does it contribute anything to a higher standard [Music] The realization of the American dream, the envy of the entire world. [Music]