Tadaima User Documentation
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  • Welcome
  • Tadaima Co-ownership
    • Myths of Homebuying
      • Example 1: 20% Down Payment
      • Example 2: Waiting for a Job
      • Example 3: Timing the Market
    • What Matters When Buying
    • When You Can't Buy -> Co-own
    • Sequential Co-ownership
      • Component 1: Equity Share Agreement
      • Component 2: Assumptions and Release of Obligations Form
      • Component 3: Performance Lien
      • Component 4: Assumable Mortgage
    • Benefits of Co-owning
    • Use Cases of Co-Owning
  • Financials of Co-Owning
    • Why is it Worth it?
    • Understanding Real Estate Investing
      • Equity Explained
      • Cashflow Sources and Sinks
      • Real Estate Investment Modeling
    • A Service for the High Mobile
      • Transformation 1: Ownership Structure
      • Transformation 2: Transaction Temporality
      • Remapping our Transformations
      • Tadaima Investment Modeling
    • The Equity Model for a Tadaima Home
  • Next Steps
    • Schedule 1:1 with Tadaima
    • Prepare Financial Documents
    • Shop Available Inventory
  • Appendix
    • Housing Market History
      • Prior 1920s
      • FDR's New Deal
      • Recent Efforts to Increase Homeownership
    • Real Estate Concepts
      • Counterparty Risk
      • Lien Priority
      • Mortgages & Liens
      • Title & Deed
      • Co-Borrower & Co-Signer
      • Appraisals
    • Other Myths
      • Wait Till Marriage
      • Possibility of 2008 Again
      • Renting is Cheaper
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  • The 1920s-1970s: Stabilization and Expansion of Homeownership
  • The Big Picture
  1. Appendix
  2. Housing Market History

FDR's New Deal

The 1920s-1970s: Stabilization and Expansion of Homeownership

The New Deal and the FHA (1930s-1940s)

  • In response to the Great Depression and the collapse of the housing market, President Franklin D. Roosevelt’s New Deal programs revolutionized homeownership.

  • The Federal Housing Administration (FHA), established in 1934, introduced the 30-year, fixed-rate mortgage, allowing middle-class Americans to buy homes with lower down payments and affordable monthly payments.

  • The Home Owners’ Loan Corporation (HOLC) helped refinance homes to prevent foreclosures.

  • The GI Bill (1944) provided returning World War II veterans with low-interest, no down payment loans, dramatically expanding suburban homeownership.

The Role of the Federal Reserve and Banking System Stabilization

  • The creation of the Federal Reserve in 1913 laid the groundwork for more stable banking practices and standardized lending.

  • The Glass-Steagall Act of 1933 separated commercial and investment banking, reducing risky speculation that had contributed to the 1929 stock market crash.

  • The Federal Deposit Insurance Corporation (FDIC) insured deposits, restoring public confidence in banks.

Post-War Suburban Boom (1950s-1960s)

  • Mass production techniques pioneered by developers like William Levitt (Levittown) made suburban housing affordable for millions.

  • Interstate highway construction and increased car ownership allowed families to move to the suburbs.

  • Racially discriminatory practices like redlining and restrictive covenants excluded minorities from these opportunities, contributing to racial wealth disparities that persist today.

The 1970s: Inflation and Housing Policy Shifts

  • Rising inflation and interest rates in the 1970s made borrowing more expensive.

  • The Community Reinvestment Act (1977) aimed to combat redlining and increase minority access to mortgages.


The Big Picture

The New Deal programs, banking system stabilization, and post-war policies transformed homeownership into the "American Dream," leading to a surge in suburban living and the homeownership rate reaching nearly 65% by 1970.

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Last updated 2 months ago