The lack of new construction was combined with a massive influx of veterans returning to civilian life. Residential development had been concentrated in areas surrounding defense-related plants and factories. With the real estate industry dedicating all attention to wartime efforts, there had been very little private development activity. There were some substantial hurdles to clear. The federal government was aware of the situation, and passed the Housing Act of 1949, which, in part stated as its goal, '.a decent home and suitable living environment for every American family.' The housing shortage By the end of the war in the mid-1940s, it was clear that there was a severe shortage of housing. Nearly two-thirds of all industrial construction during the 1950s was taking place outside cities residential construction in the suburbs accounted for an astonishing 75% of total construction. In a trend that has continued to this day, cities were increasingly losing population to the more open, cleaner rings of land just outside the city.Дuring the 1950s, land values in the suburbs increased rapidly - in some prime suburban neighborhoods as much as 3,000% - while population swelled by 45%. Widespread car ownership and the increased development of the freeway system, intensified by the Federal Highway Act of 1956, catalyzed the move. After many years urban growth spilled over into the suburbs. Following World War II, the inner cities were busting at the seams. As cities expanded, high land prices and crowds persuaded people and commerce alike to search for cheaper and more accommodating real estate alternatives.

The other conspicuous real estate story of this decade was housing, or, more accurately, the absence of housing and the real estate industry's slow response to the shortage.ДЇirst mass exodus to the 'burbs Decades earlier, America made the transition from a rural based society to one based in urban areas. One was the movement of much of the population to newly formed suburbs fed by the expanding network of thruways - suburbanization. The years following the War saw two pronounced trends. The black-and-white decade of the 1950s - the 'gee-whiz' decade - put in this context was certainly understandable.Д®ntering 1950, real estate markets in general - retail, office, industrial and hotel - were all entering a period of sustained growth kindled by the pent-up demand and the surging economy. Average Americans, with the horrors of war behind them, were enjoying unparalleled economic security.ДЇollowing the surreal images of World War II, the country desperately desired a return to safety and living the American dream - get a job, buy a house, marry and raise a family. The GNP before the war in 1940 was just over $100 billion by 1955 it had tripled to $310 billion. The national economy prospered as a result. Developments in industry, aviation, medicine, electronics and atomic energy were accelerated what would have taken years to evolve took months during the war. The most deadly and widespread war in modern history acted as a devilish bellows on the fire of the American economy.

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