FROM CITIES TO SUBURBIA AND BACK (PART 1) RICK TOBIN
The most attractive feature of a home in Levittown
Suburbia’s Evolution: The 1950s
was the price which was just under $8,000. With
the introduction of FHA (Federal Housing Act) and
VA (Veteran’s Administration) mortgage loans,
many home buyers were able to purchase homes
with no money down. In addition, the home buyers
had monthly mortgage payments lower than what
they were paying in rent at the time.
The decade of the 1950s began with a desire by
many Americans to achieve the ideal lifestyle of
suburban home ownership with a white picket fence
and all. Many Americans were still saddened by the
devastation of fighting wars in the 1940s. The threat
of the possible Korean War also caused concerns
and stress in the 1950s. In addition, the fear of
The government backed and insured mortgage
loans from both FHA and VA which were the main
driving force behind the suburban housing boom
nuclear warfare caused many Americans to seek
peace and safety within the comforts of their new
suburban homes.
shortly after World War II. FHA and VA provided
approximately 11 million new home mortgages in
the years following the war. Simultaneously, a
41,000 mile interstate highway program helped
make the commute to the new suburban areas
more convenient. The new highways were funded
The increased availability of credit from banks, thrift
and loans, and other lenders helped suburbia grow in
the 1950s. The introduction of credit cards (or
“charge plates”) began in February of 1950 by a man
named Frank X.
by both federal and local subsidies.
McNamara. He ran a small New York loan company.
Housing gradually began to move from populated
cities like New York City to new suburban towns
like
Levittown.
Levittown
was
followed
Mr. McNamara came up with the novel idea of
offering a single credit card to many different people.
by
His credit card/charge plate was named “The Diners
communities such as Allentown (Pennsylvania),
Club” card. The card was later accepted at
and hundreds of suburban communities across the
nation.
American Express and Carte Blanche soon acquired
The new era of postwar prosperity set
in motion the “American Dream” of
home ownership. This new suburban
lifestyle, which was well entrenched
near
department stores, restaurants, and a few hotels.
many
large
areas
in
the
Northeastern United States in the
1940s, set in motion new lifestyles,
communities,
and
real
estate
opportunities up until even today.