Study to Identify the Existence of Any Housing Credit Market Differentials Between Rural and Other Areas and to Identify Causes of Such Differentials. Volume 5. Springfield, Illinois Case Study

摘要

This study had two objectives: (1) to determine whether a real differential does exist in the housing and mortgage market between rural and urban areas of Springfield, Ill., and (2) if such a problem does exist, to identify the causes of the differential. It was part of a greater effort to examine these issues for four sites, including Harrisburg, Pa.; Mobile, Ala.; San Diego, Calif.; and Springfield, Ill. Initial portions present general information on the City of Springfield and the matched rural area. Included are descriptions of the geographical setting and history of Springfield, identification of economic activities, and a socioeconomic profile of its population as well as information on income, and employment and housing patterns. Another section presents major findings of the survey of consuming units. Consuming units are analyzed in terms of socioeconomic characteristics, income, employment patterns, and housing characteristics, as well as respondents' financial methods of purchasing their homes. Furthermore, major findings of the survey lending institutions are discussed. Overall, the study found that the Springfield area, while predominantly white, has a major minority black population, mostly residing in urban areas. Median family incomes in urban and rural areas are not appreciably different (less than $1,000 difference), and incomes for both areas are less on the average than that for the State as a whole. Expansion of employment in the 1966 - 67 period was approximately 2.5 percent annually for both areas, while urban wages grew at 7.4 percent and rural wages at 8.3 percent. Major differences between the areas are centered around the fact that Springfield is the State capital. Additional data were gathered in homeowner and mortgage credit market surveys. These revealed that rural houses were significantly older than urban houses. They had greater square footage and were placed on significantly larger lots; however, they were about $9,000 dollars cheaper on the average than urban homes. Rural homeowners obtained financing for houses from commercial banks; urban homeowners, from savings and loan associations. Further findings are summarized in the report's final section. One map and 67 tables are included. (Author abstract modified).