the late 1940's have exerted considerable pressures upon our nation's educational facilities in recent years and it will soon give rise to a marked increase in the number of family formations taking place each year. Consequently, the demand for housing will reflect sharp sustainable increases, followed by a similar situation with respect to commercial, industrial, transportation, educational and recreational facilities. In the shorter term it is possible to be more specific regarding the features which influence construction spending. While homebuilding is currently going through an adjustment period, expenditures for new homes are expected to ride an accelerating trend in the decade ahead. In addition to population pressures for new housing units, other factors will play important roles in maintaining this growth. The rate of replacement of dwellings lost through demolition or conversion to other uses will gain in the years ahead as urban renewal projects gain momentum and space requirements for transportation facilities continue to mount. Second homes will become more prevalent as a greater share of the individual's time and money are devoted to leisure-oriented activities. Even without growth in the total number of housing units constructed, pressures for quality homes will have the effect of increasing the value of new construction. Construction of plants and factories will expand as increases in population and buying power create new demands for production capacity. Office space, also in the midst of an adjustment period, will regain its impetus from the growing proportion of white collar workers and the trend toward more office space per employee. -2-