Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-10-21
BUILDING PROSPECTS

0UlkUINO FnUSf Ell
unlsss something entirely out Of the ordinary occurs
TO prevent. the year 1920 is likely to be the greatest build
inS year this country has ever seen. Building for several
years has lassed. In many localities it has been at q
stand still. slussishness in building has been due to a
combination Of causes. The great war ~interfered with
other kinds Of activity. Every possible energy was turned
into the war channels. and the habits Of our people were
very largely revolutioaized for the time being. Tho rever-
sal Of conditions 10 not to he accomplished in a day. and
While the war has been over Tor nearly a year the country
has not yet resumed Its normal condition with reference
to its industries. Building prices have been high. This
fact alone has not been sufficient to deter many from
building, but the high prices combined with uncertainty
as to future conditions have made people doubtful and
suspicious The man who had in mind the building Of a
home which at existing rates might cost him $4,000 could
not tell whether or not by another year he could build the
same kind Of a building for $4,000 or perhaps $4,000, and
there were few who were willing to risk the loss which
would be certain to follow in material shrinkase in
prices. These and other conditions which were general
throughout the country have been intensified In North Da-
kota by our recently enacted tax laws A very large pro-
portion OF the residences built are built for rent. Those
that are not built for rent are built with a view to the pos
sion1ty OF their sale for renting purposes. That is always
an element tn the value OF a piece Of property. Our pres
ent tax laws operate to the disadvantage of the owner Of
rented property. On city property occupied as a home
by the owner there is an exemption Of 81, 900 in the as
sessment for taxation purposes. If the property is rented
there Is no exemption, 30 that the owner Of rented prop
erty pays taxes on $1,000 more Of value than he pays on
his home. The man who builds property to rent does SO
in the expectation Of getting a fair return on the money
which he has invested. His only source of revenue is the
rent received from his property. He must receive enough
rent to pay taxes, to keep the property in repair, and to
yield a reasonable return on the investment. If any ele-
naent OF cost Is increased he must advance his rent to
cover the increase and there has been doubt in the minds
Of many who would have otherwise built cottages for rent
a. to whether sufficient rent could be collected to warrant
the Investment being made.
All of these elements combined together with others
have tended to retard building, and in many cases have
1t entirely. Before another building season is
upon US the situation is likely to have reached a basis of
certainty. Building costs are high, and are
certain to remain high as compared with the cost Of five
some lines, but it Is quite certain that no very great re-
auctions may be expected. The bottom is not going to
drop out of the price Of lumber. the price Of hardware,
the price Of labor, or the price of anything that goes into
the building of a house. and any reductions which there
may be are quite certain to be moderate and gradual. Be
tore another year q good many Of our industries will have
themselves to peace conditions. and will be in
position to produce more largely for civil purposes than
hey have been doing Of late. The labor situation seems
% OK most complicated OF any, but there Is reason to
that by spring the situation will have become ad-
]usted in such a manner that there will be fewer Of the
Interruptions in the production because Of labor difficult
lies than we have experienced recently. The taxation sit
uation; will remain unchanged. and builders and renters
must adjust themselves to It. They will have made a con.
progress toward this adjustment before the win. 4
ter Is over.
The uncertainty, therefore, which has surrounded the
building business is likely to have been largely removed
before spring is upon ISL On the other hand We have to
the fact that while our population has been
growing our building operations have been almost stand
ng still. From every city in the land comes the cry for
more houses. The shortage of one year has been added
o the shortage Of the last. go that now we have an a-
shortage of approximately five years together
the certainty of increased demands for the coming
period. The demand has been piling up like water behind
he dam. and there must come a time when the dam car
10 longer stand the pressure placed upon it. when the
lam goes the deluge comes, and a de!uge Of building is
What we are likely to have to face next year.