Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1919-07-31
BUILD A HOME NOW. PRICES
OF MATERIAL ARE GOING
UP, NOT down

OF MATERIAL AXE GOING
~. UP, NOT DOWN.
The almost cessation of building
during the war had created an abnor-
NAL demand for construction which
was added to extensively and rapidly
by desire for expansion in all lines
Of business.
It was easy to see that the demand
for new buildings of practically every
class was SO great that it probably
could not be filled this year.
With this tremendous demand for
all classes of buildings from the most
modest cottage to the larger, modern
residence, confronting all parts of
the country, most builders decided the
prices were too high and must soon
come down. The result was, very few
building projects were undertaken. A
few men, however, believed the high
prices were here to stay and that if
any change in the price level were to
follow, that change would be upward
rather than downward. These few
men began to build. They will reap
rewards of their foresight because,
should they wish to rent, the houses
can be rented at prices that justify
the high cost of building.
The majority of the public has
continued to wait for drop in prices,
but the prices have, however, ad-
vanced slightly. A careful study and
observation of conditions which ap-
parently caused the high prices, is
causing a change of attitude of build
ers towards the high building prices.
The predominant opinion of the bust
ness world today is that there will be
no reduction in prices. Men are be-
ginning to see that the cause is very
largely one Of labor in producing
building material and in constructing
the buildings. No one looks for labor
to ask for less for it's services and
the best informed in the business
world believe that the present high
prices will remain for many years.
AS we stated in former article in
The Times, the delegates attending
the convention of the National Asso-
citation of Real Estate Boards the last
week in June, were unanimous in their
belief that building prices are not go;
ing down. However, the increased
rents make the percentage of return
on a house erected now just as the
percentage on pre-war houses when
both rents and costs were lower.
Asa Paul Murphy, director of the gov
ernment's Gown Your Home" move
nlent, says the country is 100000
houses short now and he predicts a,
housing famine the coming fall. A
report recently made by the Depart
ment of Labor says there is no likeli-
hood of a fall in prices. This report
brought out the fact that there was z
depletion in the stocks of all commo-
dities during the war and that, there
fore, the big armies of unemployed
which were predicted did not mater
ialize, but that there is almost
shortage of labor. These facts which
the departments report point out,
leave nothing upon which to base the
prediction that labor prices building
prices) will drop.
Missouri Valley needs houses and
more houses: The next census will
show this city to have 5000 or more
people if we can increase our hous-
ing so as to have the accommodation
for those who wish to come here to
live. So there seems to be but one
position to take with reference to
building, and that is, BUILD NOW.