New-York tribune., 1919-12-28
Greatest Construction Ac.
tivity in the History of
Country Expected To BE
Soon i'm Full Swim
Higher Rents Probable
Another Boost Likely Soon,
Owing to House and Busi-
ness Structure Shortage
By S. w. Straus
S. W. Struus G Co,

S. W. Struus G Co.
According to present indications the
coming year will witness the greatest
building activity this country has ever
known.
All fundamental conditions are right
tor a great building era In the prin-
clpal American cities we shall see
much construction of the larger types
OF residential buildings, such as apart
ment houses and hotels, as the short
age of servant labor and yarious other
conditions have created an unprcce-
dented demand for living accommoda-
tlons in buildings Of this description.
Never before has there been such a
demand for structures of all kinds as
exists at present. During the last year
'he population of all our cities has in
creased considerably, which, together
with tremendous business expansion
and the large building deficit which has
existed since 1917, has created very
heavy building requirements throurh
out the country.
Great Building Activity Looked To
Though the ensuing year will wit
ness great activity in the building in
dustry. this will not be commensurate
with the heavy demand. as the labor
situation has not vet become stabilized
ana production for some time will
necessarily be far below demand. Not
only is there a shortage of labor d-
rectly engaged in construction work,
but the stocks of building materials
are low
During the last twelve months the
total building and engineering opera
tions throughout the United States,
based upon contracts awarded, amount
cd to approximately s2,300,o0o,00O This
increase was approximately $3.50, ,00O,0 900
over 1918. The actual gain in construc-
tion work in 1919, however, was not as
extensive as these figures might indi-
cate. for it must be taken into consid-
Grafton that the costs of labor and ma
terials are much higher than they were
one year ago
During 1919 the heavy demand for
housing accommod dations of all kinds,
increases in costs of operations. taxes
great advances in rents. A typical
illusustration of this has been shown
in this city, where the average adj
vance during the last year has been
about 20 per cent and where the in
creases during the ensuing year are
expected to approximate the same fig
are. Similar advances are expected to
take place throughout the country
These increases have not only oc-
CURED in the case Of residential
properties and Office buildings but
there have been similar gains in the
prices paid for industrial and manu-
featuring space. In the great indus
trial district surrounding this city
manufacturing space which a year ago
) brought as to 30 cents square foot
is now commanding 55 to 60 cents, with
indications of similar increase dur
: ing the coming year.
Big Demand for Materials
According to some Of the leading
manufacturers of building materials in
the United States, the demand for their
products at the present time is much
greater than the supply. The labor
shortage has been the main cause Of
underproduction, according TO these in
terests. In the steel industry, for ex-
ample, the manufacturers have not
been producing as much as in normal
years. The output prior to the big
steel strike was about 85 per cent Of
normal, while at the present time it is
about 70 or rs per cent, according to
statements made in well informed cir
cles
uClC dIC WlNClN ulVcIStub OQlI-
ions as to the length Of time which
must eapse before production in build
ing materials reaches the level of de-
mand, but the prevailing belief among
leading manufacturers in this country
seems to be that after labor conditions
have become stabilized such an equali-
zation will occur within the next few
months.
In the manufacture Of most build
ing materials there are two groups of
employees directly concerned in pro-
at the present time there is tre-
mendous shortage of unskilled or
wheelbarrow labor. with the result that
wages for this group have advanced
since 1914 more than 150 per cent, so
some reports show. This advance to
unskilled labor has resulted in large
increases to skilled labor, for the rea-
son that this class of workmen has de-
nanded a proportonate increase to
that paid unskilled laborers. All these
advances to labor have played most
vital part in the increased cost of
materials.
Believe Wages Have Reached Peak
Some manufacturers believe that
the cost Of labor in most building lines
has reached its peak, and for this req
son there will be little or no further
increases in the cost of building ma
terials. On the other hand, many man
ufacturers state that the present up
ward trend in general costs will con
tinue as long as labor is scarce and
business good
at is interesting to note that dur
ing the last year the public more than
ever before has participated in the
financing of the nations building op-
erations. We are coming to thorough
realization of the fact that the general
investing public should be given an op-
portunlty to share in these operations.
This is opening up for the benefit of
the realty market vast reservoir Of
capital now employed in other indus
tries and it is giving the public an op-
portunlty to participate in the fruits
of the general development of our
American cities.