New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-10
By Harlow aL-ewis
OfsTstcker &sLe,e;s

Arc thsresto be any further reduc.
tions In thescost of building construc-
tion This Is question which is
naturally OF great interest to any one
WHO IS planning to build q house. It is
Impossible to answer it with a plain
rev or No" Conditions in the
building industry are still so unsettled
dangerous. Nevertheless, with, certain
definite limitations, qualified answer
mt least may be attempted.
Looked at over a period of wears.
there is probably little reason to doubt
that the present downward tendency in
building costs will continue, that is to
say, house which to-day can be built
for. $4,000 san bo duplicated probably
five years hence for less than that
amount Whether this would be true
II tha fve-year period were reduced to
one year, or even two years, MS another
question.
High prices In building construction
reached their peak about year after
the armfstice was signed; that is to
say, in the fall of 1919. During the
following year there was small and
very gradual reduction. Since the fall
pf 1920 there has been very sharp
reduction, amounting in some lines to
as much as SO Is per cent, a fair aver
age Of all classes Of building work be-
ing close to 30 Per cent. Probably thu
would amountsSto as much as 40 pers
cent.
Closes&o9rc-WarL Levels
Economists tell us chat thesvaluas Of
rehe 1921 dollar expressed In pre-war5
terms is 81 cents. If this Is the case,
and building costs are 40 per cent off
their high point, 1t would mean that
building construction has come down
approximately to pre-war prices, ex-
cept in SO far as 1t is governed by the
general economic conditions affecting
all lines of industry and caused by the ]
upheaval of the war. In other words,
while it is true that building to-day
costs perhaps 150 per cent more than
it did in 1914, this fact is not due to
any peculiar condition Of the building
trade, but to the general economic in
f1ation due to war expenditures which
has sent all other prices up to approx.
mately the same level. The cost of
building to-day compared with pre-war
levels is no higher than the cost Of
meat, eggs, potatoes or any other ar
ticle of common daily use, compared to
the same levels So much for, building
costs in general.
So, far as the particular factors which
affect building are concerned, there is
room for good deal of doubt that any
changes will occur during the, course of
the next two years which will ma
terially lower present costs. The first
big item which goes into the cost of
any building operation is labor. In
most parts Of the country material
cuts in the rates of union wages have
already been made,A these cuts ranging
from 10 to 20 per cent. While such
wage cuts have not yet gone into eff
feet in the metropolitan district, they
have been discounted by the greatly in
creased production of the Individual
workman. For example: Labor costs
per thousand brick have been reduced
40 or SO per cent, even with the same
rates of wages that prevailed "a year
ago. This simply means that brick
layer is laying o-day vice as many
brick as he laid a ear ago. TIE
same thing is true in a greater or les
ser degree with the labor cost per unit
of carpentry work. plastering, paint
ing, etc. Whether or not wages will
be actually curt in the building trades
in New York City remains to be seen. |