New-York tribune., 1922-05-21
Nothing Will BE accomplished
ByDeferring Building Too Long
Home Builders Cautioned Not to Expect Big Drop in
Material Prices for at Least Year; Costs Now on
Increase; Plan Now and Build When Ready

During the last few months there
has developed in and around New York
City volume Of residential construc-
ton which is probably greater than
ever before known Several factors
have combined to bring about this con-
d't1on, the most important being the
tax exemption ordinance under the
provisions Of which large volume of
new dwelling building has been started
Many home builders are anxious]v
awaiting the outcome of a proposed
test of the constitutonality of this act,
and some fear has been expressed that
it may be declared unconstitutional.
1t may be noted also that public opin-
ION in regard to this matter has been
somewhat affected by the recent re-
Voklng of the tax exemption laws in
New Jersey on a similar basis. We
feel safe in predicting, however, that
the tax exemption law and ordinances
in New York will be upheld. This
opinion has been obtained from leading
attorneys and real estate experts and
is based on the fact that the tax ex-
emption law Of New York State differs
materially from that in New Jersey in
that In New York State it was direct
emergency measure, with the police
power of the state behind it. 1t is evil
dent, therefore, that home builders
need have little fear that the benefits
OF the tax exemption measure will in
any way be impaired.
Building Cost Has Increased
1t is quite true that within the last
five weeks there has been an increase
in the cost Of certain basic materials
IN the New York area, such as lumber
and brick. Fear has been expressed
that this natural reaction to the large
volume of demand for building mate
rals will bring about a considerable
increase again in the cose of home
building. While it is true that manu-
facturers' stocks of some materials
are low, it is anticipated that this is
but temporary condition and that
other important factors are appearing
in the situation which will tend to keen
down the cost of home building and
possibly bring the cost slightly lower
within the next few months. A care
ful study Of actual construction cost
records on the various housing opera
tons now under way in the vicinity
OF New York shows no increase in cost.
1t is quite true, however, that in most
suburban sections labor is somewhat
difficult to obtain, owing to the large
number of operations now under way.
but as the exceptional volume Of con-
struction which has been started in
the early spring reaches the finishing
point in June and July it may be an
tlcipated that this condition will be
easier within the near future.
Another important factor affecting
the building of moderate cost dwellinps
is to be found by an analysis of the
present activity in the residential field.
A careful study of the construction
figures in and around New York shows
that large percentage of the volume
of building materials and labor en-
ployed in meeting the housing shortage
is being used for the construction Of
speculative multi-family dwellings. in
cluding large number Of apa rtment
houses in which it is proposed to rent
at from s12 to s25 per room per month.
1t is quite evident that as soon as the
point of saturaton is reached, when
sufficient number Of apartment build
ings Of this class is provided to meet
the local housing demand, large guam