New-York tribune., 1922-09-24
Building Cost
IasMOyedlJp
20 Per Cent
Statistics Show 2O-Point
Increase Since March;
Labor Morale of the
Country Is Now on
the Downward Grade

The cost of home building and con-
struction generally is on the increase.
Since last March there has been
steady rise in the price of materials
Snd the service OF labor. The morale
Of the building craft also is not so
high as it was several months ago,
with resultant lowering of efficiency,
which must be reckoned in the cost of
building. 1t is estimated that the
home builder or the Office or CONNER
eial structure builder will have to pay
% per cent more now than he would
have paid previous to March. Where
agreements are in force with building
Unions the cost will be less. But the
tendency is toward higher prices, ac-
cording to q survey made by Monks &
Johnson, architects and engineers
Their investigation shows that the pri-
mary reason for this increase is the
demand brought about by the large
volume of building which always ac-
companies an upward swing in the
business cycle.
A secondary cause for this increase
in the material cost is the coal strike
The cost of brick and steel, and in fact
ent upon coal in manufacturing, has
been raised considerably over the fig
ures that would have obtained il the
coal miners had been at work since last
April.
with the great increase in building
auring the last six months" say
Monks e. Johnson, "wages in the build
ing trades have stiffened where not
fixed by definite agreement with the
hnr
observed number of new schedules
have been made, or are pending, which
Will raise the current hourly rates.
The efficiency of building trades
Tabor improved in the estimation of
some authorities 100 per cent between
the spring of 1920 and last winter. In
the face of the very large demand for
building trades labor which now exists
certain slackening in morale is sure
to result, and lessening of efficiency
may we'll be expected.
1T can be clearly seen therefore that
the first two elements of construction
costs are increasing, and the third ele-
ment, that of efficiency, is not going
to tend to lower costs for the present
"The general public has schooed it.
self during the last two years to go
without great many necessities in
anticipation of lower prices to come
This so-called buyers strike has in
culcated a general attitude of thrift
This has always been the case during
periods of business depression. AL
though many owners are thoroughly
aware of their need for new buildings,
they are still trying to get along with
what they have in anticipation of lower
building costs next wear
There are three general fluctuations
In prices which are always in opera
ton. The first of these is the very
longtime trend. This is a slightly ris-
ing movement and has been due in the
past primarily to the gradual increase
In the amount of gold and silver in
the world. 1t is generally because of
this trend that wages, for instance,
are so much higher now than they were
in Colonial times. However the effect
Of this gradual increase is slow from
ear to year, or even from decade to
t-eCade, and it becomes noticeable only
liter the lapse of a considerable period
of time.
History shows slow and steady
fall in prices after war. 1t is on this
trend that so many people are placing
their expectations of lower prices next
year and the year after but while it is
undoubtedly fact that this movement
is now in operation there is a third
element OF price fuctuation which they
ray have not taken into account. This
element is the normal business cycle.
We are now on an upward movement in
the present business cycle, which be-
gan little time before the first Of
thus present year. Unless some totally
unexpected and untoward events pre-
vent the normal upward movement of
the cycle, we should expect constantly
Improving business, constantly increas-
ing demand, and as a result upward
movement of prices until the end Of
this cycle.
1T now costs is to 20 per cent more
to build than it did IN the first part
OF March Of this year. We do not think
IT likely that lower building costs will
Obtain for at lna st eirhtnnrs r,,nr4hr