Perth Amboy evening news., 1922-12-09
BUILDING BOOM
IS CONTINUING
Roger w. Babson Expects
Much Construction Work
During the Coming Year
BY G w. BABSON

WELLESLEY HILLS, Mass, Dec.
9.-There has been much discussion
| of late as to whether the building
boom has spent itself. Roger w.
Babson evidently doesn't think it
has. In commenting today on the
building outlook he called attention
to several bullish factors.
New building" says Mr.. Bah
son, sis the outstanding feature of
our business recovery. 1t is what
started us on the road to better bust
ness. Never before in the history
of the country have SO many new
houses been built as in the first ten
months of 1922. For every house
that was built in 1921, two have been
built this year. Last year in twenty
seven northeastern states of the
country we spent $6SS,000,0 600 for
homes; this year we have already
spent 81, 099, 100000 and when the
gong rings on Dec. 81, the total will
very likely show 100 per cent more
than in 1921.
This building revival is not con-
fined to houses either. House build
ing has been the most spectacular,
but we have also built many more
offices, factories, schools, hospitals.
CIluI Clft5, amusement ildlioj poDiAS
roads, bridges, reservoirs, memorials,
in fact, all kinds of construction.
Whereas our normal building total
is about $4,000, 900, 900, the end of
this year, we shall have built to the
extent of $4,000, 000, 000."
When asked if he did not think
that we have already over-done this
building boom, Mr.. Babson replied:
II do not think so yet. 1 look for
continued building activity, both in
residential and business building for
the greater part of 1928. Beyond
hal time, l expect a decline. A sur
vey just made by the National As
ISOLATION of real estate boards shows
that, out of total of 1874 cities scat
tered over the country, 121 cities
still report a housing shortage. OF
the remaining SO cities, SO report
no shortage and only ten a moderate
shortage. This study corroborates
my opinion that there is still much
residential building to be done, al
though the peak may have been
passed."
what about rents?" Mr.. Babson
IA asked.
High rents have probably passed
their peak. The long swing will be
downward. Here again it is a ques-
ton of supply and demand. The
coming decline in rents will not be
abrupt, at least, not until this build
ing boom has supplied more of the
shortage. Rental advances for the
present are slightly more numerous
than declines, but in the majority of
cities there is no movement either
up or down. Gradually, of cours
the trend will turn downward os
the demand is more fully supplied.
Industrial and business rents show
surprising stiffness due to business
recovery, but these do not indicate
any long continued advance.
81 am particularly optimistic with
regard to suburban building develop
ment. The boom in city building
will probably not last moro than a
year, but suburban building is diff
ferent. Auto traffic is so congest-
ed in the big cities that shoppers
had rather trade in suburban stores
than drive into the heart of our
great cities. City jewellers are look
ing for homes in the country. l
cannot emphasize too strongly the
Importance of this tendency toward
suburban expansion"
The statistican was asked what
effect building material prices and
labor would be likely to have on the
building outlook.
That's where the danger lies" he
replied. UNLESS prices of building
materials are kept down at least
near present levels, the people will