Connecticut western news., 1922-12-07
BUILDING PROGRAM WILL
 BE EXTENSIVE IN 1923
Roger w. Babson Warns Against Raise in .-. r-F
 Prices
FEATURE OF RECOVERY
End of Coming Year Will Record More Than Five Billions
 Spent for Building


 late as to whether the building boom has spent itself. Roger W. Babson evidently doesn't think it has, Tn commenting today on the building outlook he called attention to sever al bullish factors.
 'New building" says Mir. Bab- son, "is the outstanding feature of our business recovery. It is what sta~tcd Us o1 the road to better business. Never before in the his tory of the country have so many new houses beeh 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 S5S9,000,- 900 for homes; this year we have al- ready spent $1,099, 100000, and when the gong rings on December 31, the total will very likely show 100%o more than in 1921.
 "This building revival is not con fined to houses either. House build-N ing has been the most spectacular, but we have also built many more offices, factories, schools, hospitals, churches, amusement halls, public roads, bridges, reservoirs, memorials, in fact, all kinds of construction. Whereas our normal building total is about S3,Q00,0 100000, the end of this year, we shall have built to the extent of $5,000,000000."
 When asked if he did not think that we have already over-done this building boom MT. Babson replied:
 'I do not think so yet. I look for continued building activity, both in residential and business building for the greater part of 1923. Beyond that time, I expect a decline. A sur vey just made by, the National Asso- citation of Real Estate Boards shows that, out of total of 1S4 cities scattered over the country, 121 cities still report a housing shortage. Of the remaining 63 cities, 53 re- port no shortage and only 10 a moderate shortage. This study cor roborates my opinion that there is still much residential building to be done, altho the peak may have been passed"
 "What about rents?" MT. Babson was asked. .
 "High rents have probably passed their peak. The long swing will be downward. Here again it is ques- tion 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 course, the trend will turn downward as the demand is more fully supplied. In- dustrial and business rents show stiffness due to business recovery, but these do not indicate any long continued advance.
 'I am particularly optimistic with regard to suburban building devel- opment. The boom in city building will probably not last more than year, but suburban building is differ ent. Auto traffic is so congested in the big cities that shoppers had rather trade in suburban stores than ' drive into the heart of our great cities. City dwellers are looking for homes in the country. l cannot em- phasize too strongly the importance of this tendency toward suburban 
 The Statistician 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 are kept down at least near present levels, the people will stop building, just as they did in 1920. in fact, 1 do not think we will see quite so much building next year unless there is some reduction Tn ,osts. During the next few months prices should show some seasonal weakness. But as sure as he material dealers start in to boost prices next summer, they will choke off their business. The same warn ng applies to labor. Wages are al- ready as high as they can be and still allow much building. Both la DOT and material men should realize that it is better for them to have steady building at moderate profits than it is to have a short squirt of building at high profits, followed by a long period of idleness.
 However, what interests me as much as anything is the necessity of the waste in time, labor, and materials in the building busi- ness. I firmly believe that saving of 15fo to 25qo in the cost of build ng could be made by cutting out
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