The Washington times., 1925-01-31
BUYING MARKET
FORECAST IN
BUILDING
Robert Beck, Construction Ex-
pert, Gives Survey OF
Activities in 1924

Despite the fact that 1924 saw
the establishment of new records
for building construction, there still!
Is q large shortage of space through
out the country, according to a sur
vey made by Robert Beck, president
Of the Longacre Engineering and
Construction Company. This is felt
chiefly in the dweIIing and busi-
ness building fields.
The big change OF the building
year, however, according to the sur
vey, viii be a swing from sellers
to buyers market.
Demand for space, stabilized costs
and the general feeling OF conf
dence are the chief factors likely
to effect an equally high mark in
1855 building level with that OK
1924. Materials maintained an un
usually steady equilibrium last year,
the general level being to per
cent below that OF 1928, and for the
first half, at least, or the new year,
they will probably show little varia-
ton.
Labor Still High.
Labor, the other great factor in
construction costs. is still at an
extraordinarily high level, but it
can hardly go higher, and If the
volume of building should fall off
20 any extent, it Is quite possible
that it may decline. Since there
was an ample supply Of labor last
year to put through a record
amount Of building work, anything
less than that amount necessarily
would increase the labor supply in
proportion to the demand, and thus
affect wages.
Mr.. Beck points further to a
DEVELOPMENT of the late months Of
1924, and which is likely to assume
some prominence in 1925. This is
the fact that buildings, Of practi-
cally every type, are now being
sold, rather thai bought.
During the first few years fol-
lowing the close Of the war there
was rush to obtain control OF every
building that went up. Today most
projects are being sold on their
merits, and sales resistance is
steadily increasing. The situation
varies, Of course, in each locality,
but that II exists is an incontro-
vertfbIe fact. What is more, 1t is
q natural and healthy one.
Building Likely to Boom.
The approach of a presidential
election in the fall held up many
contracts which had been approved
but not let. Some of these were
entered upon after the ELECTION
results were determined, but the
larger part will swell the figures
for 1925. It is expected that the
late winter and early spring months
viii see an immense amount Of
construction done Whether the
momentum impaired by this de.
ferred building will continue de-
ponds to some extent on the course
taken by general business.
Business men in every field, not
excepting building, have come to
recognize that a steady level of
average PROSPERITY is far better for
all concerned than the sharp swings
! from boom to depression. Forward
and backward Intersections are in
evitable, but an agreement seems
to have been reached that any ex
treme initiation or boom should be
avoided.
Sound Basis Is Good.
In building, where this economic
truth holds good as well as in any
field, the high records of the. past
two years might easily lead to over
extension. So those in this industry
should not be particularly concerned
with seeing new high levels reached.
What they are interested in is keep.
ing the industry on the sound basis
on which it is resting at present.
ket in buildings has developed means
that there will be no reckless com.
nlitments: that the construction that
does go forward is not only needed
but wanted.