Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-12-25
ANOTHER BIG BUILDING YEAR
ISPREDICTED IN 1927 FORECAST
Oft-Heralded Slump Failed to Materialize
in 1926 and Still Looks
Far Away.

country, as compared with 1854 at
this time last year.
There is no longer any shortage OF
buildings resulting from the war.
There has been no such shortage
from the beginning Of the year 1925.
Hectic building operations are over.
We are now facing more stabilized
conditions, and henceforth our con-
Struction must be in keeping with
our normal building requirements.
Spectators In construction have had
their day. Construction must be
thought of only in strict terms of
growth. requirement, population trend
and industry.
There is indisputable evidence that
in some localities there is an unsatis-
fed demand for housing and other
types of building; but taking the
country as g. whole, the building prob
lem is one of meeting the local re.
quirements. 1t is estimated that the
annual population growth Of the Ma
ton requires approximately 100000
new buildings of various kinds; re-
placing and remodeling structures af-
fected by decay, fire obsolescence and
other causes. Estimates from private
sources have placed the value of con-
struction to meet normal needs at
from $4,000, 900, 900 to $1,000, 600. 900.
Some idea Of the Nations building
requirements for 1927 can be gained
from the results of a survey of the
construction situation just completed
by the American Builder. Replies
to 5000 questionnaires sent to build
ers, contractors and architects
throughout the country indicated that
more than $1,000. 100000 worth Of
new building would be needed during
the coming year.
The forecast figures Of needed con.
struction follows:
Housing required for new
population annually. :. 81. 500. 900 900
new, popuiation.. -. 1.18s.s $50
Annual ITO tornado SeF;' and flood ''0'oooooo
;, loss .........., -. 100000 900
dwellings II the United .o.
Depreeistion and obssocies. ''o'1'S44ooo
casses applied of f. all other oso
LUGt1 ~, lS6. 4S6. 700
"A very large share of this is
residential, viz, $4,526, 573,518, includ-
ing hotels" said the forecast, "and
this is in strict keeping with the pro-
portion shown as residential by build
ing. permits in 274 cities of $4,000
and over"
More Public Structures.
There will undoubtedly be changes
In the activities in connection with
the definite classes of projects during
the next year. With the housing
shortage problem practically solved,
II is TO be expected that residential
and commercial building will
somewhat decline. Industrial, public
works and public utility buildings,
however. will undoubtedly increase in
volume. Because of an inadequate
iaoor supply, and the constant tend
ency toward higher costs develop
ment OF many Federal, State and
municipal building projects were de-
ferred until recently, and it win take
a long time to catch up with the
plans that have been made for this
type or work. These buildings have
become part Of the Nations DO
tentlal requirements and sooner or
later must be added to the sum OF
actual activities. The Federal Gov.
eminent has indicated that It will go
aneao during the next ~ months
with its $165 5000 public building
program authorized by Congress. and
TINS VIII undoubtedly give impetus
TO the 1927 building program.
residential structures will continue
10 account for the largest single Dor
eaon OF new building. There is still a
srsat need for cheaper housing ia
Ses throughout the country, as
wen as moderate demand for
homes. This need will have to he met
before any serious falling off in build.
ing can be expected. In MANY of the
larger cities there has been little or
no building OF the cheaper class of
tenements during the last seven or
eisht years Hence, conditions have
peeh brought about that are socially.
morally and economically unso1,nd
ADEQUATE housing conditions must he
provided for those of limited incomes
and during the coming year real
progress is to be expected along these
lines. 'A-~'e
The rising standard of living is a.
factor that will continue to influence
the building industry indefinitely, be.
cause 1t is based on the spirit of
progress, and is made possible by the
abundance and variety Of our natural
resources, the efficiency of America
laborers and the enterprise of the
American business man.
Recently there has been much talk
OF overproduction in building accom-.
modatlons. These statements have no
oasis IN fact, unless they are mar
roWed down to certain, definite types
OF buildings in certain, definite locali-
ties. They cannot be applied to the
situation as a whole.
Contrary to the reports that have
been broadcast, rentals in the better
grade and better located apartments
and hish-class office buildings in the
larger cities. especially in New York,
are fairly stable and have been show
ing little f11ctuation.
Rent Declines Temporary,
In connection with appraisals and
the financing of buildings, it must be
remembered that the possibility of a
decline in rents is always taken into
consideration. Rents may show a
slight downward tendency in the fu.
ture, but no drastic decreases are ex.
pected in the better types of buildings.
Any reduction in rentals that may
occur as q direct result Of overpro.