Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-20
ACTIVE BUILDING
YEAR IS FORESEEN
More Than Billion to Be
Spent on Roads, Streets,
Etc., by December 81.
BY j. G. ROYLE.

NEW YORK, June 2O.-More than
one billion dollars will be spent in con.
struction, in other than that of build
ings before December 81. Plans now
according to officials of the National
Association of Builders Exchange. Full
~ half a billion will be spent in build
ing and improving roads and in paving
streets. The other. half will be re-
quired to repair the damage to bridges
dams, levees, roads and other con
struction throughout the flood dis
trcts of the South.
These facts make it evident that
the 1927 building year will account for
over $6.250 ,000,0 and may run as
high as $4,000 100000. Not much terror
remains in the repeated cry that
building is to suffer a distinct re.
cession. 1t is undoubtedly true that
dwelling shortage in some sections
has been filled. But it is also true
that requirements and the demand oc'
casioned by the steady increase in
Americas population make it necess
airy to spend around four billions on
building each year, even when nc
shortage exists.
School Building Plans.
AS to 1927 the Government has a
program of $225 100000 and the
amount spent on new public schools
will far exceed that sum. Permits for
erection of dwellings have declined in
number since January 1. But these
permits are no. longer an accurate
measure of building activity. They
l. ltaf al or n1 ~
for months or years. or they may
never be used. Actual contracts let
however, are ahead of those let UP
to this date in 1926.
In the majority of sections through
out the country real estate prices are
holding firm. Rents are pretty well
stabilized and little change has taken
place in those for residences. Rentals
for centrally located business prop
erty have shown marked firmness. al
though not a great deal of advance
according to the National Association
of Real Estate Boards.
Cities of 100000 to 100000 popula.
ton have shown the largest percent
age of real estate activity, but most
of those citie : where rentals are
higher are in the half-million popula
ton class. The activity in dwelling
property has been strongest in the
West and far West, especially on
the Pacific Coast, while there has been
drop in the Northeast and Southeast
Atlantic States.
AS to the Florida situation. there
are many residents who sold their
property at a high figure who are
now in commanding position. They
received enough in cash to give them
a profit on what the sold property
cost them. Few of those who took
mortgages are closing them. being
content to draw down s per cent in.
terest until values improve.
Resort Realty Active.
In the North resort realty is active
and building is progressing, owing to
improvement in transportation. The
boom" market seems to have trans
ferred itself to Canada. however, since
the international highways and
bridges have opened
In some Atlantic cities sheriffs' sales
of real estate have developed rather
rapidly. A number of factors are
responsible. Some speculative builders
have attempted more than they could
finance or have had to sell because
of accumulated carrying charges.
Other sales resulted from the small
equity which many home-buyers had
in the houses. They had been talked
into buying on too narrow margins
and could not meet the carrying
charges.
Wages in the building trades are
fairly stable, with no marked trend
either upward or downward. The
same is true to a large extent OF
materials, in which competition con-
tinues extremely severe. The workers
most to benefit from the trend today
are the unskilled or semi-skilled men
who work on the highway, bridge
building and public work jobs.