Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-01
BUILDING OUTLOOK PROMISES
WELL FOR 1927, STRAUS FINDS
Conditions in This Vicinity Are Stabi-
lzed-Shifting In Country Will
Depend on Demand.

rents are on new level like all other
| prices and costs, and those who hope
| for a drastic decline TO pre-war levels
are bound to be disappointed. >.
Rise Is Anticipated.
The standards of living of the
American people will never go back
| ward. Our people are going to con
tinue to demand the very latest i'm
| provements and conveniences in their
| homes and in the buildings in which
they transact their business, Labor
| in the building crafts and in all other
departments Of American industry, for
| that matter, will steadily move for
ward in the matter of wages. Due
to increasing population, growing pub
lie improvements and increased taxa
ton, the cost of land in convenient and
desirable localities is continually ad-
vancing in our cities and towns, and
this movement is not likely to reverse
itself. No rapid decline in the level
of all prices is a probability of the
near future, while a rapid rise is quite
within the range of possibility. All
these factors point to sterilization
rather than to a drastic decline in
rents.
With the exception Of certain fac
tors which recently have been devel-
oped in the real estate bond situation
and to which public reference was
made by S. w. Straus in a speech be-
fore the American Construction Coun-
Gil in Cleveland early in November,
the outlook for 1927 is promising and
suggests a building year, which will
again prove to be the backbone of
American prosperity. The rapidly
growing volume of first mortgage real
estate bond issues makes it necessary
that every possible safeguard be
placed about them to the end that
neither the investor nor the general
business of the country be placed in
jeopardy. Along these lines Mr.. Straus
has recommended the policy of real
estate bond houses segregating sound
and approved assets to meet all La
bilities for the construction of build
ings upon which the loans have been
made, such segregation to be under
State supervision.
Country Resists Reverses.
AS during 1926, the coming year will
see a considerable shifting of activity
between different sections of the
country and as between types of facili-
ties. Such shifting win be based pri-
marily upon local supply and demand
conditions and upon the degree of 10.
cal prosperity. In those areas where
local purchasing power has been i'm
paired by crop failure or storm dam
age or price f1uctuation or other mis-
fortune and in those cities or sections
Of cities where supply has caught up
or more than caught up with imme-
date demand, building activity is like
ly to show declines from 1925 levels.
In the South, for instance, the liqui-
dalton of the Florida boom, the tor
nado damage and the drastic decline
in cotton prices are likely to slow up
temporarily the economic transforma-
ton which was taking place south of
Mason and Dixon's line. But we
should not exaggerate the extent of
these reverses and particularly we will
do we'll to bear in mind the ease with
which the Florida boom was liqui-
dated, and the apparent slight effect
such liquidation has had upon the
economic structure as a whole. SO
great and SO diversified is the wealth
creating capacity of this country that
comparative disaster to one industry
or to one geographical area seems to
be borne with comparatively little eff
feet upon business and the country
as a whole.