Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-18
1927 CONSTRUCTION
FALLING OFF HERE
Marked Decrease in City's
1926 Building Record
Already Noted.
BY DON 8. WARREN.

Regardless of what the volume of
new construction operations through
out the United States may be thus
far this year in comparison to the
sensationally high levels of the two
preceding years-a subject vigorously
debated by contractors and bankers
there are very clear indications here
that the total value of building opera
lions in the District of Columbia this
year will be materially below the high
figure Of $63 100000 attained during
1926
The facts are, new building projects
in the District. exclusive of the stable
Federal building program now under
way, are running approximately SO
per cent behind the total value of OPP
erations during the first five months
of last year
According to building permits issued
by the District building inspector, Col.
John w. Oehmann, the value of work
approved during the first five months
of 1927 came to a total Of S1S.17S,770.
as opposed to a figure of S2S.S00.1 1876
for the same period in the year 1926.
or figure of 27,136. 466 for the five.
month period in the calendar year
1925. This constitutes a slump this
year amounting to Sc per cent from
the period last year, or a decline Of
approximately 33 per cent from the
total for the five months in 1925.
Considerable Cut Likely.
1t is possible, on the other hand,
that number of unusually large
building operations might be project
ed later in the year that would run
the total operations for the year. to
an Unexpectedly high volume. This
very thing, to degree, occurred here
last year. But indications now point
to considerable decline for the year
1927.
Col. Oehmann. on the basis of this
years record to date and in the light
of past experience, predicts conserva-
lively that the total for this year and
for the following four years will APP
proximate the $4,000 ,000 level. as OPP
posed to the total of $63, 900 900 of
1926.
This decline from the high level of
operations during the preceding two
years. it is pointed out, is in line with
the movement toward sterilization
that has apparently been in progress
Tor more than six months here
Regarding the national situation,
there has been raised considerab BILE
confusion of opinion among contrac-
tors, bankers and economists survey
Ing building operations. For instance.
S w. Straus & Co, on the basis of
reports of building permits issued in
500 cities over the country, compute
the construction work thus far this
year TO be 9 per cent below the total
Tor the same period last year. The
F. w. Dodge Corporation, on the
basis OF reports from the 81 States
East of the Rock Mountains, saws
the decline is but per cent. And an
OFFICIAL statement today from the Ma.
tlonal Association of Builders Elk.
changes insists that 'tall Indications
point to the fact that 1927 will prove
TO be one of the greatest years in
the history of the building industry.
although the total investment in new
projects may not be quite as much as
en 1926" The prediction of the CON,
tractors is based upon the amount of
contracts let .or contemplated. rather
than building permits.
s45,0O0,00O Near Normal.
Should the volume of building OPP
erations in the District. attain figure
between $45, 0oO, 900 and $50, 000, 900
this year, it would be regarded in
some quarters as about normal. With
the exception of the two unusual
years of 1926 and 1925, it is pointed
out, the total of local operations was
close to such a figure. The total for
the year 1922 was about $4,000. 900:
for the year 1923 about $50 .0O0, 600
and for the year 1924 slightly over
$46 900 900.
If the present monthly average for
building thus far this year is carried
through December the total for the
year will stand close to $45. 900 900.
This prospective decline from last
years high record is viewed with
equanimity by local real estate op-
orators, and the tone of the market
here Is regarded by a number of lead
ing realtors as good. A decline In new
building operations was essential to
the sterilization of the rental situa-
ton, they point out, and while real
estate sales are somewhat below last
year, there is considerable activity,
and real estate men generally are
optimistic as to the future. a nun.
Der OF the larger firms report their
sales on the increase and in addition
TO number of large Office buildings
ana other structures now being com.
pleted, there are several large opera.
lions now starting.
y Realtors point out that Washington