Evening star., 1928-02-29
OUTLOOK IS BRIGHT
|NBU|LD|NG TRADE
Construction Has Turned
Largely to Commercial and
Industrial Structures.

Specal nfspstCh TO The Star.
NEW YORK. February Building
projects announced and licensed dur
ing this month have been far in excess
Of those for February, 1927. Moreover.
actual construction work in volume has
now begun This will give the indus
try a magnificent start or 1928. stree
real heavy construction work was not
possible AT this time last year bcCa
OF the weather
The volume of construction now in
progress is about 9 per cent larger than
year ago. In some sections /. ranges
as high as Is per cent.
There is no doubt whatever that resi-
Dental building has SlaCkencd. The de-
ficiencv of dwellings in rearly all the
large cities has been met. Indivi iual
home building IS still progressing at
fine pace. especially in the suburbs. but
this factor Of the building industry vii,
BE- less important this year than last.
Skyscraper's Day Has ilawned.
The construction which is ~ounted on
to raise expenditures above the $1,000
100000 mark this year is industrial,
commercial utility and engineering con-
struction. Engineers and architects say
that the day Of the skvscraper has just
3awned. In the last few weeks plans for
more than a dozen Office buildings of
over 40 stories and towering between 700
and 500 feet IL the air have been an
nounced
This trend is also strongly in evi-
6ence in the Central West and in the
South. California is pressing forward
and occupies third position after New
York State and Illinois. Birmingham
and Atlanta show gains as compared
with year ago.
The conditions cited above have had
most salutary effect on the real
estate markets
The index figure Tor the country as
o whole. as measured by transfers and
conveyances in over 80 cities. is about
four points higher than year ago.
The activity in real estate is not ex-
pected 10 reach its top until toward the
end of next month.
There is no apparent lack of funds
for the financing Of this tremendous
amount OF building. The situation has
brought great satisfaction to the mort
gage bankers and 10 the insurance COM
panies which have large sums invested
il city real estate mortgages. They
say there is less speculative building
today than at any time since 1920 and
construction is being based on actual
demand.
Financing in Larger Units.
The financing of construction will be
In larger units than in 1927, owing to
the character of the buildings projected.
Some Of the skyscrapers viii cost be-
tween S30,000.000 and $4,000 600.
Costs are fairly stable. The trend in
the price of materials is somewha high
er, but skilled labor scales are stable and
the cost of unskilled labor seems likely
to decline slightly below the 1927 levels.
Rentals have shown slight decline in
many cities during the last few months.
especially for housing. but the trend
now Is reversing itself. No marked ad-
vance is in prospect, but the situation
Is commencing TO show much more
stability
The demand occasioned by the start
OF work on the many new structures is
having a most encouraging e6Sct on
the material trades. Structural steel is
strong. Cement producers seem likely
TO have a good year. Price improve
ment has not yet been marked because
the demand has not yet grown I'D TO
the increased capacity Of the mills.
Lumber Is looking up and 1t is likely
that the cut OF 1927, which totaled
14.219. .520.476 feet. win be exceeded this
year. Brick is strong and hardware in
good demand. Paint and varnish manu-
facturers are making preparations for
O big year.