Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-04
BUILDING OUTLOOK
BRIGHT THIS YEAR
Survey Indicates U. S. Will
Spend SO, 900, 900, 900 in
Construction.

The 1880 construction requirements
of the United States total nearly So.
900, 100000 according to statistics just
compiled by national building ma
terial research association in its annual
building survey.
Although building during 1929 fell
below the average of the past five years
| increased activity for $780, the associ-
alton says.
There are 50 many variable factors
which partially control the construction
industry that all statistical estimates
must be considered in connection with
careful Judgment of intangible points, u
the statement continues.
Fundamentally, building depends
upon the increase and distribution Ct
population and the standard of living.
Other conditions affecting building may
be traced to these. AS long as our
population continues to grow and our
standards of living to improve, no more
than temporary receSsionS of building
activity need be anticipated.
Construction Depends on Population.
Currently. cur population is increas-
ing at the rate of about ], $50 900 per-
sons per year. In addition to housings
and other accommodations for these
for population movements, such as
shifts from farms to cities and from
cities to suburbs. 1t is estimated that
4. 600, 900 persons moved from farms to
cities since 1910.
Half a billion dollars must be spent
annually to replace buildings destroyed
by fire and storm.
Buildings of all types wear out. or
become obsolete. BY far the largest
part of all structures at present fall in
a group which shows a weighted aver
age economic life of about 40 years.
Thus two and one-haf per cent Of the
value of such structures will be used up
during 1880 and should be replaced.
I'm addition, current wear and tear
Of buildings expressed in alteration and
repair jobs set another huge demand to
be met annually by the construction
industry.
Repair Cost Decreasing.
eft is interesting to note that per
capita annual expenditures for repairs
are decreasing, according to the Depart
ment of Labor. Better and more dur
able materials of construction now be-
coming generally used will, without
| doubt, increase the average lie OF
structures in the future.
"As our standards of living increase,
| desire is set up for better and newer
structures. Many buildings are aban-
doned as obsolete or RACED. while still
physically serviceable, in favor OF i'm
proved design and equipment. The
productivity and success OF other indus
tries reflects itself in construction, as
| does the extension OF public works,
with the advance Of our civilization.
Recent organized undermining move
ments promise a hitherto relatively I'M
developed building market for the next
! few years.
| in the industry that the recent break
| in the stock market will benefit con-
struction. Large sums which have
been unavailable for investment ir
building projects have been released
and will contribute to an increased pro-
gram.
Banking Houses Seem Sound.
1.-THE financial institutions of the
| country appear to be sound and ready
to supply funds for large projects, while
mortgage bankers, building and loar
associations and insurance companie:
are stimulating residential and othel
small units of construction.
1.-THE Federal income tax has beer
reduced and the Reserve Board ha:
lowered the rediscount rate.
! Tine 1nouStrlaE leaoerS OF Inc Couu'
try have promised President Hoover
that they will carry out great program:
of construction and expansion.
Railroads and public utilities hav'
likewise planned support.
Estate governments, as well as thu
Federal Government, are to carry for
ward the construction Of public work
on a scale never before known.
at is felt that the principal cause
of the slight decline in building during
1929. viz. hard money, has been re
moved by the stock defiation and tina
1880 building should re-establish rec
ord by meeting the years require
ments."