Evening star., 1938-04-30
BUILDING IN j. s.
|SDOWN SHARPLY
38 Cities Report Decreased
Activity During Years
First Quarter.

Building activities in the first quar-.
ter of 1888 show contraction in COM
parison to the 1887 corresponding
period, E. M. Craig, executive secre-
tary of the National Association OF
Building Trades Employers, reports.
The spring construction survey as
compiled by Robert D. Steele, associa-
ton statistician, shows the first quar-
terly returns of A States had a dollar
value of $595, ,982, ,843, compared to
1921 ,439,136 in the like 1887 quarter
and $602,958,79l for the first 1886
quarter. The dollar value of 38
cities for the first 1888 quarter to-
tailed slS5, ,427, ,499, compared to $780,
900,6l0 for the first 1887 quarter. In
dividual permits of these 38 cities were
40,422 for the first 1888 quarter, COM
pared to Al, ,955 for the first 1887 quar-
ter.
New York continues as the leading
city on dollar value, total of $l08,-
029,777. Los Angeles is in second
place and Detroit occupies third place.
Chicago's standing is seventh position,
compared to eighth place year ago.
Chicago is thirty-first on the list for
individual permits.
Others Show Decline.
Aside from New York, Los Angeles,
Pittsburgh, San Francisco, st. Paul,
Norfolk and Elizabeth, 81 cities
showed decreased building activity
during the first 1888 quarter, as COM
pared to the like 1887 quarter.
On home building, statistics show
that the first 1898 quarter is behind
the first 1887 quarter. Thirty-one of
the 38 cities reported 1894 homes
started or finished during the first
1888 quarter, as compared to 7,738
homes during the first 1887 quarter
Los Angeles continues the home build
ing leader, with 1,691 homes. Detroit
Is second with 697.
Practically all cities say that 9s
per cent of the building trades are
satisfied to let hourly wages continue
at their existing levels for another
year. Cleveland only recently agreed
to two-year moratorium to stabilize
wages at the hourly rates now in eff
feet.
New York leads all cities for high
building labor rates with an average
hourly rate of $3.50 Chicago is next
with $l.67. Cleveland follows with
$1.53. Los Angeles with an average
hourly rate of Sl24 is in the lower
brackets. Southern cities range be.
fuppn C1
Commodities Down.
Compared to 1887, prices of most
building commodities were downward
but slightly above 1885. Common brick
is Sll per thousand in Chicago, sl3
IN New York and $3.50 in Gin
cinnati
Building labor rates started on thei,
uphill climb in 1885 from the re.
duced rates of 1882 and 1898. Build
ing labor costs since 1885 were hoisteo
"a per cent in New York, 18 per cent
in Chicago, 20 per cent in Cleveland
and 81 per cent in Minneapolis. Los
Angeles shows slight raise of 4 pc,
cent.
Most cities report that rents will
not advance this spring, although
acute desirable housing accommoda.
tions still are predominently lacking
IN many cities. Mr.. Craig estimates
there has been built up during these
last eight years an approximate short
age of 100000 housing units, carry.
ing dollar value of over 10 billions
Other needed construction types also
run into billions of dollars.
Contractors say that building costs
were raised during the last five years
because they have been required to
hike their estimates to 10 per cent
due to social security, sales, surplus
earnings taxes, etc. No type of build
ing essential is exempt from this bur-
densome taxation, and naturally pyra-
mid when changing hands through
the various distribution outlets until
finally installed in the building. I'm
fortunately the last person remitting
these vaulting taxes is the ultimate
consumer, and he pays the peak cost.
Low Income Field.
Contractors are frank to point out
before genuine building boom can be
staged the low income field is to be
tapped first. In 1922, when the last
building boom got under way, the
small wage earners were more in a DO
Sition to own their homes or lease de-
sirable housing accommodations be-
cause their earnings were more in
proportion to prevailing labor and ma
terial costs at that time 1t is a re-
versed picture today, with eight years
OF low building activity behind us.
Over 80 per cent of the working masses
earn less than $4,000 annually and
their earnings are greatly out of bal
ance with the wages now paid tn
building tradesmen.
In a number of key cities the con-
tractors are now holding meetings on
tne benefits of the amended Housing
Act IN the hope that through their
e1orts considerable large-scale hous-
Ing projects will proceed. In the Chi.
cago area 1t is estimated that $40. 600 =
poo for large-scale housing is now
pending, and most of this is to be
financed under the amended Housing
Act.