Evening star., 1938-12-10
1889 Seen Best Year
For Construction
Since '@by Editor
Approoch to 1929 Level
Of 500, 900 Non-Form
Units Predicted

Next year Will De the DeSC year IN
q decade for contractors and opera
tive builders, Bernard L. Johnson,
editor of American Builder magazine,
declared yesterday in releasing q
statistical analysis of the building
outlook
THE total number of non-farm
residential units, public and private,
will approach the 1929 level of $780,
OOO," johnson said.
Both private and public housing
will show sharp increases in 1899,
the American Builder forecast in
dicates. A Is to IS per cent in
crease in private residential building
Is expected. In addition, the pro-
gram of public housing under the
United States Housing Authority
Is expected to get into action, with
estimates for the year ranging from
$4,000 to $4,000 residential units. A
residential unit is defined as accom-
modations for one family.
Builders Big Buyers.
"A return to the 1929 volume of
home building will be the strongest
toward prosperity declared john
son. Presidential building is lead
ing the way. There are from 100, 900
to 100000 building contractors in
the United States, but we estimate
that 10000 of these will do the bulk
OF the residential construction next
year" he declared. Their purchases
Of building material and equipment
will affect the entire economic struc-
ture."
Advance excerpts from the an
alysis include the following:
Tn the last half, and especially
In the last quarter of 1888, residential
building permits, contracts and con-
templated work, as indicated by
r. H. A. mortgages selected for ap-
praisal, showed such unexpectedly
large increases that most estimates
for both 1888 and '39 had to be re-
vised upward. The Bureau of Labor
Statistics, the F. H. A. Department
OF Economics and Statistics, and the
Department of Commerce building
analysts are in agreement that the
total number of non-farm homes.
public and private, built in 1888 was
between 1926 900 and $4,000 units.
The total value of private nom
farm residential construction activity
in 1888 is estimated by the Depart
ment of Commerce at 81 ,283 900 900.
81 Per Cent Cost Under $1,000.
Most striking of the statistical
data concerning 1899 is the manner
in which the F. H. A. mortgages Sc
lected for appraisal continue at ex-
tremely high levels. There is a direct
relationship between the number Of
these mortgages and the number of
urban one and two family houses re-
ported by the Bureau of Labor Sta
tistics. In the latter months of 1898
mortgages selected for appraisal
were running from 80 to ia per cent
ahead of last year, which is one of
the best possible indications of a
large and early increase in residen-
tial construction in 1899.
THE surprisingly large increases
In residential activity in the latter
part Of 1888 were largely in privately
built small homes and apartments.
Sixty-three per cent consisted of
one-family dwellings. per cent two
family dwellings and 81 per cent
apartment houses. A large part
probably IS per cent-of the apart
ment house construction was concen-
trated in the New York area.
The undoubted trend revealed by
the 1888 building statistics is toward
smaller homes and more homes built
on a speculative or for sale basis.
The F. H. A. program has given i'm
petus to the building of homes in the
lower-priced ranges and has greatly
stimulated their construction in bet
ter planned developments, both large
and small. The trend toward lower
priced homes is shown by the fact
that 81 per cent of the F. H. A. in
sured homes in 1888 were on proper
ties having valuation of $4,000 or
less as compared with SO per cent in
1887. This tabulation also shows
that 81,6 per cent cost less than
$1,000, which compares with 1877
per cent in 1887 and IS per cent in
1895.
Where Homes Are Built.
Another important development
IN 1898 was the expansion of rental
housing construction, consisting
largely of apartments and row houses
built under section 207 of the
amended National Housing Act, Linn
tied Dividend Division. This activity
was reflected in 1888 with an increase
Of more than $4,000 units. A further
increase in this type of apartment
and row house construction is anti
cipated in 1899.
ITO the average builder, national
construction figures are of use only
rs they indicate trend which he