Evening star., 1938-12-24
S6,385,000,000
Building in
1899 Seen
Architectural Forum
Predicts Gain of
% Per Cent

1899 will increase % per cent to
$685. 100000, the Architectural
Forum magazine predicts today
after a Nationwide survey of econ
omists and leaders in the building
field.
In preview of the survey which
will be published in its January
issue, the Forum declares that the
increase in construction which be-
gan in the last six months of 1888
will carry over into next year, pro-
buildings best year since $780,
The survey indicates that non
farm residential building will be
the driving force behind the 1885
advance-increasing 80 per cent
from $1,285 100000 to $1,671 900 900,
the Forum reports. -ConStruction
of commercial buildings, which in
1888 cost $345 900 900, is due for an
1S per cent rise to s4O7 100000.
Industrial Building Forecast.
industrial construction will jump
% per cent from $245 100000 to
1901 100000. Public utility and pub
lie building will likewise advance
Expenditures for additions, altera-
tions and repairs will exceed those
of 1888 by about 20 per cent"
Basing its 1888 construction fig
ures on estimates of actual eXpendl-
lures for materials and labor in the
entire country as prepared by
Economist Lowell j. ChaWner of
the Department of Commerce. which
are exclusive of expenditures for
maintenance and work relief, .the
Forum points out that the opinions
of the building experts in the survey
, result from analyses of the many
factors affecting the probable trend
of building. including:
/. The housing shortage in the
residential field.
2. The vast supply of idle funds
seeking investments.
3. The decline in non-farm resi-
dental foreclosures.
a. The steadiness of rents, COM
pared with the generally downward
trend of building costs.
5. The possibility of labor short
age.
6. Improved business sentiment.
7. Increased Government spending
in building.
Low-Cost Housing Factor.
"Whether or not private enterprise
will work toward balancing the sup
ply-demand scales in the residential
field in 1889 depends upon how will
ing it is to tackle loW-cost housing
and, to a certain extent, upon how
much money the public is able to
save" the Forum explains. "Ex-
penditures for home building come
after those for life's bare necessities.
During the six-month period from
April through october, 1898, cost of
these necessities as measured by the
National Industrial. Conference
Boards index of the cost of living
decreased l per cent, and during the
same period purchasing power as
measured by the Department Of
Commences index of employees COM
pensation advanced 4 per cent. Con-
tinuation of these trends should ex-
pand the building market.
"A large part of the vast supply
of idle funds seeking investment is
available to qualified builders in the
form of mortgage loans. This money
may be had at lower interest rates
than ever before, and thanks to
F. H. A. mortgage insurance, an in
creasing amount of these idle funds
will go into residential building.
Home Foreclosures Drop.
"Since January, 1887, the trend of
non-farm residential foreclosures
has been generally downward-the
10-month total in 1888 (the latest
figures available) being about 10000,
or about % per cent below that for
the corresponding period of 1887.
while the trend of rents has con-
tinued comparatively steady during
the last IS months, building costs
have been generally downward and
now stand from 5 to 10 per cent be-
low those of September, 1887. Ex-
istence of this spread in the trends
of rents and costs is an inducement
to home building.
However" the Forum points out
"the current course of wholesale
building material prices is slightly
upward and, if the predicted in
crease in building for 1889 takes
place, the upward trend will probably
be more than slight.
Another hurdle in the way of
greatly increased building is the real
possibility of a labor shortage and
the boost in wages that would logi-
cally accompany it. While these
hurdles are not apt to interrupt
the upward course of building in
1889, they must be reckoned with
ana are definite hazards to any
activity OF boom proportions.
Optimism a Factor.
"Unquestionably the most i'm
portant single factor behind the op-
timistic opinion for buildings near
term future is improved business
sentiment. This renewed faith in
the future tends to loosen the purse
strings of big business as we'll as
Of potential home builders.
Then there is Government spend
ing-ordinary and extraordinary
Federal pump-priming began last
summer, but its effects on building
did not come until a month or st
ago and the bulk of the primine
will not be done until 1899 is vel
along in age.
with the possible exception O.
material costs and labor wages, al
of the factors mentioned above ar.
presently bullish for building" tn.
Forum concludes. "The near-tern
outlook for them is satisfactory, ane
II the anticipated activity in build
ing is realized, 1899 will be build
inp4 best year since 1890"
StreomIined Kitchens
A streamlined kitchen with al
T. =.