The Waterbury Democrat., 1941-01-13
Rising Costs Seen As
 Threat To Building
Real Estate Association Claim Materials Are Higher in
 80 Per Cent of the Cities-Specially Lumber

Chicago, January 13-Home build ing for 1941 has a very favorable situation in respect to money costs, but cost of materials is rising in 89%o of the cities of the country That is the situation found by the National Association of Real ES- tate Boards in its 36th semi annual survey of the real estate market, covering 237 cities. The findings on construction cost trends and interest rate changes, made from confiden- tial reports by local member boards of the association, were released to- day.
 The median rise in cost of home building materials since the defense program took hold has been 10 per cent, but the rise has gone higher than that in 47 per cent of the cit ies. In one-fifth of all communities there has been a 20 per cent or greater advance. Getting Suffi- cient supply of home building mate rials, in the face of cantonment demand and the like, has become a worry in 28 per cent of the cit ies. There is actual shortage. how ever. in only 4 per cent of the cities as yet. Another 8 per cent are approaching shortage. At least one city says, Supply situa- tion not so acute as it was two months ago." Governmental eco nomists estimate that 90 per cent of the lumber at present needed for cantonments has now been purchas- ed.)
 Labor supply for home building feels the competition of govern mental projects, often those in some neighboring areas. Labor costs are problem in 57 per cent of the reporting cities, and rising in 54 per cent of them, much less stable situation than was found four months ago in an inquiry among home builders made by the asso- ciation. Labor supply for home building is giving concern of 35 per cent of the communities. Labor shortage has developed in 19 per cent of the cities, is approaching in others. There is shortage of skilled workmen in an additional 10 per cent of the cities. The Cleveland, Ohio, Real Estate Board goes so far as to say: Outlook for volume of new construction of dwellings, apartments, and business space de- bends upon priorities."
 More Active Demand for HOmesiteS
 Current prediction of government tai statisticians that residential building in 1941 will exceed the 1940 volume by about IS per cent. Certainly with rising employment and rising family incomes resulting in rising demand for residential space, the market for homesiteS is more active than last year at this time in 50 per cent of the cities covered in the associations survey, and it holds at least as high as last year. level in an additional 42 per cent of the cities. There was slump in only 8 per cent. Significantly, cities over the 100000 population mark have the most generally inn proved subdivision market; GA per cent of them show homesite demand higher than last year.
 Dominant Interest Rate for New
 Homes: 5 Per Cent
 Interest rates and money supply for real estate investment show lit- tie change from a year ago, but what trend there is is favorable. Interest costs are on last years level in 80 per cent of the cities, are falling in IT per cent of the cities, rising in only per cent. Capital is available in excess of loans in 85 per cent of the communities Gas against 81 per cent year ago). Loans are in excess of capital sup ply in only 5 per cent of the cities. For first mortgages on new moder- ately priced homes per cent is most frequently named the pre- vailing rate. The 5 per cent rate replaced the old per cent as conn monest for home mortgage money only about year ago, the survey series found.