Evening star., 1947-04-24
THE EVENING STAR, washington, d c.s..A--19
fHuRspAY II -
Buyers Strike IS Reported
Against High Building Costs
~ ,be A,,ee;s,ed Press

BY The Assseistsd Press
NEW YORK, April 24-New
houses stand empty and unsold in
many sections. Plans for additional
building are. deferred. Mortgage
LENDERS trim their appraisals.
Analysts Of the construction irl-
dustry agreed today these conditions
signal the arrival Of . buyers
strike against high costs and that
only the, elimination OF reduction
of many high-price factors viii per-
init the hoped-for boom In building
Ito get under way.
Some softening Of prices Of build
ing materials already Is reported as
supplies oyertake production.
On the other hand. new wage de-
mands have been made by some
building trades.
30eo Cost Cut Held Posaible.
George w. Warnecke, New York
building financier, said he believed
that cooperation Of industry and
labor in an attack on cost factors
could effect a 80 per cent reduction
in the present price for cor1struc-
ton.
He anticipates a duration Of six
months in the current slump In
new building. Were going to lose
this building year." he said.
A large investment syndicate re-
ported thousands Of newly con-
structed one and two family homes
standing idle on Long Island in the
New York metropolitan area, and
added, "this is. true everywhere In
the United States except the West
Coast"
However, apartment projects Of
the Metropolitan Life Insurance Co.,
capable of housing 1880 families in
New York, are preceding on sched-
|ule and may even be completed
ahead OF time with full occupancy
assured, company representatives
said today.
The National Committee on Hous-
ing, voluntary organization devoted
to problems Of housing and commit
nifty planning, in It's annual report
this week described the situation
this way:
Sales housing is being priced out
Of its market. The $4,000 or $4,000
house is too expensive for veterans
and others Of modest means and
too small to suit the family that
can afford that price. Builders
: - fear to build rental units at
today's costs when those same units
may have to compete five years
from now with new units built at
lower cost"
Many Projects Postponed.
Aside from the housing field,
postponements are reported in a.
number Of industrial construction
programs, both large and small.
Here the cost factor is not the only
one involved-there also is evidence
that some industrial programs pro-
jected last year are being reviewed
in the light of changed economic
prospects.
As against forecasts Of more than
$40 ,000, ,000,00 Of construction ac-
tivity this year, here is what the
latest reports are showing:
During the first two weeks of
April construction contracts let in
81 States reporting to F. w. Dodge
Corp, fact-hnding organization for
the industry, fell nearly $50 o,00o, 900
short Of the total for the same
period a year ago. For residential
contracts alone the decline was
more than $32, 500, 900.
The sharp reversal Of trend was
emphasized by the fact that in the
flrst three 1947 months awards es-
tablished flrst-quarter record.
Dun & }Bradstreet's figures on
building permits In ais cities for the
first quarter Of 1s47 showed = de-
clined Of about q third in dollar
volume from the similar period q
year ago. March permits, however,
were 40.7 per cent above those OF
February.
Abrupt Stoppage Unlikely.
Myron L. Matthews In Dow Serv-
ice daily building reports said there
is agreement that costs are too high,
but not to the point of pricing the
industry into general inactivity"
Despite downward revision OF fore
casts, he said, "l947 is still to be a
big year for construction"
A major syndicate of investors
expressed belief that there will be
no abrupt building stoppage as after
World War T."
Buying power is stronger now"
1t said. People have more saw
ings. They, simply have stopped
paying $4,000 for a $4,000 house
built Of inferior materials"
One New York syndicate reports
its clients currenly have only $50
apartments under construction COM
pared with 5000 units at a COM
parable time in 1941.
Lumber, principal factor in the
upturn in cost Of building mate
rials, is receding from its high levels
as supplies increase. Yards are
again soliciting business" one OBJ
server said, with prices in the New
York area SIS to $40 a thousand be-
low the levels of two weeks ago for
some grades. Hardwood flooring
quotations were reported around
$235-$250 thousand, compared with
S325-$400 paid under black market"
conditions.
Notable exceptions to the easing
of prices are plumbing fixtures, cast
iron and soil pipe and finished hard
ware. Brick is piling up In many
yards for lack Of buyers, while am.
Pile supplies of block and trim work
also were reported.
Mr.. Warnecke said mortgage lend
ers currently were becoming con-
cerned over the expenses Of con-
struction,S and were holding down
their apprAisals. which defernnir,a