Evening star., 1947-06-22
Nations Home Building
SlumpsD Due toHigh Cost
Housing Shortage Considerably More Serious
Than Last Year, With Nearly 4Oeo Less
Spring Construction Started

NEW YORK.-The housing She
Is far more critical than a year agt
Almost 40 per cent fewer new
last.
Their average construction cost
The number of families evicte,
the total of new dwellings erected
This serious situation is disclosed
in a survey tabulating official hous-
ing statistics in 157 of the Nations
largest cities, just completed by the
Associated Press.
While the need for new housing
has been estimated as high as TO-
000,000 units, only 37,514 new homes
and apartments were started In 157
cities in the first quarter Of 1947.
Sixty-three of. the cities had wait
ing lists showing 37G,773 families
without homes; only Is ,238 dwelling
units were started in those cities
Last year, 61,795 new dwelling
units got under way in the same
period in the 157 cities.
(According to figures of the Bu-
reau of Labor Statistics, housing
starts through May were still be-
low the disappointing volume for
the reconversion period of last years
first five months. For example, the
number of dwellings started by pri-
vate builders in the New York area
was still SO per cent below the first
five months of 1946)
Behind Last Year
Estimated construction costs,
without land or extras, amounted
to $2o7 7,139, ,485 for the dwellings
started in the first three months
this year. The flrst-quarter total
in 1916 was $27S, ,75S, $50 for the much
larger number of units.
Thus the average estimated
building cost was $5,548.31 per
dwelling unit this year, in contrast
to $4,512.65 per unit year ago.
However, those averages embrace
both private homes and apartments.
Some of the increase also may be
accounted for in the number Of
emergency temporary dwellings pro-
vided for CT students and their
families in the early part of last
year.
The Dow Service, Inc, specialists
in national building reports, reports
residential construction costs about
80 per cent above the first quarter
of 1916.
Final costs are frequently far
higher than these basic estimates.
For example, in Birmingham, Ala,
estimates are regarded as so per
cent under final costs. In Denver,
where cost figures do not include
heating, plumbing and electrical
work, the average for permits issued
in the first quarter is $4,370, but
the building inspector says that
single dwellings sell for around
So, 1000.
Costs Skyrocket
The effect of last years emer-
gency housing on the comparison is
particularly noticeable in the col
lege States of the East. In New
England the number OF homes
started this year was 66.1 per cent
below the 1916 quarter, while aver
age costs went UP from $3,723 to
Sc pol, amounting to 66.5 per cent
rise. In the Middle Atlantic States
construction was down 63.4 per cent
and average costs were up from
$3,153 to S5,760-an 82.6 per cent
rise.
The South, on the other hand,
showed a shade of a decline in
average costs. While the number
of homes started was off 1858 per
cent in the South, average costs
we're shaved from S4,550 to $4,494
down IL per cent.
The Midwest and Far West were
nearer to the national average, pro-
duction being down 1926 per cent
and 34.9 per cent, respectively, in
those areas, with average costs up
12 per cent and 241 per cent, re-
spectively.
Builders almost unanimously
blame high costs for the slump. In
Cheyenne, Wyo., they say, "the high
price factor is retarding building
and buying" Col. w. E. Leonard,
director of the Veterans Housing
Center in Washington, D. c., says
contractors complain that high con-
struction costs prevent the building
of houses to sell in lower brackets,
or for rent to lower income groups
Some land prices are 10 times over
the 1910 level" he adds.
No Sign of a Break
Nor is there much sign OF a
major reduction in costs. The
Architectural Forum points out
that house that called for $1,000
worth of lumber in 1899 now needs
s2,828 worth. contractors feel
that a cut of 20 per cent in lumber
prices would be enough to bring the
building market out of hiding" the
Forum says. But even such cut
would still mean a $2,362 lumber
bill for that house.
Reports are prevalent" observed
the House Appropriations Commit
tee, that building materials have
become available in volume that
is beginning to saturate the market,
and that price reductions in many
lines are in the off1ng because sup
ply is beginning to exceed demand" "
But this has not yet been reflected
in activity.
THE clnu,dnyryY, in cnpstr1Ipfio1