Evening star., 1947-04-20
Home Building Drop
Reported by Creedon;
Cut in Costs Urged
By Robert ]. Lewis

by koDeff J. Lewis
Housing Expediter Frank r. Cree
don last night disclosed that the
number of new homes being started
has declined sharply this year in
comparison to last years low rate
He warned that unless costs are
reduced home building may come
to virtual standstill.
His warning on spiraling costs
was the second in three days, indi-
eating the Governments growing
concern over the outlook for produc-
ton Of homes for veterans and
others.
Replying to the Creedon state
nent, Frank w. Cortright, execu-
tive vice president of the National
Association of Home Builders, de-
MED that housing costs had risen ito
the same extent as the general price
level
Removal of Curbs Urged.
He called for removal of the re-
manning Government controls and
demanded that labor give "a full
days production"
Mr.. Creedon's call for lower hous-
ing costs was said to have the sup
port of President Truman. Mr.
Creedon and the President conferred
Friday before 1t was issued.
During the first quarter of 1916
there were 192,100 homes started of
all types" he said. During the
same quarter this year, including
preliminary figures for March, there
were only $4,000
Mr.. Creedon reported that in
March. last year, construction Of
$4,000 new houses was started, while
last month, on the basis of pre-
liminary estimates, only SO 900 houses
were begun.
What's more, he cautioned, there
has been no seasonal uptrend in
April such as would be expected.
From March 20 through April II,
he said, only 23,600 Federal housing
permits were issued.
Million Forecast Held High.
Home builders and Government
spokesmen earlier had forecast that
100000 new dwellings would be
erected this year
As against this prediction, Edward
r, Carr, Washington home builder
and president of the National AS
socistion of Home Builders, told
House Small Business hearing Fri
day that present construction indi-
Gated only half that number would
be built unless the rate was stepped
UP.
In his statement last night, Mr..
Creedon declared starts on new
homes aren't coming along fast
enough or in sufficient volume to
produce the million new permanent
homes that industry said it could
build this year"
Mr.. Creedon attributed the slow
ing up of the housing program to
"todays price levels"
Favorable Factors Listed.
Declaring builders should not be
discouraged, however, the housing
chief said "the market is there"
and pointed to increasing supplies
of building materials and the limi-
ia tion on nonresidential construc-
tion as favorable factors.
The time has come for home
builders and the building trades to
consider the implications of a dry
ing up of starts and to take steps /,
to get more houses started" he |
said, .a,.
Similarly, producers and distrib-
utors of building materials should |
review their operations, and labor
It's productivity, so that through |
their joint efforts building materials
costs may be reduced"
Mr.. Cortright assailed Govern
ment spokesman for urging veterans
to 'go easy" in home buying.
Home Values Defended.
"1f the Government really wants
to encourage construction of homes
for veterans and others, he said, It's
agencies should stop telling the
public that today's homes are not
good values and that construction
costs will recede from their present
levels.
"Today's homes are good values,
and nobody can be sure that con-
struction costs will go down sub
stantially."
Mr.. Cortright said that home
prices had not risen As much as
"most commodities and durable
goods"