Evening star., 1950-06-25

So far, the chief effect, apps
tions in prices of finished houses
which would have been possible as
a result Of (a) increased labor
productivity, and (b) the faster
construction tempo resulting from
postwar experience and ability to
schedule production without the
handicap of materials and short
ages.
Behind the price rise is the vast
housing program which has got
under way so far this year. AL
ready, builders have started $751;
600 dwellings. This is the biggest
five-inonth volume in history and
has added to the already high
demand for building materials. AS
a result, some shortages have de-
veloped In different parts OF the
country.
The majority Of observers be-
lieve. however, that the rise in
building cost indices reflects
largely q furry. With q leveling
out Of activity, the present choppy
seas are not expected to grow
much worse or last very long.
Present calculations on this
score, however, would have to be
thrown overheard If the current
housing boom gathers further
momentum. A few more record
smashing months probably would
bring:
Timber Prices Soar
1. Additional increases in mate
rials prices.
2. Reappearance of widespread
demands for premium wage rates
for certain scarce construction
craftsmen.
Up to the present, so far as is
known. premium wage rates are
not generally being paid. In other
words, labor-hungry contractors
have not started to bid against one
another for bricklayers and other
craftsmen as they were doing
only year or so ago.
AS of June /, the statistical cost
level had climbed back to point
q bit above the postwar peak
reached in late 1948. The faster
construction tempo, plus higher
labor productivity, still permit the
industry to build today at some
what lower costs than in the
previous peak period. most OBJ
servers believe. ...
Lumber prices began their first
tentative upward climb early in
the year. A few increases in other
materials have been announced
from time to time, including brick
price boosts. But all have been
slight in comparison to those for
lumber items. Most wage changes
went into effect in May or June.
If all prices had skyrocketed in
the last month or two in the same
fantastic fashion as the prices Of
some lumber items, industry OBJ
servers contend, it wouldn't be
long before few persons would
either want to buy or be able to
buy.
The price Of flooring lumber.
say builders. has jumped as much
as $50 a Thousand board feet in
the last few months. This is said
to represent roughly Is or 80
per cent increase.
Industry Blames Taxes
Concurrently with the rise in
lumber prices have come a furry
of press releases from the lumber
industry blaming the cost of
housing on "burdensome Federal
taxes" and other factors.
Fortunately, the prices OF other
building materials have not fol-
lowed what builders refer to as
the "haywire" course Of those for
lumber.
Lumber retailers in Washington,
apparently, are just as much in
the dark as to the reason for price
increases as builders. They seem
to think the rises are unfortunate
1.-THE planning mills blame it on
the saw mills, and the saw mills
blame it on the cost of getting
a tract of timber" said one Dis
trict dealer. Personally, I think
it's the old story of the bigger the
demand, the higher the price. And
right now there is an awful de-
mand."
Exactly how much have build
and direct: No one knows exactly
where do costs stand now in rela-
ton to their level before the wal
and in other postwar years?
The answer can be made briet
and direct: No one knows exactly
because no one has the whole
picture in detail.
The reasons why are simple:
l. Averages cannot tell the
story, since there are many varia'
tions between the costs Of differ
ent builders, and Of different
areas.
2. No one has been able tx
measure exactly the changes ir
labor productivity.
8. No one can measure exactly
the savings made possible through
the ability of contractors to sched'
ule construction and increase thu
building pace in relation to earlier
years.
All this would have an effec'
on what are the actual costs O.
building today in comparison ii