Builders on Ways to Hold Down Material Gosts

The federal government could help dampen soaring construction costs by taking steps that would increase the supply of softwood lumber as well as increase production of other essential buildine materials now in short supply. -

Vondal Gravlee, president-elect of the 105,000 member National Association of Home Builders, made that suggestion recently while testifying before the Council on Wage and Price Stability, which is investigating why prices of building products are increasing at a pace much faster than other commodities.

In his testimony, Gravlee focused on price hikes during the past year of 13.20/o for softwood lumber, 2-10/o for general millwork, l80lr for asphalt roofing, 24.30/o for gypsum products and 10.30/o for cement.

In contrast, prices of all commodities listed on the government's Wholesale Price Index increased only 8.lo/o from August

1977 to August 1978.

This soaring inflation rate, Gravlee said, is particularly disturbing because building products account for about 3006 of today's $57,000 median priced home, which is already way beyond the reach of millions of potential buyers.

Gravlee noted that lumber and wood products account for about l5oft of the sales price of a new home.

While demand for lumber has been rising steadily, the actual cut of softwood lumber from the national forests declined from ll.5 billion board feet in 1975 when housing starts barely reached one million units to 10.7 billion board feet in 1977 when housing starts hit two million units.

This shortfall has forced some mills to close in the West where producers depend primarily on federal timber. he added. Moreover. it has increased our timber imports from Canada and inflated the price of lumber because of "the market's belief that federal timber policies are resulting in the unncessary rationing of our public timber."