Story at a Glance

Stronger demand and improved market conditions

U.S. and world recession

expansion of economic activity at a relatively sluggish rate thru '76.

starts are symptoms of fluctuations in the economy. The major difference today compared with the past lies in the fact that previous changes in the rate of housing production have resulted. for the most part, from fluctuations in interest rates.

While interest rates will continue to have bearing on housing starts, we believe that inflationary costs and increased governmental regulation in the environmental and energy arenas will play equal roles in bringing back housing starts and sustaining strong housing production.

GEORGE K. ELIADES Exec. vice president Imported Hardwood Products Assn.

The Energt Cnsls is even more serious than a reduction in housing starts. Because energy is not an inexhaustible resource, efforts are underway to conserve energy by requiring tighter, more dense, better insulated and more comprehensive communities. Fewer windows will be used and thermal panes will replace regular glass. The immediate seriousness of the energy problem mandates a complete analysis of energy consumption and a re-thinking of America's lifestyle.

Efforts to Improve The Environment after years of neglect through massive federal regulation and public attitudes also contribute to making new housing merely a dream for the vast majority of Americans. Fortunately, in coming to grips with environ' mental problems, there are some indi cations that Congress and the environmentally-minded public now realize that the problems are not so simple as to be resolved in one fell swoop.

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