What's Ahead For Building In 1949

Bv H. R. Northup, Executive Vice President National Retail Lumber Dealers Association

| -ct's scc horv far along thc roacl we Are.

First, to build homes for thc American people we r.reecl aclecluate, balanced inventories of ali materials going into a home. Second, u.e certainly need to utilize all the methods and means of reducirrg construction costs at rvhatever level they may be. Third, it has been necessary to remove some of the inflationary demands upon the industry for homes. And, fourth, rve need financing rvith lorv enough down paynrents to permit the average man to buy and own a home of his orvn. Certainly it is unrealistic to talk about the industry's ability to solve America's home problems and expect the average family breadrvinner to make a dorvnpa)'ment of greater than 20 per cent.

I-atcst developmcnt in this field has been the Photoplav Industry-Engineered Home, rvhich is nothing more than a variation of the basic Industry Engineered Home, and rvhich is being given away free to the winner o{ a contest sponsored by the Photoplay Magazine. When this home is presented to the winner in June, the national spotlight will again be focused on lolv-cost home construction ancl the Industry Engineered Hon-re Program.

Such publicity cannot help but further the acceptance of this t1'pe of building, and give added impetus to the buildir-rg of lon'-cost homes.

Projected results of a nationwide survey of lumber and building material dealers indicates that approximately 1,057,000 houses rvere built in this country last year. This report appears to be accurate for independent government surveys coincide closely with these figures.

H. B. Noilhup

No'lr', hon. {ar have \\'e gone along this road?

Rcports receir.ecl in my office from all over the country indicate that inventories are at normal or higher. At present production rates, lumber appears to be in adequate supply; insulating board is adequate at a steady price; gypsum board supply is adequate; millwork is adequate; cement is adequate in most sections; and plumbing, heating and electrical equipment are in constantly improving supply. The materials for another big homebuilding year are at hand. But the same areas report, 'ivithout variatior.r, that financing is tight and only readily available at 5 per cent. In the Nlichvest they even reported that lending institutions are cutting to 60 per cent of value.

\\,'e in the retail lumber and building rnaterial industry, rvho builcl a large proportion of the homes in this Nation have joined har.rds rvith other segments of the building industry to promote u'ays and means of building better homes at lou'er costs. The most outstanding result of this coopcration has been the Industry lllngineered Homes Program.

This program 1\'as set up to educate builders, contractors ar-rd the lay-public to the principles of engineering the construction of small, lou'-cost homes so as to achieve the maximum qualitv for the lou,est cost. Naturally it has taken some time to reach out to the grass roots and gairt acceptance for these principles, but the movement has now taken hold and Industry Engineered Homes are being built today in all sections of the country.

The Small Homes Council has conducted intensive timemethod research into the Industry Engineered Home method of building and has confirmed the fact that it does save time, materials and money in construction of small homes.

Although combined government agency reports are not usualll' given publicity, published in conjunction, government estimates combining urban and farm homebuilding activities for last year total about 1,080,000 houses. The Bureau of Labor Statistics sets urban homebuilding for last year at 928,000. Department of Agriculture reports that in 1947 farm building reached 160,000; and there is no reason to believe that 1948 farm building fell belou' this figure. Farm building construction averages approximately 110,000 a year.

During the first quarter of this year we have again been building homes at an accelerated rate. Preliminary estimates set the total construction for the first quarter at 158,000-somewl-rat lower than the first quarter Qgirre of 180,000 in 1948. However, there is every reason toi believe that the 1949 figure will be adjusted upwards before the final official figure is released. Building for the past three months has been largely individual houses, rvith a noticeable slackening of speculative building.

Many of the proponents of the public housing legislation l.rave based their arguments upon the statement that the private building industry is not constructing enougl-r homes at lorv cost for the American people. Again I rvould like to quote from the nationwide survey in pointing out the fallacies of this statement.

Reports clearly indicate that the heaviest percentage of the hornes built fel1 within the lower brackets, frequently r.vell belorv the average community level. For example, 56/, of the houses reported sold for $7500 and under, rvith a further breakdou'n ol 2OVo for less than $5000. Home costs were reported as low as under $3000.

All of this is, of course, encouraging. It indicates as nothing else could that homes are being built, and that in some cases they are being built at low enough cost that the average American homeseeker can reasonably afford to buy them. But much remains to be done.

Our association has stated time and again that rvith adequate financing rve could build the homes the American people need. That statement is still true. The man rvho is