Dodge Corp. Forecost Sees Drop in 196o^ Housing But Still Huge Moteriols Xlorket

A decline in.housing may offset gains in other major construction categories n-ext year and-produce a slight-drop in total construction contracts in 1960, according to the annual outlook statement by F. W. Dodge Corporation. The downturn lvould be the first since the end of World War II, the Dodge analysis indicated, but it would be small, amounting to a drop of about one percent below the record-breaking 1959 total.

The outlook statement, prepared by Dodge economist George Cline Smith, indicates that non-farm housing starts in 196/.l- should total about 1,250,000 units. In terms of contracts, they will be down about I0/o in physical volume (as

Clty, C of G Aid Housing

The city of Hartford, Conn. and the Chamber of Commerce have played a cooperative role in aiding a nonprofit group to erect a garden-apartment project to house families relocated by slum-clearance programs.

measured by floor area) and 8/o in dollars. Because housing is the largest single construction category, this decline will counterbalance gains expected in uon-residential building zrnd heavy engineering contracts.

Tl-re report emphasizecl that the 1960 total will still be huge, with contracts amounting to $36,040,000,000, the second highest figure on record; and it pointecl out that practically every construction category other than housing should show gains over 1959. Iu terms of physical volume, Iloor area is also expected to increase 7o/o, with the larger' irrdiviclual categories as follows : manufacturing buildings, up 2O/o; commercial buildings, up 6%; schools, sp 2% ; lrospitals, up 3%; religious buildings, up 5%; social ancl recreational buildings, tp 7%, and public buildings, up 3%.

Heavy engineering contracts in 1960 are forecast to total $7.8 billion, a gain of 2/o over the estimated 1959 level. No floor area is reported in this category of construction since floor area is not a measure for such major engineering projects as highways and dams.

Total private and public housing starts are expected tcr decline, primarily as a result of financing difficulties, to 1.250.000 on the current Census Bureau basis of measurenrent. This would represent a drop of l0/o from au estirnatecl 1959 level of 1,390,000 units. The report states that "there seems to be, at this point, little likelihood of legislative action which might further stimulate homebuilding in 1960, but a sharp decline would greatly increase pressure for sucl-r action, and it is not beyond the realm of possibility."

llesidential floor area is also estimated to clrop l)/a in 1960 but cost factors are expectecl to make the dollar decline slightly less, or 8/". As a result, total dollar volume of resiclential building contracts next year is forecast at $15.9 billion.

Despite the slight decline anticipated in total construction contracts next year, the report says that "the market for construction materials and services in 1960 will be among the very largest in history and the forerunner of ever more prosperous years ahead."

Youth Ronch in Hesperio

Groundbreaking ceremonies have been held Greater Los Angeles Youth for Christ Teen Ranch peria. When completed in July 1961, facilities will administration building. chaoel. dinins hall. clut idministration chapel, dininghall, club recreation facilities and swimming pool. It will cost timated $535.000.

for the in Hesinclude house, an es-

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