Survey Shows 1938 Will be Better Buildins Year Than 1937

Washington, April 5*An appraisal of the home building cost factors evident in the first quarter of the year indicates that 1938 will be superior to both 1936 and 1937 as a period in which to build a new home.

The materials for a new home cost less now than at any time during 1937, says the National Lumber Manufacturers Association, which has just completed a survey of probable home costs for the rest of this year. Reductions in financing costs and lower land rates give this year an edge over 1936.

At the depth of the depression in 1932 material for the average home could be bought for less money than today. However, because of the extreme low level of national income the purchase of building material in that year would have taken a larger portion of the average income than the same material at the slightly higher prices in 1938.

In 1932 the return from the sale of a bushel of wheat would have purchased 9 board feet of lumber. Today the sale of the same bushel of wheat will purchase 24 board feet of lumber. This is true all along the line in comparing the relationship of building material prices to other commodities.

Taking the year 1926 as normal and most logical to compare with 1938, the Association stated that building material is 63% less this year than in 1926. The U. S. Bureau of Labor Statistics reports that the composite cttrve of all btrilding material stood at approximately 937/o in November 1937, and has been reduced considerably since that time.

Real estate operators can point out lots that rvere solcl in 1926 lor $1500 which can be purchased today for $500 to $600. As a general average building sites are from $300 to $1500 less than in 1926.

Under new methods of home financing the buyer obtains full ownership and saves 85% of old time financing costs. :f66l2rr. if yorr borrow $5.000 you pay $37.13 monthly with both principal and interest becoming less each payment. In 2O years the total payments are $8911.4; the debt is paid and you own your home. Under older systems of unamortized mortgages, when you borrowed $5,000 you did not reduce the principal but let the debt run. At the end of 20 years you had paid $6,500 interest and still owed $5,000. The cost to buy was $1 1,500, plus renewable costs every five years. Today you save $2,588.80.

As for building plans, those of 1938 contain added values that reduce building costs, effect better construction and appearance for a cost identical to that of. 1926. Architects fees, likewise are no higher than in 1926.

The price of lumber itself has dropped. Today $814.32 will buy the same quantity of lumber that $828.39 purchased in 1926.

Carpenter labor is only 18.73/o of the total cost of a typical frame dwelling, says the American Lumberman. The American Builder "Building Outlook Letter" of December 12, 1937, says : "An averag'e of 40O hours of carpenter labor is required for the moderate priced home of today." Figuring at the highest prevailing union scale of $1.62Yr, and amortizing this wage over aN-year period, the anntral cost will be $32.50 or $2.70 per month, or 62Yz cents a lveek.

Labor in addition accomplishes more u'ork toclav per hour because of better tools, plans, pre-fabrication, etc. Paint is of a rnuch higher quality and lasts longer. This results in economy due to less repainting. Therefore, labor hours on the 1938 home are so much shorter that they far more ofiset the slight local rvase increases since 1926. Credit 1938 with labor savings plus greatly increased values in the finished job.

Price of home conveniences have dropped since 1926. Heating and plumbing facilities are 5 to 4O% undet prices of that period, electric refrigerators ate 367n less, oil burn"-s 2O% cheaper.

FRIDAY, MAY 6