Construction in 1924

Building booms come less often than booms in other industries, but when they do they are apt to last longer. The prospects for building in 1924, estimated by the Dow Service, are $600,000,000 for New York City and $6,000,000,000 for the nation--both of them new high records.

In 1922 New York construction aggregated $523,000,000; this year would have probably seen a total of $560,000,000 by this time had it not been for the "buyers' strike" from May to August. Next year's construction will include work deferred from this year, plus what another year would normally develop.

Despite the steady annual increase in construction, however, it is unlikely that material or labor costs will be quite so high as in the Spring of this year. Whereas in 1920-1923 American building material manufacturers were unprepared for the excessive demands placed upon them, another year will see their plant capacities and financial resources greatly increased. Demand will not be less, but supply greater. Prices already are too low to be toppled by extensive foreign competition.

The necessity for rebuilding Japanese cities has tended to impart strength to material prices, and to stave off prospects for lower prices here for another year. In consequence, American builders are now going ahead again, instead of waiting for lower costs. Even the conservative investor is not so inclined to hesitate over present expensive construction, after realizing the prospective Japanese demand for building materials.