THE HOUSING SHORTAGE

Press, Volume LXXIV, Issue 22304, 19 January 1938, Page 16

THE HOUSING SHORTAGE

♦ INCREASED COST OF BUILDING ARCHITECTS’ VIEWPOINT An editorial review of housing in the Journal of the New Zealand Institute of Architects does not make cheerful reading for the general public. “Unless something can be done the cost of building will mount up to new high levels—to a level entirely disproportionate to the cost of living,” the writer states. “It is a fact that rises in costs of building since 1914 have been higher proportionately than rises in the prices of commodities. This is reflected in high rents and housing shortages. . , “Looking at this question of building progess from the architect’s viewpoint, it is very apparent that for the sum expended very mediocre results are obtainable in the way of quality. Comparing costs with other countries, it is notable not only that a far larger house can be built for a given sum outside New Zealand, but that the quality of material and workmanship is of a much higher order. This comparison persists in forcing home the discrepancy, even though we may make allowance for the difference in the value of the pound. “New Zealand is a relatively small country and its population is decentralised. Consequently the question of competition in prices is less keen than in a larger country or one with more centralised population. When any measure of restriction or control is instituted, organisation for protection against restrictive measure develops, and so tends to lessen the effect of the natural tendencies of competition in price values. It is more usually the supply which is restricted, for the demand is, for the most part, governed by natural economic laws. But some hard thinking will be necessary before any lead as to a solution of the problem can be found or a rationalisation of building be attempted. “Meanwhile, we suffer as a community from the rise and fall of ebsts of a building to an extent which is disproportionate to other fluctuations in market values. This might not be so important if a building were a mere chattel—or a commodity—which is disposed of at a loss or otherwise. But on buildings depend so much of the economic structure of existence. A building is considered in the valuation of property, and though its value from time to time may rise or fall 50 per cent, during its period of usefulness a great deal of our investment of money is in buildings. To keep building costs at a relatively normal value would therefore be of great assistance to the community in the stabilisation of values generally."