COST OF HOUSE BUILDING

Press, Volume LXXXII, Issue 24895, 7 June 1946, Page 2

COST OF HOUSE BUILDING

FIGURES FOR 20 YEARS

SUBSTANTIAL RISE SINCE 1939

' Official figures suggest that home builders are now paying 25 per cent, more than before the war for houses now restricted in size by building regulations and limited in fittings by the short-supplied markets. Without making allowance for restrictions by regulations, which would add to the relative cost, homes are costing on an average nearly 35 per cent, more than in 1928, when prices were considered high. In the last three years Government publications have suspended publication of figures showing comparative dwelling-construction costs. “Higher construction costs are disclosed in the additional housing units taken over during the year,” reported the housing branch of the State Advances Corporation for the year ended March 31, 1945, and the corporation’s accounts showed that the average loan granted for home building was £1173. In January, 1945, 59 permits granted in Christchurch had an average value of £ 1229, while the 62 permits issued last January were of an average value of £1390. v The relative costs before and after the 1914-18 war cannot be ascertained from official documents, as it was not till about 1925 that building statistics were collected annually all over the Dominion. The average value of private dwellings erected was:—£72s in 1921-22, £7BB in 1922-23, £Bll in 192324, £847 in 1925, £B6l in 1926, and £855 in 1927, from when values declined, rapidly in 1932, bedrock being reached in 1933, since when values rose. In 1938 and 1939 values were fairly constant, except for a pronounced increase in the cost of fourroomed dwellings in Christchurch. Over many years building costa were recorded officially as being definitely lower than in the other centres.

The minimum weekly wage rates in the building and construction industry have more than doubled since 1914. Index numbers in the Abstract of Statistics show that the minimum wages have increased by 22.2 per cent, since 1939 and by 8 per cent, since 1944. The main factor in building costs is materials, which since 1926-30 have increased in price by 94 per cent., according to figures in the Statistical Summary of the Reserve Bank of New Zealand. Since 1939 the rise in wholesale prices of producers’ materials in building and construction is shown as 61.5 per cent., the index numbers being recorded as 1206 for 1939 and 1948 for October, 1945. Commenting on the average value figures for the Dominion in 1937, the Government Statistician said: “The marked decline was due in a large measure to decereased building costs, but the figures suggest a move towards a cheaper type of building.” Average Costs Compared The absence of any details of footage makes only a general assumption of relative costs possible. The average price for each room built in Christchurch for various years has been as follows:

Since 1941, “when changes of so drastic a nature invalidate comparisons [in building permit figures],” to quote the Government Statistician, the minimum weekly wages in the building industry have increased by 18 per cent., while the wholesale prices of builders’ materials have advanced by 24.9 per cent. These added costs are taken into consideration when prices are given for building homes.

Sixrooms rooms rooms 4 £ 1926-27 . 186 197 233 1928-29 . 173 178 181 1929-30 . 173 176 182 1930-31 . 166 167 195 1932-33 . . 133 133 160 1933-34 * . 128 128 143 1934-3S . 126 135 145 1935-38 . 138 143 160 1938-37 . 156 152 173 1937-38 . 194 188 187 1938-39 . 223 208 204 1939-40 . 232 212 266 1940-41 . 230 212 255 Bathrooms, pantries and kitchenettes are not counted is rooms. The average cost of houses in Christchurch has been •M> Sixroofns rooms rooms p 1926-27 . 744 985 1398 1928-29 . 692 890 1088 1929-30 . 692 880 1092 1930-31 . 664 835 1170 1932-33 . 532 665 960 1933-34 . 512 640 858 1934-35 . 566 703 868 1935-36 <>'592 734 1050 1936-37 . C42 750 1029 1937-38 . 776 876 1116 1938-39 . 820 960 1251 1939-40 . 924 997 1154 1940-41 . .919 1059 1275