Before the war he planned for this
At the end of 1918 the average cost of all building materials was up to 175 per cent over that of 1913, but by the first quarter of 1920 they had gotten up to 300 per cent increase over 1913 prices. Lumber had gone up 373 per cent. Labor had also risen to 200 per cent.
Mr. Average Citizen found that the home he had been saving his money to build had flown from his hand, like a bird. The sketches and plans he had prepared for a nice little $10,000 home now represented an investment of $20,000 or more. In fact, if he expected to build at all, he had to be reconciled to a small house of six or seven rooms, which would cost him not less than $10,000 or more, or as much as the large house which he had planned originally to build.
Then what happened? Mr. Average Citizen did not build. The confidently predicted building boom which the building material manufacturers had looked for did not materialize. Prices were too high, and the public could not be made to believe that they would not come down, and the public was right.
Now his plans have shrunk to this
The light began to break as well as the prices, and we find the cost of building materials dropping suddenly. By the end of 1920 they had reached the 200 mark. By March, 1922, they had reached the 155 level, and are still going down with slight fluctuation.
But during all of this time we heard all kinds of theories as to how the problem should be met. Some architects went so far as to predict that people could no longer build individual houses for themselves; that the day of the small house was over. They claimed that the only solution was in the construction of group houses. Such groups would eliminate much of the expensive street paving as ordinarily required, and cut to a minimum the water supply-lines and sewage systems. Semi-detached houses in groups were capable of saving the cost on one outside wall, one chimney, one set of plumbing pipes for each house in the group. The heating could also be reduced to a community basis, and the land so distributed that the best air and light could be had with the minimum waste.
Many architects conscientiously tried to reduce the cost of construction of the small house by inventing cheaper ways and methods of building. However, the estimates came in just as high, because the average small contractor who builds the small house was afraid of innovations, since there was too great an element of risk, and he was conservative. To meet this difficulty some architects attached to their office organization construction departments by means of which they were able to build according to their economical plans and secure the advantage of the saving in cost. This was held by many to be unprofessional. Other architects secured lower bids by having a written agreement with the various contractors who were competing that, if they received the contract, the owner would be responsible for and pay for any increase in labor or material prices which might take place during the period of erection. Likewise the contractor agreed to give the owner the benefit of any reduction in prices which might take place during the time of erection. This simple understanding seemed to relieve the contractor of nervousness, and his bids were often lower. Still other architects claimed that the cost of construction could only be reduced by standardizing all of the parts. Certain mills had secured high-class talent to design stock doors, cornices, windows, columns, and the like, and the results were very satisfactory, both artistically and economically.