ing only the larger cities. The coverage of the sample has since been steadily extended until it now includes more than 2,000 cities of 1,000 population or over. Reporting cities have an aggregate population of approximately 61,000,000. In addition to this sample of cities, the Bureau receives building-permit reports covering the unincorporated areas of a small number of counties. An attempt is now being made to increase the sample to include some incorporated places of less than 1,000 population and a larger number of counties. The fact that no reports at all are available regarding construction on farms explains the restriction of the present estimates to nonfarm areas. New Dwellings, First 9 Months of 1940 Estimates based upon building permits indicate that approximately 391,000 new dwelling units were provided in nonfarm areas during the first 9 months of 1940. Despite a slow start in the first quarter, this total represents an increase of 13 percent over the number provided during the same period of last year. It is expected that residential-construction reports for the entire year of 1940 will show a larger number of new units than were provided in 1929, the last high year before the depression. It is also of interest to note that the percent of increase in residential construction over last year exceeds that shown in nonresidential building, as measured by either building permits issued or construction contracts awarded. Erection of 1- and 2-family dwellings seems to have grown at the expense of apartment units during the first 9 months of 1940. For the nonfarm area as a whole, the 1-family type, with 51,000 more new units, increased 19 percent over the corresponding period of 1939, and the 2-family type, 58 percent. Apartments, however, showed a decrease of 23 percent. Deducting the publicly financed units from the totals causes a major change only for the 2-family classification. For privately financed units alone, the 1- and 2-family types were 20 and 21 percent greater, respectively; the multifamily type, 21 percent smaller. Of the 391,000 new units in the first 9 months of 1940, 80 percent were 1-family, 6 percent, 2-family, and 14 percent, multifamily. More than half of the 2-family and nearly three-fourths of the apartment units were in cities of over 100,000 population. New York City alone accounted for 17,085 of the apartment units. The net gain in dwelling units during the first 9 months of 1940, as compared with the corresponding period of 1939, was not due to cities of any one size group. Except for cities of over 500,000 population, all urban population groups, and rural nonfarm as well, shared in the increase. In cities of 500,000 and over, the upward trends in 1- and 2-family units were not sufficient to offset the 12,000 drop in apartments. These trends are presented in table 1. TABLE 1.—New Dwelling Units in Nonfarm Areas, First 9 Months of 1939 and 1940, by Population Group and Type of Dwelling The second quarter is usually the period when the year peak in permits for new homes is reached. However, the third quarter of 1940 showed a contraseasonal rise in residential permits issued, with 150,000 new units estimated as compared with 142,000 in the second quarter. This represented an increase of 5 percent over the previous quarter and of 21 percent over the third quarter of 1939. TABLE 2.--New Dwelling Units in Nonfarm Areas, Third Quarter of 1939 and Second and Third Quarters of 1940, by Geographic Division and Type of Dwelling All types 1-family 2-family 1 Multifamily : SecGeographic division Third Second Third Third Second Third Third ond quar- quar- quar- quar- quar- quar- quarter ter ter ter ter quarter ter ter 1940 1940 1939 1940 1940 1939 1940 1940 All divisions.. New England. 7,871 5, 907 6,258 6, 354 5, 248 3,861 518 150, 102 142, 402 124, 265 123, 360 116, 112 96, 527 10, 543 8, 671 5, 342 16, 199 17, 619 22,396 246 232 999 913 1,929 611 6,039 791 2,723 252 2,012 354 1,937 1,090 5, 261 307 291 424 4, 241 304 3.526 824 839 389 189 1,057 1,783 991 472 1.325 281 1,795 1 Includes 1- and 2-family dwellings with stores. * Includes multifamily dwellings with stores. The South Atlantic and East North Central States made the largest gains during the third quarter, as compared with either the second quarter of 1940 or the third quarter of 1939. Four of the regional totals decreased from the second to the third quarter, all of the decreases being 8 percent or less. Compared with the corresponding period of 1939, the Middle Atlantic States showed a drop of 2,000 units, a number more than accounted for by the decrease in the apartment type. The geographic-division estimates of new dwelling units of each type are presented in table 2 for the second and third quarters of 1940 and the third quarter of 1939. New Housing, by Source of Funds Included in the estimates for the first 9 months of 1940 are accommodations for 39,150 families in publicly financed projects. These units comprised 10 percent of the total, approximately the same relation that was shown during the corresponding period of 1939. Of the 39,150 units, 18,373 were classified as 1-family, 8,074 as 2-family, and 12,703 as multifamily.2 Except for one project of 878 units, all of the publicly financed projects were financed with United States Housing Authority funds. The one exception was a section of the huge Navy Yard Houses Project in New York City. This was initiated by the city and aided with State funds. Defense-housing legislation did not have any appreciable effect on new housing started in the third quarter of 1940. Projects under USHA sponsorship and designated as being for defense purposes contained homes for 2,635 families. These units will revert to use. by low-income families after the national emergency passes. In addition to USHA defense projects there will be, beginning with the fourth quarter of 1940, many units in defense projects planned by the War and Navy Departments and the Public Buildings Administration. TABLE 3.-New Dwelling Units in Nonfarm Areas, First 9 Months of 1939 and 1940, by Population Group and Source of Funds 1 All except 878 units in 1940 and 240 in 1939 are USHA-sponsored. 1 According to the Bureau's definitions, row houses are classified as 1-family dwellings. Rows of flats arranged one over the other and rows of 2-story units directly over or under flats are included as 2-family units. The multifamily units are either of the apartment type or combinations of 3 or more 2-story units and flats, More than two-thirds of all publicly financed units in the first 9 months of both 1940 and 1939 were in cities of over 100,000 population. Of the privately financed units, less than one-third was within these same cities. The source of funds for new units in the first 9 months of 1940 can be seen in table 3 for each population group. The Pacific States led all divisions in total number of new privately financed units for the first 9 months of 1940. Other regions with more than 60,000 privately financed units were the East North Central and South Atlantic divisions. The Middle Atlantic States were next, despite a decrease from 1939 levels. The three leading divisions each made gains of more than 10,000 units as compared with the first 9 months of 1939. Publicly financed projects started during the third quarter of 1940 provided for 17,664 families, or 60 percent more than in the previous period. This increase was not paralleled by privately financed residential units, which gained only 1 percent. Compared with the third quarter of 1939, however, publicly financed units showed a small drop; privately financed homes, a 25-percent gain. The largest concentrations of USHA units during the third quarter were in the South Atlantic and East North Central States. Detroit and Philadelphia were the sites of the largest single projects, 2,150 and 1,324 units, respectively. No projects were started during this period in the West North Central and Pacific States, as shown in table 4. TABLE 4.-New Dwelling Units in Nonfarm Areas, Third Quarter of 1939 and Second and Third Quarters of 1940, by Geographic Division and Source of Funds Geographic division 1939 1940 Third Second Third Third Second Third Third Second Third 1940 1940 1940 1939 The valuation of the new dwelling units started in the first 9 months of 1940 is estimated at approximately $1,322,000,000. This total includes $1,203,000,000 for privately financed dwellings and $119,000,000 for public projects. The values given for privately financed units are in terms of permit valuations, which generally understate costs. The dollar volume for public projects is in terms of contract values, and is therefore equivalent to costs. The valuation of new dwellings in the East North Central States ($291,000,000), was largest for all geographic divisions. Other divisions with dollar volume of new units rising above $200,000,000 were the Middle Atlantic ($244,000,000), Pacific ($226,000,000), and South Atlantic ($222,000,000). Except for the Pacific States, which had little public housing, these same divisions led in valuations of both new privately and publicly financed units. Estimated permit valuations of privately financed units and contract awards on public projects are given for the first 9 months of 1940 in table 5. TABLE 5.-Permit Valuation of New Dwellings in Nonfarm Areas During First 9 Months of 1940, by Geographic Division and Source of Funds SUMMARY OF BUILDING CONSTRUCTION IN BUILDING-PERMIT reports for November were featured by a 235.1 percent increase in new nonresidential permit valuations over the corresponding month in 1939. Increases ranging from 21.4 percent in cities having a population of 1,000 and under 2,500 to 767.7 percent in cities with a population of 50,000 and under 100,000 were reported in all city-size groups. Other types of construction, however, declined over the year periods. Permit valuations of new residential construction were 4.0 percent lower than in November 1939 and additions, alterations, and repairs to existing structures declined 4.2 percent. As a result of the sizable increase in nonresidential building, all types of construction combined showed a gain of 56.0 percent. As compared with the preceding month, decreases were reported in all types of building construction. New nonresidential construction declined 13.6 percent from the high levels of October and new residential permit valuations fell 31.4 percent. Additions and alterations to existing structures were 23.7 percent less than in October. All types of construction combined showed a decrease of 22.1 percent. More detailed information by geographic division and individual cities is given in a separate pamphlet entitled "Building Construction, November 1940," copies of which will be furnished upon request. |