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From: "Nicholas Musolino Jr." <subject@xxxxxxxxxxxx>
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Date: Thu, 21 Sep 1995 15:20:47 -0400
I contest the comments about 'market forces.' While it is true that there
are a surplus of architects in the available 'amrket,' which might be
economically assesed or projected, the number of architects 'needed' is a
cultural issue. Need it be pointed out again that architects have a very
small role in the construction industry (now a chicken-egg issue: too
expensive to hire an architect, but so little work that they need to
increase fees). A more significant issue is one that many archtiecural
theorticians are unwilling or unable to asses: the role of real estate
holdings appreciating. The 7-10% surcharge for hiring an architect
(provided that budget is constant; as much as the argument that an
architect can hold costs at the middle and high end so as not have the fee
increase the overall costs is plausible, it is less so at the low end) will
have a significant impact on a 20 year mortgage, one that probably won't be
evidenced in the long term value of the house. Therefore, the house, which
is the strongest source of wealth generation for everyone making less than
$60-100K a year, will be attractive based not on any archtiectural measure,
but that of market evaluation techniques (size, location, number of
bedrooms, etc.; for a while, in the Cleveland area, to get a home loan over
a certain threshhold you had to incude some perceived high end do-dad, like
a whirlpool bath, etc.), except for those rich enough to depend on other
sources of income for wealth (and, oddly enough, these are the people
hiring architects). So while it may be true that there are too many
architects looking for work in the present market, the construction of that
market is a cultural and political decision. The republicans who are
looking to the flat tax as manna, may do some very interesting things to
the housing market when the eliminate the mortage interest deduction
(though probably not much for architects; the costs of houses will be
driven down even further, and houses will become as disposable as autos.
Who wants to start a designer prefab home business?)
nic musolino
subject@xxxxxxxxxxxx