(1) TOTAL UPKEEP MARKET

(A) UPKEEP EXPENDITURES ON RESIDENTIAL PROPERTIES. In 1962, upkeep on residential properties accounted for 44% of the total expenditures, while 56% was spent on improvements. In that year we spent more than $5 billion for upkeep or repair and maintenance of our homes. Of the $5 billion, $2.2 billion (over 43%) was spent on painting, while $1.3 billion was spent on various items from the repairing of switches, to caulking of doors, and to the repairing of swimming pools. Nearly $700 million was spent on plumbing items, such as repairing of clogged drains, cleaning septic tanks, replacing faucets, changing pipes, etc. Roofing repairs accounted for $333 million and included not only roof shingle replacements, but also caulking of leaky roofs, and repairs of gutters, downspouts and flashings. A total of $333 million was expended on heating and central air-conditioning, while $256 million was spent on floor repairs.

Painting. About 35% of all maintenance and repair painting jobs are done by homeowners themselves. Out of the remaining 65%, however, not all is sublet to contractors: 5% of the expenditure is actually paid to contractors for labor only, while another 5% is for partial supply of labor and materials. leaves little over 51% for professional people to do.

This

Plumbing. While about $2 out of $3 spent on painting is paid to the hired contractor, nearly 80 cents of every dollar is paid to the professional man in plumbing repairs and maintenance. Still, 16% of the people buy their own material and do the plumbing jobs themselves.

Roofing. About one-fifth of all work was done by the homeowners, without using outside help, and nearly 70% was done by professional roofers.

Heating and Air-Conditioning.

This is one field where only a small fraction of jobs is done by the homeowners: over 90% is directly subcontracted. Apparently this area is still considered out of bounds for an average do-ityourselfer.

About 60% is

Flooring. Here the expenditure resembles that of painting. given to professional floormen, and the rest is done by the "man around the house."

Other Jobs. Most of the work done by do-it-yourself methods is in this category: nearly 60 cents of every dollar spent. This, of course, is not unusual. Most of the odd maintenance jobs are done without professional help and constitute part of the accepted "pleasure" or "burden" of the home ownership --depending on the individual philosophical outlook.

TABLE 2

PERCENTAGE EXPENDITURE OF HOMEOWNERS FOR UPKEEP. 1962, BY TYPE OF WORK

How Much of the Upkeep Dollar For the Professional? Assuming the proportion spent on owner-occupied properties with 1 - 4 housing units is the same as for all housing units (there is no breakdown for properties with 4 units and over), we can say that roughly $3.2 billion dollars or 63% was paid in 1962 to professionals for maintenance and repairs on all residential properties. Table 3 on the next page will give the actual estimated breakdown.

(B) UPKEEP EXPENDITURES ON NONRESIDENTIAL PROPERTIES. We have estimated about $5 billion dollars of expenditures for upkeep on nonresidential buildings in 1962. In addition, upkeep on other properties can be estimated at $7.8 billion* Of course, not all of these expenditures are made on structures and not all are done by contract. Using the experience of the Inter-industry Study done by the Department of Labor, we estimate that about 41% of the $5 billion dollars spent on nonresidential buildings was paid for jobs contracted out. Out of the $7.8 billion dollars spent on farm buildings, public utilities, military, conservation and development, and others, about 15% ($1.170 billion) was spent on structures. Of this amount, about 25% ($295 million) was done by contractors. Besides that, about $956,500,000 was spent on upkeep on other than structures--done by contract. We can sum this up in this way (see Appendix for details):

If we then add up all of the expenditures for upkeep, there was a total of $6.9 billion dollars for the professional in 1962. This is the way we can

break it down:

TABLE 5

ESTIMATED EXPENDITURES FOR UPKEEP OF RESIDENTIAL & NONRESIDENTIAL PROPERTIES
DONE BY CONTRACT 1962

Out of the total expenditures for upkeep, about 21% is sublet on residential properties, 19% is sublet on nonresidential properties, 57% is done by do-it-yourself methods, and 3% is done with nonpaid labor. The $6.5 billion dollar subcontracted work represents 32.4% of all expenditures: this is the maintenance and repair market for the professional.

(II) TOTAL IMPROVEMENT MARKET

(A) IMPROVEMENT EXPENDITURES ON RESIDENTIAL PROPERTIES. Expenditures for residential improvements amounted to $6.3 billion dollars in 1962. Improvement data is divided into three categories: (1) additions; (2) alterations; and (3) replacements. Additions refer to an actual enlargement of the structure, such as the addition of a wing, room, garage, laying of walks, fences, swimming pool, tennis courts, etc. Alterations refer to changes ranging from a complete remodeling to such small items as installing new electric service outlets, and all are divided into: (a) heating and central air-conditioning; (b) plumbing; (c) remodeling; and (d) others. They may include such items as: installation of new furnaces, bathtubs, running water, creation of new rooms, kitchen remodeling, installation of storm doors and windows, floor tiles, etc. Replacements include items which could not be classified as innovations, such water heaters, siding, roofs, all water pipes, complete walks or driveways,

as:
etc.

The largest single expenditure in 1962 was for the additions and alterations of the property on the outside of residential structures: $964 million dollars, or 15% of the total. The smallest expenditure was for roofing: $494 million dollars, or 8% of the total, followed by heating (9%), plumbing (10%), remodeling (11%), additions to structures (14%), and others--not classified (33%).

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properties of 1 - 4 housing units did nearly one-fourth of all outside improvements themselves. About 57% was subcontracted for materials and labor, 5% for labor only, and 9% for partial labor.

Additions to Structures. There was a slight variation between work sublet on additions to structures and that sublet on additions to outsides: homeowners did slightly less work directly on structures themselves, but at the same time they subcontracted less for labor and materials, using more partial help on structure improvements.

Remodeling. This is the field where homeowners did most of their own work and did not engage the services of professionals. Only 48% was sublet for labor and materials, while 25% of all work was done without outside help.

Plumbing Roofing, Heating and Air-Conditioning. The proportion of jobs subcontracted for labor and materials was high: from 60% for plumbing, to 88% for heating and air-conditioning. The least do-it-yourself jobs were in improving heating and air-conditioning systems.