The Morning herald., 1875-09-06
REAL ESTATE AND RENTS.

New York has what is called noiseless
panic in real estate. What is meant by
this is the rapid shrinkage in the values Of
such property, as to force great deal of it
upon the market, where a, the current
prices it brings so little in approximation
to its real value that millions of dollars
have been lost. At one time, and but a
year ago, real estate brought fabulous sums.
This induced builders to enter largely into
the work, and the number of houses built
has been greatly in excess of the demand
With the tumble in prices came the panic,
and following closely upon that was the
foreclosure in mortgages, and the defeat and
ruiu of those who entered into real estate
as means of profitable investment. The
demand for houses in a place as large as
New York; where the population is in
creasing daily, the demand for houses of
course is great, but the supply far exceeds
it. New York is not the only place that
has had this experience but in Baltimore
and Philadelphia the real estate men have
had to travel the same thorny, rugged
path of disappointment and loss. In Bal
timore the building mania seems to have
taken particular hold upon the capitalists
who have gone into this kind of specula-
tion with recklessness, and the re-
suit now is precisely the same as in New
York. With Philadelphia the number Of
buildings erected has been very large, more
so than there was any demand for. But
it has bright anticipations in the Centen-
nial when the demand for buildings will be
large, and in fact many seem to think it
doubtful if the demand can be supplied. In
Wilmington the increase in building for
the last two or three years has been Of such
magnitude as to give some serious thought
as to its prudence. But we have increased
80 rapidly in population that the growth of
the city in buildings has subsided all
fears, and they have nearly all found oc.
cupants. This gives evidence that the
contractors here have occupied
their time and capital proftably, and that
capitalists who have given their aid and
influence in this direction have not gone
astray. But this should be lesson of
profit to them instead. of one of loss, as it
haonot proved to the people of New York
and Baltimore who have invested in this
way. The real estate market should be
Closely watched, and the number of build
ings erected measured by the demand. If
this is done then it will be impossible to
overstock the market, and large amounts
Of money saved. 1--WE do not need costly
structures. What we most need are those I
houses which can be built in IA strong, ser. +
viceable manner, and rented to the work. !
ing men at price that their wages will I
warrant. Such a class of houses as these {
are always in demand and rent RAPIDLY.
AT the presen. prices oflabor the working t
man cannot live very extravagantly, and +
there is no point in his domestic affairs /
where he needs to economize 20 much a, t
N the amount he pays for the rent of his d
iosse. It is this that makes the demand y
Tor cheap, serviceable houses, and it is such \
hat the contractors and builders should Il
put up, or the real estate market Of Will n
nington, in less than year, may be in Ii
he same condition as that of New York il n
o-day. a,