The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-01-14
CHEAPER TO BUILD
THAN TO PAY RENT
Those Who Have Been Putting Off Building Homes
Should do It Now for Real Estate Will Never
Be Cheaper, Cost of Building Never Lower and
# L 81 4
Rents Are Advancing.

vw p HILE the erection Of struc-
IS ~ lures for people to live in
was the great feature Of the
building record of 1905, it is true that
the actual sales of home sites were not
as large AS the real estate men had
hoped at the beginning of the season.
The market didn It slump, but it didn t
get right up and hump itself as indi-
cations seemed to warrant. That there
was great influx Of new residents dur
ing the year and that Minneapolis never
before so thoroly occupied all it's living
facilities none will deny, but if all con-
ditions were well understood. the great
BODYBUILDING record of 1905 would
have been much larger. -..-.....
Rental Demand Brisk. -s5
In the first place, the rental demand
Is always kept brisk by new arrivals
in the city and decent houses and flats
are always we'll filed. People in posi-
tions rendering permanent residence
doubtful and the new arrivals who wish
to "learn the town. before building
are the logical leaders in the renting
class. There is no reason why, with wit!
dents Of Minneapolis should not build
more homes; in fact, in many aspects
such an investment becomes almost an
imperative duty. ~ -.
Since the financial stringency of the
last decade, there have doubtless been
many who own residence lots or have
considered purchasing, who have been
they could build a home for less money.
In the last six years the cost Of build
ing has increased materially. and so
these people have gone on paying rent.
I waiting for an era of cheaper construc-
tion. AS a matter Of fact, however,
! three features of the present situation
s make the slogan "Do it now' most
pertinent for the hesitant homebuilder
.First-Rea1 estate, now comparatively
. cheap, will, in all human probability,
never be cheaper.
Second-The cost Of building is SUBJ
Sect to natural conditions which initiate
against any decrease.
Third-Rents have advanced to an
equal or greater degree than the cost
! Of building.
: Must Pay Advanced Price.
! This means that the persons who are
] paying rent while waiting for lower
( cost of building are mourning the al
: most certain necessity Of paying an
!, advanced price for a residence site and
That in the meantime they are paying
N rents proportionately more than the
increase in building expense. In other
words, the average man who rents his
! home can better afford to build at once,
paying present prices for building and
teal estate, than to 90 on paying rent.
ALL this is the inevitable conclusion
liter hearing the matter discussed by
teal estate men who have watched local
conditions for years. They do not fear
my reaction against renting properties,
tnTf nh m
Prices Are Low.
"Those contemplating building
homes,' said Walter L. Badger, "ought
% realize that the prices. Of our resi-
Hence lots are far below. their actual
Falue, and in comparing our real estate
values with those. Of competitive cities,
We are convinced that the above fact
IS true. There was never better time
;han the present, as the cost for erect
ing home, which at first sight may
Ieem high, is abnornlally low consider.
ing the circumstances. Consider, fol
example, the cost at the present time
compared with the 'SOs. Material is
bound to be still higher, and citizens
who held off buying q lot fifteen years
Ego, thinking; perhaps that prices WOULD
Iame comparative position as they were
then, if they persist in following the
lame policy. The trouble with Mime
lpolis people who are contemplating
/ Erecting homes is that they do not re
Alize that Minneapolis will soon be
! come one of the greatest cities in the
s west, and lots which they scorn to buy
Waiting to Build. +.
Frank Nickels, of Nickels & Smith
rave the following opinion:
1T is a fact that people having
/ money in the bank are waiting to build
thinking that property will be cheaper
Ir that the price Of material will e
down. Property in Minneapolis hal
reached its lowest ebb and is on tn.
hence Of this fact, there is good de
hand for vacant lots for speculatio,
IS well as building. It is true also tina
shere are hundreds of people who owl
vacant property and are DESTROYS t.
improve for home investment purpose
81 Ind have waited years for decrease il
value of labor and materials, but, il
ny Judgment, each year will show a
increase, especially in the cost of ma
Ierial. AS further incentive for hom
building at the present time, money ca,
be had at rates from per cent to
per cent, according to the characte
Ind location Of the improv erlents. I
Tan also be had as the building pre-
presses and paid on interest basis. TIL
average wage-earner can, at the presen
time, purchase lot suitable for hi
purposes at from 5000 to $500, and ca
krect thereon a house Of six rooms
linus modern conveniences, for $1,OO
10 $1,2O0.'' r. :
Time to Build Is Now.
L. B. Elwood said:
With the growth Of the city an
he healthy growth Of the northwest
md with the abnormally low prices pre-
railing for residence lots suitable fo
modest homes, it is apparent to anyon
hat the time TO build, so far as tn
lost of the lot is concerned, is at pres
mt. While it is generally known tina
pts on outlying business streets hav
increased in value, residence lots rang
ng from $500 to $500 are no highe
han they were fifteen years ago. Tha
condition, however, win not renal
rue much longer, and those who put O.
building, waiting for lower-priced lot
IRE not showing good Judgment. Th
anne is true with building material
specially lumber. It needs but littl
thought to convince anyone that ther
AN be little or no hcHe for lower price
that special commodity. This
equally true of the cost of skilled 1abo
There is no reason to expect decreas
the payment of skilled labor, neithe
LCuld we hope for q drop in prices.