The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-30
The YEAR IN REAL ESTATE.
SURPASSED IN VOLUME or BUSI-
NESS ONLY m 1905.


The Activity During the First Han
OF the Twelyemonth Unprecedented.
hut Fell or When BuIIdtng Material
Prices Only Tenen,ents Hurt.
The past year has been one Of notable
activity in the real estate market. During
the first half OF the twelvemonth the
volume Of buying and building was un-
p~redecented. However, a very considera-
bic falling Oh took place during the last
six months. The business transacted in
the course Of the whole year was smaller
than that Of 1906, hut with this exception
it is the largest In the history Of the city.
The year has, indeed, been prosperous
TO the generality of realty owners and opera
tors. Nevertheless, il marks the first re-
c~essious in the tide Of speculation and in
vestment that had previously been rising
without interruption for a period OF sew
eral years. The high water mark was
reached last June. About tina time two
important adverse influences began to
make themselves strongly felt. The build
ing industry was upset by a fall Of 50 cents
in the cost of brick, which Immediately
caused the principal lending institutions
to curtail loans in those neighborhoods
where construction work had been most
active.
The effect was greatest in the tenement
districts, TO which, indeed, il has for the
most part been confined. There had been
a tremendous speculation in old law tene-
ments based to a considerable ex tent on q
preceding advance in the cost of building
materials. Last spring, for instance, il
would have been impossible 10 duplicate
existing tenements at anything like their
original cost. The fall in the price Of brick
at once reduced their selling value by any
where from a thousand TO several thousand
dollars, the amount depending of course
upon the size and quality of the house.
The slump In values was even greater In
he case Of new law tenements, which are
almost invariably built on sites comprising
more h one lot. Thus, while the builder
Of a typical ak story afty foot tenement
on say Warrington Heights could readily
obtain a loan Of s45 200 on his property last
spring he found himself obliged a few
months later to acoept from SIS, 600 to
$4,000.
The influence of the fall in brick prices
was especially disastrous in the tenement
neighborhoods BECAUSE speculative building
had for some time been more active there
than elsewhere. Tenement house rents had
already begun to weaken under the strain
OF overbuilding and the grsat tenement
house boom would no doubt have culmi-
mated in any event before long.
Meanwhile other materials than brick re-
NAMED virtually at their old level. The
production OF frame houses In the OUTLYING
boroughs continued without abatement,
while the erection OF brick dwellings there
was perhaps stimu lated rather than discour-
aged by the fall in the cost Of brick con-
struction. The beginning Of the year
found q scarcity OF one and two family
houses n an oversupply Of panements,
with the result that In spite Of the monetary
stringency the production Of the former
class Of housing has continued on q large
scale throughout the twelvemonth.
How long the building Of small dwellings
will continue is a matter Of doubt even
mong those engaged in this form Of con-
struction. Many think IL will be the prin-
cipel feature Of the market 4 spring.
II 10 Of course Intimately connected with
the tremendous lot movement which has
prevailed this year in the suburbs. That
movement may possibly have lost some
Roadway In the further parts Of Long Island
but II is generally expected TO gather force,
particularly In The Bronx and in New
Jersey.
Turning to the business section Of the
city we find that fewer lofts and workshops
have been erected In Manhattan during
the last year than were erected In 1905.
The process of decentralization that has
act In so strongly as regards residence
housing 10 also apparently beginning In
the matter OF business housing.
Tbs manufacturing industries are follow
ing b working population into the outly-
ing borou9hs. These boroughs are now
getting q relatively bigger share Of the city's
incrcase Of people and Of industry than they
did before the present era Of transportation
hAhfArUnAnfA and A~fnDtDuA TkA
ton al ONCE buildings in Manhattan was,
however. far greater in the last year than
it had ever been before. While that bor-
ough 10 becoming less OF Q manufacturing
centre Il 10 growing all the more rapidly
as a centre Tor the executive control Of
industry Of ell kinds.
The midtown shopping district, like the
downtown Office building district, was the
seat OF unusual activity In building.
Indeed, trading in mercantile property Ia
Just now a conspicuous feature OF the mar
ket. IL il apparently confined to M par
~ticular neighborhood, being quite as general
In character as was the recent dealing in
principal Business thoroussisSs. in ali the
boroughs is in excellent demand.
The activity IL no doubt largely specu-
lative, for II Is especially noteworthy In
transition localities, localities that are re-
Ceiving or that are likely soon to receive
the overflow from older business districts.
In Harlem, for instance, there Ia a good
deal Of buying not only in i2sth street, but
in Lenox avenue near the f2Sth street sub
way station, where old private dwellings
are being altered into stores. The same
process is apparently going on all over
Manhattan on the borders Of established
wholesale and retail sections.
However, while the dealing IN more or
less speculative It ia undoubtedly founded
on q substantial investment movement.
Trade and industry are enjoying unpfec-
edented prosperity, old business houses
are seeking larger ~ rters and new ones
are coming into existence, with the result
that everywhere the commercial districts
are rapidly expanding.
A statistical summary and comparison
Of the real estate activity in the principal
borouGhs- 10 contained in these tables:
NUABER or DBkDs RECORDED.
1904. 1908. 1903.
MAnhataan f0.O0O 1000 1000
pIon1. o. ....s.s.s.s.sss-... ~ AOO lGWO
bfoOklyn Sl,UU 1rVW WYNN