New-York tribune., 1919-12-28
, Bv William M. Greve
r,;ce- President Realty Associates

Wee President Redtfy Associates
nnr,nr the last year real estate OF
II kinds in this borough has begun to
IVA into its own. BY that | mean
~ instead of tenants living ut the
sxnense of landlords the situation is
ebeneed 70 the extent that most owners
snw are getting some fair return on
.ss;r Investments, and therefore there
j. q healthy buying and selling move
n,ont This movement is not confined
- anv one locality, but extends over
~. entire borough, all of which has
fnit decided Improvement. The most
;mpcrtant factor in the enlvenment OF
he real estate market is the diminish
rent Of the over-supply of houses and
the greatly increased demand for fa-
c;Iities. this condition being due to
the curtailment during the war of
,rscticallv all building operations and
nonplated sections of the country like
the city Of New York.
There is no doubt that the city IS
row uhderbuilt and the demand for
Communications. due 70 the increased
nonulation of the city. will increase
Trather than diminish owing TO the lack
al enough new buildings.
This demand has materially in
creased rents and the outlook for the
future. in my judgment, Will not be
;n,proved and rents will go higher, due
N the production costs of new build
inss of every kind. which increased
cost | believe to be 80 per cent in ex-
cess of pre-war figures. If this is a
fact builders, spectators and invest
ors will have 10 get at least so per cent
IN excess Of the rents that were
charged for the same accommodations
before the war when real estate was
70, productive Of fair returns.
Income Should Be Per Cent. Net
We have had rent investigation COM
nittees and there has been some profit
sering, but | believe that real estate
Is whole in this borough is not vet
showing q far return on the equities
BY that mean an owner Of real estate.
taking all the risks Of increased taxes.
increased insurance rates, increased
mortgage rates and the various eX-
penses incurred because of over zeal
Gus state departments. should receive
ct least TO 8 per cent net or his in
vestment, and / doubt whether the
majority are doing so to-day, on the
present scale OF rents. Figured on the
basis of the assessed valuation of an
apartment building in this borough,
It costs approximately per cent of
that valuation for taxes, repairs, in
surance, water rates, coal, janitors
salaries, etc. 1t can be readily figured
what the gross income from a building
must be to leave the owner or 9 per
cent
There have been built during the
year, and there are now being built. a
great number CT one and two family
houses. but few apartments. While
the number Of one and two family
houses is considerable, it is not and
will not be sufficient TO meet the de-
mand when it Is figured that sixteen
cne-faMiiy houses takes the place Of
but one tfty-foot four-story fat, such
as have been built in many parts OF
this borough.
Building $50 Homes
Realty Associates and it's subsidiaries
have sold approximately s7,000,O00
worth Of real estate, and have in course
Of construction 250 one and two family
houses. These are large operations for
any one concern and the difficulties in
obstruction to-day, such as getting
materials promptly, the disposition OF
labor generally to get as much in wage
and do as little work az possible, has
about brought us to the conclusion that
when these buildings are completed we
will not start anything new The utter
lack Of proper moral obligation on the
part Of the mechanics in building con
struction is the greatest hindrance tC
the providing of sufficient buildings tc
in any way meet the present demands
A propaganda or movement of some
kind on the part of all builders, real
estate agents, building material men
manufacturers of all kinds Of building
materials, loaning institutions. and
labor unions themselves, to instil IN
their men the moral obligation to give
an honest days work for an honest
days wage, will do more than any