The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-19
NEW york RENTS.
A Real Estate Owners Exposition Of
the Present Situation.

the Present Situation.
To THE EDITOR OF THE suN-str, Not
withdrawing the wave Of indignation
that Is sweeping over New York al
rapidly rising rents and against the
Ubiquitous landlord who 10 occasionally
taking advantage of tho shortage IN
housing. It Is well to think clearly and
act with intelligence on this compli-
Gated question.
The shortage OF rentable space In
New York was created by three factorsl
Lack Of adequate. return on capital In
vested in real estate; Government en-
barge on construction and high cost OF
materials and labor.
The solution Of the problem Is the re-
moval Of the causes that brought the
problem into existence. An adequate
supply of space for commercial and do
nestle use can only come into existence
through stimulating production. and any
artificial interference with the operation
of the law Of supply and demand will
only make the situation more acute.
This does not mean that gross abuses
by landlords should not be dealt with
on the merits Of the cases, but short
sighted men are inclined to run amucls
in times like these and by legislation
make II impossible for those who wish
to venture into the building field to do
80 with safety.
To Illustrator We have a building
programme in Brooklyn that involves
the investment OF several million dol
lars, the construction of 400 apartment
houses, the housing of 5000 families or
10000 individuals. As an experiment
we are now providing space for 100
families. The building that cost 336. 900
in 1914 will to-day cost us between
/ $4,000 and $4,000. so We must get
rents at least 80 per cent. higher than
those Of 1914 because practically every
building built in 1914 or earlier was run
at q loss until 1918. We believe the
rents are forthcoming, but Il they are
not, or II II looks as II rental increases
are to be checked by law, We will sim
ply drop our plans and sell the land
for high class detached houses for which
there is a great demand.
Our situation is the Same as hundreds
of others who wish to undertake build
rents IL not turn the tendency the other
way.
Another handicap is labor costs that
seem to have no tendency to decrease.
This situation, II permanent must
| stabilize rents on q higher level than
ever before.
Increasing taxes is another menace
that has tended to mako real estate a
liability rather than an asset While
feel very strongly that q fixed limita-
ton on taxes will DO moro to stimulate
building than any other one thing at
tho present moment, yet a Just tribute
should be paid to the present city ad-
ministration for It's strenuous efforts to
keep taxes down along other lines.
Our own experience in tho ownership
of improved real estate in New York
IL probably a fair example Of tho gen.
eral situation that owners have had 70
meet. Within tho past ten years we
have owned hundreds of buildings in
Brooklyn Of all kinds. ranging from
small detached houses to large business
buildings and apartment houses With
out having tho figures at hand. I think
I am safe in saying that our New
York real estate. running into tho mill
ions, bought for investment and with
the greatest care. has yielded us rather
less than 4 per cent. during the past
ive or even ten years.
Our Western Investments have
| brought US handsome returns; our
Eastern ones. with few exceptions. have
been disappointments up to now. These
are the facts stated fairly and without
conscious bias. II would seem they
were worth something to those who are
trying TO think clearly and act wisely
in the premises.
WILLIAM e. HARMON.
NEW YORK, April IS.