The New York herald., 1920-01-18
Shortage of Homes Cause OF
Active Buying Through
out the Suburbs.

Westchester county needs dwelling
houses by the hundreds. Builders are do
ing thei rutmost to supply the demand
While some headway is being made, still
unless production is speeded up a long
time will elapse before a supply large
enough to meet the demand will have been
created.
Prices higher than ever before known
are being paid for properties. But there
is not the profit in these transaction that
the ordinary person, unfamiliar with con-
ditions, imagines. In the case of the
man who built some time ago, the profit
which ne can obtain for his house ap-
pears large at first sight. but the prob
lem Immediately confronts him, What
will do, and where will I go?'
The moment he has sold his house he is
in the same position as the man who
bought was before he made his purchase
II anything he Is worse off, because he
then must do the Shopping around He
finds out that prices have advanced to q
still higher level, and all his profit is
wiped out and deficit created.
Take the case of the builder. He buys
plot, usually paying about thirty per
cent more than he could have obtained 1t
last year. He has his worries of finan-
cling the building, fear OF labor strikes.
delays in obtaining materials from supply
men and the mills. and a hundred and one
other vexations. all of which reduce his
prospective profit. OF course he is in po-
sition to sell. because he does not need
the house for his personal use, but the
additional expense and worry as COM
pared with normal times, justifies his
profit. OF course this profit Is shaded
considerably by the government tax While
the foregoing may appear gloomy and
pessimistfc, nevertheless, in reality 1t is
n 90 hA xNaI 4
huilder are about the same as in former
times. The tremendous profits, which ap-
pear on the surface, simply do not exist
The outlook brings promise because of
the fact that every house erected means
an increase in supply. Houses once erected
in suburban sections, remain for years
In this 1t differs from the other two
main essentials of life, food and cloth
ing, both OF which are short lived and
do not spell permanency.
In speaking of the situation, Bert S.
Herkimer president OF Herkimer. Inc
said yesterday
1T is a lamentable fact that there will
be great shortage of high class new
houses in Westchester county for tre
spring market. Last autumn IL was the
general assumption among builders that
the level of building material prices was
so high that it would be good business not
to start any operations until the spring
now approaching. Those builders a"e
now In a worse dilemma than they were
then, since building material prices and
wages have advanced from thirty to SEE
enty per cent since that time
AT Pelham Knolls, Pelham Manor. New
York, we are now engaged in building a
number of residences containing from ten
to six rooms with from three to two baths
each At least twelve of these hou .
arc almost completed and will be ready
for occupancy in the early spring. The
construction of these houses was begun
last September. and therefore the pur-
chasers will obtain the benefit of lower
priced building material and contracts
made before the recent sharp rise.
Pelham Knolls is bounded by Colonial
avenue, VOLTS lane and the Esplanade
Pelham Manor. 1t is within easy reach
OF Long Island Sound. New York Ath-
letic Club, Pelham Bay Park and nu-
merous yacht and country clubs"