The New York herald., 1921-03-14
EXPERTS ASSERT
LOWER RENTS ARE
STILL FAR AWAY
Present Laws 10 Aid Only in
Erecting Small Houses in
Outlying Districts.
MANHATTAN HOPELESS
Tax Exemption Fails in
Purpose in Congested Sec
tions of Metropolis.
SMALL SUITES OVERD0NE
Restrictions on Landlords i'll
Measure Blamed for Lack of
Building Progress.
SMALL SUITES OyERDONE

Tenants who look for the coming year
to give them any relief from their rent
burdens are living in a FOOLS paradise
This at least Is the dictum heard from
real estate men throughout the city. in
the poor. medium and wealthy sections
nc Manhattan. The Bronx, Brooklyn and
Queens. No matter what happens TO
the other items that go to make up the
cast OF living, the market price of living
space must remain in the loftier alti
t1des for some time TO come, these au-
thorities declare and even the unbiased
analyst is forced to admit that they have
most OF the logic on their side of the
argument.
The most encouraging picture that
optimism can paint for the future is the
prospect of very gradual reduction
shading off is probably better descrip-
tive term-in the cost of hiring dwell
ing or fiat. Just when the break will
begin is a matter for conjecture, and
one mans guess is Just about as good
cannot assume worth while proportions
until the supply of housing is In excess
OF the demand; or. in other words, until
landlords are forced to bid against each
other for tenants. And therein lies the
Joker, for no one, even the most expert,
can venture to predict just when the
building boom will set in.
After the passage of the ordinance ex-
empting new medium priced housing
from taxation FAN
some real estate men and builders
thought they saw relief on the horizon.
But these same men also deluded them
selves with the hope that the renting
laws would be declared unconstitutional
Consequently, the recent decision of the
Court of Appeals at Albany upholding
the tenant-landlord legislation in toto
threw them back into the slough OF de-
spond. Now they declare that the stim-
illus OF the tax exemption law is not
nearly great enough 10 overcome the
opiate administered by the rent laws.
which have kept dwelling construction
In comatose condition for the last
year.
VIII Take Decade TO Catch ID.
The extreme optimsts declare that
there will be no material reduction OF
rents for the next ten years. and they
Odct AHtlI pTtulgLlOn ON InH GSflulate OF
construction experts that it will take a
fun decade to catch up with the demand
for housing. even with tho most inten-
sive building boom in effect Others
maintain that there will be some relief
within the next few years Building,
they argue. win be resumed with vigor
when the rcnt laws expire on November
i 1922. That. OF course. is contingent
iipon The hope that the Legislature will
.g -
tartcd such an avalanche OF protest
rom real estate circles. Brick and NOR
i'tr viii begin 10 ny even sooner than
INT. tho realtors declare. IL the Legis-
iature At its present session will only
NJ to modify the laws SO as TO give
lr landlord at least semblance of con-
;rnl over his property.
IN the meantime. practically all real
state men declare, the residential con-
truction work started by the Board of
Nldcrn~n's tax exemption ordinance
"iN CONSIST chiefly OF two family houses
u the outlying borouRhs and will at
l.sst provide just enough housing 10
eliminate the doubling up OF families
n those districts. Douglas L. Gilman,
head ~ the real estate firm OF Douglas
J.. Gilman Co. Inc. holds this be-
lief lie does not believe that this con-
truction VIII have any tangible effect
ttiA lfUN iNiins AtAiHuEn ne uOeE say InHr
Il viii give much needed relief from.
congestion IN the outlying boroughs.
Most Of Mr. Elliman's extensive activi-
lies lie In the high class residential Sec
tions OF Manhattan and he can see no
prospect of relief here. The demand
FOR housekeeping suites IL MS strong MS
ever. says Mr.. Gilman. and leases are
running al the old rental rates
Opponents OF the tax exemption
ordinance 60 "a far az 20 say that Il
may rNact disastrously on tine renting
aituauo ~ heapinp the burden or the
eity's increased tax levy on the owners
of the old apartment houses. who, in
iurn, viii try 10 rccoup their losses In
this direction by raising the rents IN
their properties when the Landlord ten
ant laws expire. Even ~ the Lcgis-
lature rcadopts the measures these
realtors say. the courts may be induced
a. accept the Increased taxes az n justi-
neatiou for slightly higher rents This
s. the opinion at least OF Jules Nehring.
Who handles many apartment house
properties in the washington Heights
and Morninrside sections OF Manhattan
and IN the west Bronx.
More Lcnicnt Now TO Landlords.
since tho enactment OF the rent
laws" said Mr.. Nehring II have had
81 great deal ~ court experience. chiefly
ia The capacity of expert appraiser in
disputes IN recent
iuouths I have noticed Z. tendency on
thc part of tho Municipal Court Justices
- hc more ienlent in their treatment or
htiEl lords This attribute TO tho fact
that they have had enough experience
fo convince them that all the right
IA tho matter is not on the side or the
tenants ana r.-s fhe huIlabaloo rafscd
iu behalf or tho i Ttor was stirred til.
10 certain extent ny demagogues
haxo noticed that landlords who como
INTO court with clean hands get fair
treatment rud don't believe that the
rdz.s would turn q deaf ear 70 n land
lord who could show that his tax bur
drns had been Increased 50 as 20 per-
init The owner Of new property 20 20
free
Rv no means al real estate mon share
,r,- opinion ay 10 the possible reaction
arv effects ~ the tux exemption ordi-
nance. Some believe tlmt protests on
the part Of the real estate interests
,ylli result next year In considerable
reduction Of the present exorbitant tax
assessments. MIR. Nehring admits that
,ne exemption ordinance will stimulate
Tho building ~ two and three story
houses south OF the yonkers lire.
This, however" he said. rs not the