Evening star., 1922-03-16
rent LEGISLATION
KEEPS RATES up.
Mr.. Dodge Says Owners o.
fer Houses for Sale Under
Present Situation.

Desirable houses for rent in the
District Of Columbia have decreased
in number probably so per cent dur
ing the last three years. due to the
effect Of rent legislation on the real
estate and building industry" it was
stated today by Clarence Dodge, men,
ber of the real estate firm of Weaver
Brothers. 4J.:.
Owners of dwellings occupied by
tenants have gradually thrown their
holdings on the market for sale until
today 1t is difficult for tenants to find
places to rent at reasonable rates."
he added "That it Is but natural.
from an investment standpoint, for
these property owners to discontinue
renting their houses with a view to
disposing of them to purchasers is
evidenced by the fact that some in
vestors have increased their incomes
so per cent by selling rental property
and investing the proceeds in some
other form of securities at present
rates of return.
Building Many New Houses
ut is not lack of financing facilities
nor a question of costs that is hinder
ing the erection of rental buildings in
Washington, but the handicap i'm
posed by rent legislation. Washington
is building as many new dwellings, as
workmen can produce, but they are
all for sale purposes. Production of
rental property would proceed SINH
larly were there no rent commission.
and the housing problem automatical-
ly would solve itself.
Finding it difficult under the pres
ent Ball rent act to secure a reason
able increase in rents. property own
ers. out of evaporation over pro-
!onged delays in administration Of the
law and Indignation at continued as
SauitS on their character. have got
rid of their investments and diverted
their money into other channels.
Proof Seen at Los Angeles.
Proof that lack of finances in the
race OF building costs has not. been
responsible for the cessation OF con-
sfruction OF rental quarters is seen in
Los Angeles, Calf, where, although
the money market is tighter and la
Dor and material costs higher. build
ing activity, as it affects dwelling
houses and business properties, is
progressing in an extraordinary man.
ner. There the law Of supply and de-
mand has been allowed to work it.
Self out without interference from
legislative sources.
lf Los Angeles was inflicted with
rent laws. there would be no building
Doom there as at present.
The Ball rent act is not relieving
the housing situation in the District
OF Columbfa as far as the federal and
private employees are concerned. 1t
Is forcing some persons of limited
means to buy houses they cannot af-
ford and Is depriving those who can
only afford to rent Of homes they
desire.
Food Prices During War.
What enabled prices of food, cloth
ing and other commodities to drop
after the war? They went so high
that consumption was curtailed and
soon merchants were begging for
customers. This condition resulted in
.curtai!ed production and the only
remedy was a drop in prices to regain
lost trade. Rents would work out
their own solution in a similar way
it let alone.
so long as there is a rent COM
mission which delays reasonable in
creases in rent, there will be a delay
in the operation of this fund amental
law Of supply and demand, Is 1t fair
to the property owner to keep prop
erty at old rentals when values are
increased"