San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-08-26
SOME VACAN i
ARE
GOOD FOR TOWN
Expert Declares at Least
10 Per Cent Should Be
Available to Renters.
KEEPS RENTALS FAIR
When There Are Few Dwell
ings Available Natural en-
dency Is Higher Price.

II you ask the average man on the
street what constitutes a normal hous-
ing supply, after little thought. he
very likely will answer. "One dwelling
or one apartment available for each
family in the community"
In the housing surveys made recent
~ for the American Bond and More<
gage Company by Harold Almert, con.
sulting engineer, he points out thaS
one house or apartment available for
each family is subnormal condition
and creates a building owners mar.
ket; in other words, unnecessarily
high rentals, writes W. ]. Moore, pres
ident of the American Bond and .Morts
gage Company. in America Today
Why? Because when there is no
choice and the owner or agent may
charge what he pleases, the tenant has
TO pay the price or move to some other
community. And rather than do so he
generally pays the price asked.
Until summary of the housing sur
veys above referred TO was published,
the general belief was that a housing
shortage had existed in Chicago, for
example for a number of years. Yet
this survey shows that there never
has been a time in the last ten years
when there were more families in
Chicago than there were houses OF
apartments available for occupancy.
Surplus Is Necessary.
In 1916, there was a surplus of over
$4,000, and the nearest approach to .
deficit occurred in 1921. when the sur.
plus was reduced to 1850. Such q
small surplus, however. constitutes az
actual shortage or deficit when viewed
from the standpoint of what COM
stitutes normal supply.
From the building owners stand.
point, well balanced normal supply
of housing for any community may
be said TO exist when there are just
enough apartments and dwellings OF
the sizes, kinds and locations desired,
so that those offered for rent will
command rentals sufficient to pay all
proper fixed and operating expenses
including depreciation, plus a profit
or interest return on the entire invest.
ment commensurate with the hazard
of such investment. Tie minimum net
return under present conditions would
be s per cent in a developed, zoned
and stabilized location.
From the renters or tenants stand
point, a normal supply exists when
there is a sufficient number of apart
ments or dwellings to permit choice
in regard to size. kind and location at
a price no greater than will return
the owner n sum sufficient to main.
tain the integrity of his investment
and pay reasonable profit or inter.
est on the investment.
Tenants Should Have Choice.
In Chicago with the present popula-
ton surplus of 10000 apartments
constitutes . per cent surplus or
one spare apartment for every 20 fam-
lilies to choose from. IL you compare
this with the surplus you require when
buying furniture. clothing. automobiles
or other commodities you would say
one spare apartment for every 20 fam.
lilies for choice of size. location and
price is no choice at all.
Having in mind the greatest good
for the greatest number. and keeping
in mind also the future growth of
community. rentals should be based
not on 100 per cent occupancy. but
about 90 per cent. In other words. q
surplus of about 10 per cent of each
kind. size and price of apartments and
dwellings should be maintained to
create a reasonable balance or salts
factory relation between landlord and
tenant.
Under such conditions capital for
real estate investments viii be avail
able at reasonable rates: tenants viii
have a reasonable range of choice at
reasonable rentals: conditions will Do
attractive to outsiders seeking per-
manent locations, and the community
will prosper.
1t would therefore appear that .
surplus of 5 per cent in any given
class of apartments or dwellings 10
only enough to prevent rentals from
increasing. With from to about 10
per cent surplus rentals will remain
stationary, but selection is increased.
and concessions regarding decorating
and the like will be more liberal
When the surplus goes over 10 PER
cent rentals will begin to drop, and
when the surplus is in excess of II
per cent ownership of rental property,
in all but exceptional locations, win
be unprofitable.