Evening star., 1925-02-26
DEMAND INCREASES.
FOR REAL ESTATE.
Business Property as Well as
Suburban Homes Are
Moving Rapidly.
BY j. c. ROYLE.

Special Dispatch to The Star.
NEW YORK, February 26.-The big
cities of the country are growing big
ger and so are the smaller towns.
Those facts account for the extraor-
dinarily active real estate market
which exists today. In the larger
cities the increase in demand for
business property has been tremen-
dous. In the suburban districts and
the smaller towns demand for resi-
dence property shows great activity.
What is really a combination of the
two trends is seen in the negotiations
for the sale Of the Equitable Building
here. which probably will be conclud-
ed this week. The deal will involve
the purchase of a whole moderate
sized community, within a larger one.
For the structure is one of the three
largest office buildings in the world
and more than 10000 people pass
through its doors daily. The deal is
said to involve $4,000, 900. The build
ing has about 1,237,o00 square feet of
rentable floor space, so that each
square foot is valued at approximate
ly $32.33. This would indicate no trend
toward lower rentals here.
Small Houses in Demand.
The largest number of inquiries
reaching real estate agents is for sim
gle family dwellings,, and realtors
predict that the greatest activity Will
continue in this type of property.
Business and investment properties
rank hgih in the number of inquiries
received, but the demand is coming
from a fewer number of cities.
Construction of parallel highways
between business centers to care for
additional motor transport has given
a stimulus to sales of property along
the new routes since bus lines VIII
furnish an adequate means of com
mutng. The general volume of real
estate transfers undoubtedly has
been increased by the tremendous
dealings recorded in Florida and 9TH
er Southern States and in California.
Real Estate Financing Easy.
The whole movement has been fos-
tered by a tendency of both business
and residential rents to increase and
by the shortage in single family
dwellings in the smaller cities. FL
nancing of real estate transactions
has been easy, since there exists at
present in nearly every section
plentiful supply of money for loan
ing, not only on first, but on second
mortgages.
Building costs still are high, but
the real estate and building situation
has not been so markedly affected by
this factor as might be expected,
since prospective builders and pur-
chasers see no indication that costs
will decrease, at least until the pres
ent wage agreements in the building
trades have expired. There undoubt-
edly has been some overbuilding of
certain types of structures in re-
stricted areas and some overexpan-
sion of subdivision activity. But TO
balance these facts there is now
greater activity in farm lands and in
construction of farm buildings than
has been seen since 1920.
Shortages Reported.
About 125 cities out of 259 still re
port a shortage of single family resi-
dences. and IS are lacking in apart
ment structures. According to a sur
vey by the National Association of
Real Estate Boards, 81 centers report
ed overbuilding, of which only 6 still
lack all types of construction. An
other year of active building opera
tions will add materially to those cit
les which report surplus, but 1t is
not likely that farm dwelling needs
will be filled within that time.
Mortgage money is plentiful in prac-
ticalIy every city of 250,000 inhab-
itants and over, but it is difficult to
get funds in 80 per cent of the cities
under $4,000.
Cities of between 100000 and 100000
people are now enjoying the greatest
subdivision activity in their history.