Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-11
Is There Need for Cost Housing?

In the absence of any details or
specifications the proposal for the
erection Of a number of apartments
for housing Government employees and
their families at a low rental remains
subject Of speculation. and it is by
no means matter Of surprise that
the operative builders of the city, who
are Immediately concerned, should be
active In their opposition to the plan.
For If the project is developed accord
ing 10 the outlines already advanced
the interests of these builders and OF
@ large number Of owners of securities
will be gravely affected. Secretary
Hoover's comment yesterday that the
furry which the proposal has caused
among real estate men Of the Capital
causes him to think that there Is real
need for 1t Is not, however, convincing
in the absence of any further partic-
ulars regarding the plan.
If there Is a real need" for the
erection of cost-price apartments sur
f1cient to house 10000 persons 1t Is be-
cause there is a lack of housing ac-
commodations in the District at pres
ent, or that the available accommoda-
tions are held at extortionate rates or
rental for purchase. No elaborate
survey is needed to show that there is
at present a surplus Of housing ac-
commodations in Washington. In
only a few of the larger apartment
houses are there no vacancies. Dwell
ings are for rent in every quarter or
the city. The only question is wheth-
err the rates at which they are avail
able to home seekers are unreasonably
high. To determine that question q
survey might be had. 1t is stated that
no survey cf the local conditions has
been made 10y the housing division OF
the Department of Commerce for
more than three years. In that time
conditions have changed considerably
Upon what IS the assumption based
that the rates of rental and purchase
IN Washington today are exorbitant,
20 the point OF warranting Govern
ment promotion of or cooperation in
a cost-price philanthropy providing
housing facilities for 5000 persons?
II there is a combination among the
realty operators of Washington to
keen up the rates of rental and pur-
chase beyond the point of fair return
upon investments 1t should, of course,
be broken. But such a combination
n
should exist the way to break it is
not for the Government to cooperate
in a cost-price philanthropy providing
a housing for one eighth of the local
population. Government aided hous-
ing is unfair competition.
If rates are too high in Washington
at present and there is a demand for
housing at lower rates the field is
surely open for private enterprise sat
isfied with a moderate return upon
investment. No philanthropy is nee
essary to break the corner in realty
developments if such a corner exists.
Meanwhile. II is by no means re.
markable that the owners of housing
facilities should be concerned at the
proposal that the Government should
aid in a non-commercial competitive
building program that If carried out
on the scale proposed would spell ruin
10 them and heavy loss TO those who
have invested their funds with them
Before the realty operators Of the Dis
trict are condemned for their present
opposition TO this project. there should
be a specific demonstration that they
are charging too much for housing
facilities in rental or in purchase and
are cooperating in maintaining those
rates in thu face of a diminishing de-
mand for accommodations.