Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-28
Estimated
value of
Stock Market a Factor.

Stock Market a Factor.
The stock market situation during the
past year and tight money conditions
have adversely affected building opera
tons here, as elsewhere, making it more
difacult for operators of large projects
to obtain mortgage funds. More re-
Gently the slump in Wall Street stock
quotations, in October and November,
proved q stumbling block to real estate
sales, as investors in stocks were forced
to call on their savings and available
cash TO cover up holdings in the stock
market.
Throughout the year bond issues were
not as popular as in former years. be-
cause Of the flow Of huge sums of the
money Of investors into stock pur-
chaSes, but observers believe that the
downward turn of stock prices, with
losses to marginal holders, will heighten
interest In first mortgage issues, through
which large building operations are
financed. Some f1nanciers already have
reported that increased funds are COM
ing to bond investments.
The year was marked also by some
labor dtmculties, q number of union
building trades demanding and cbtain-
ing some increases in wages. Con-
struction Of but few buildings, however,
was tied up during disputes, most OF
these being Government structures.
Several building trades groups stopped
work during discussion Of new terms,
but new agreements were reached
amicably, with no disorders occurring.
Failures Less in 1929.
A number of real estate and con-
Atruction concerns here failed or went
into the hands of receivers during the
past year, but the total was fewer than
the number of similar failures occur
ring In 1923.
Evidence that the basic underlying con-
dition OF the real estate market in the
District has made q turn for the better
Is seen by the Operative Builders As
ISOLATION in figures on sales and con-
Struction OF houses In the To-day period
ending December 10.
The survey. compiled by Rufus S.
Lusk. executive secretary, showed that
nearly twice as many new houses were
sold during october, November and the
firSt 10 days Of December as were
placed under construction in the same
period, indicating q pickup in the rate
OF new dwelling sales, though not in
the volume, as compared with last year.
The annual survey Of apartment va
eancteS made by the association and re-
ported early this month showed even q
more encouraging situation in apart
ment houses
The association found that despite the
tremendous volume of apartment house
construction carried forward here in
the pat two years, the percentage OF
vacancies in completed buildings was
9.s6, Q reduction from a vacancy total
OF 1924, whereas q vacancy of 10 Der
cent ts regarded normal"
Statistics regarding apartment va
cancies were obtained from 43 property
management departments of local real
ty concerns and covered 1880 apart
ment units. approximately 40 per cent
Of the total in the city.
1855 Houses Erected.
In contrast to last year, the cost OF
dwellings this year exceeded the cost Of
apartment houses. In both years, how
ever, the number of apartment units
exceeded the number of dwellings.
According to figures compiled by the
Operative Builders Association, there
were 1855 houses erected or started
this year, at q total estimated cost Of
$10,0o6,755. On the other hand. there
were SO apartment buildings erected Oh
started, providing q total of 2,04O hous.
ing units, having . total construction
cost Of 1855, 500.
During 1928, there were / .3O4 house:
erected or started. having q total cos
Of 0,27l $50. The number of apart.
menus was 10. providing 3,O40 houStlIE
units, at total cost of SIS, 284, 500.
Thus, the total number Of new hous
ing units erected or started this yeaI
was $685. as compared with 1914 las
year. The cost OF this construction
this year totaled $40, 655,255. as com.
pared with $28, $50, $50 in 1928. 1t viii
be seen also that while the cost Of
dwellings erected this year was nearly
the same as last year, the cost of apart.
ment buildings this year was a LITTLE
over half what 1t amounted to last year
Activity in Business Property.
The year has been marked by activit,
IN business property leases in the down
town section, many new leases tor lonl
terms indicating a rise in prope-L!
values, an street particularly. ASiuI
from extensive dealings in apartment
houses and other investment proper
ties. and the sales in dwellings, a mum
Der of large transactions added inter
est to the year.
The Willard Hotel passed into nev
hands. when control of the large hos
telry was acquired from the Boomer
au Pont interests TO a new operating
company headed by Frank S. Hight
Who for many years has manager tn
historic place.
During the Summer Harry Wardmal
closed a transaction under which &c
tive management of The major hote
anu apartment properties of his con
GCor1inued on Fourteenth Page.)