Evening star., 1934-09-08
D. c. REAL ESTATE.
SEEN PROGRESSING.
luchs Says Conditions Here
Should Continue to Gain
With Good Demand.

An encouraging ana opJlmiStlc pic
ture OF the real estate market and
business In general, particularly In
Washington, was painted In an inter-
view yesterday by Morton j. Luchs,
vice president Of Shannon d. Luchs Co.
zone need only sit down and
make q mental survey Of the real
condition here today" he said, Ito
realize that business in Washington
should be good and should pick up
every week and every month as we go
along.
"It is only natural that Washing
ton, being the Capital, has never felt
the depression to the same extent as
other parts of the country. In other
cities factories and industries closed
down. In Washington the Govern
ment departments stayed wide open
and instead of cutting down on the
number of employees the number has
been increased and is said to be great
er than during war days.
Active Market Seen.
Naturally, recovery in Washington
is coming in on high. 1t is taking
little time for this recovery to be felt,
but 1t has been very noticeable during
the last eight months In the general
real estate business and real estate
market. In July and August, the
dullest months of the year In this
city, the market has been very active.
In fact, sales have been greater, prob
ably, than any months in the past
i've years.
"In normal times Washington has
always absorbed 1000 or more homes
and housing units per year. During
the past four years there has been
practically no building going on and
only about Ie0 to 200 housing units
have been built each year, so 1t can
be readily seen that there is q short
age. considering the great increase In
population. Mr.. Luchs considers that
this increase in population Is for the
most part permanent. 1t Is true that
a great many new Government activi-
ties have been started which will re-
ouire many new employees. some per-
manent and others for the next 5 or
10 years.
Shortage OF Homes Clteu'
because of the fact that there has
been little construction work done
here during the past four years there
is a shortage of high-priced and mod
erate-priced housing units for rent
in Washington.
"In the past If q person wanted
house and could not rent 1t, he would
buy and sometimes terms would have
to be made convenient for him. There
is no reason why history should not
repeat itself today and turn great
many prospective tenants into own
ers. The new housing units must
be here for them to buy.
Another thing that has caused q
demand for rentable homes Is the
fact that In cases where two families
have been living In one house, since
work is being furnished, they now feel
that they. can separate and have their
individual homes.
"It is only reasonable to expect some
Government employees to be let out
in certain departments as temporary
recovery functions are completed, but
other departments which are already
functioning or departments or COM
missions which are being created.
Thinks Gains TO Be Steady.
IT do not think any one would be
foolish enough to believe that all of
these new Government activities are
going 10 shut down at one time in any
one year. Certainly many of them
are going to function whether they
want TO or not for the next 10 or Is
years. Some Of the activities which
were. created in the last session of
ton. These new employees are filling
every desirable housing unit and caus-
ing q definite focus on the city of
Washington, making it the best place
In our country to own real estate
from an investment standpoint by out
of-town investors as well as local in
vestors. Investors now realize that
through the greatest depression this
country has ever known, Washington
was the city least affected and they
can always look for q steady real
estate standard of value"
Mr.. Luchs stated that over a year
ago his firm noticed o determination
on part Of investors to put their
money in washington real estate,
and there have been hundreds of
sales IN the last 10 months for purely
investment purposes. During the last
six months there has been q notice
able amount OF inquiries from people