Evening star., 1934-10-13
FALL INCREASES
SPACE DEMANDS
Rent Increases in Capital No
Greater Than in Other
Cities of U. S.
Continued From First Page.)

CONTINUED From First Page)
for existing buildings is seen to have
overtaken costs expected for new
buildings, especially, of course, cost
of construction.
The report of the association con-
tinues:
Letters in response to the institutes
inquiry on rental trends show that
increased rates are an unmistakable
measure of absorption of vacancies,
+ due to undoubling of families hitherto
living two or three together. They
become, thus, a substantial indication
of bettered family income or income
expectancy.
An important factor in the situa-
ton is the rental adjustment going
On where property has gone from
weak ownership to stronger owner
ship and to more skilled management.
Units priced out of line with their
actual comparative rental value in
the depression panic are now being
brought back into line with the mar
ket. Increases affect more generally
tenants seeking new quarters. Ten
ants remaining get the breaks.
Shaping of Schedules.
Mixed factors and conditions shown
existing in the rental field indicate
the importance of experienced man
agement judgment in shaping rental
schedules at this time, Howard E.
Haynie, Chicago, president of the in
stitute, points out.
Outlook for real estate is the most
favorable we have had in years."
said practically every letter written
IN response to the associations re-
quest for rent news.
Leonard P. Reaume, Detroit, a past
president of the National Association
of Real Estate Boards, vice president
Of the Detroit Trust Co., states: Resi-
dental rents in Detroit, including
family residences, fats, and apart
ment buildings, show an average rate
of Sc per cent higher than that of
six months ago, with a remarkable
recovery in occupancy, which I esti-
mate as now up to normal In this
section. Significance of the rent
change is shown by the fact that in
January of this year Detroit rents
had sunk 81 per cent below the jan
uary, 1928 level.
Occupancy in rental properties, as
shown by survey of over 10000
units in all sections of Greater De-
troit, is back to the 1929 figures. In
fact, they are fraction of ! per cent
higher than the 1929 percentage.
Peak of vacancy, for rental units at
least, came in 1882. earlier than is
generally realized. Recovery is great
est in low-coSt properties. Much less
moving is taking place due to the de-
creasing number of vacancies. Nov
ing is to slightly better quarters"
Irving B. Hiett, Toledo, past presi-
dent of the National Association of
Real Estate Boards, and president of
the Irving B. Hiett Co., Toledo says:
Residential rents have advanced in
the last year probably to the extent
of 20 per cent. Our low point of
rentals was in the early Spring Of
1888. There is still good supply of
apartments, but about the first OF
this year well located houses in first
class repair became almost 100 per
cent occupied. Causes of change are:
Undoubling of doubled families; bet
tered family income; drift of new peo-
pie to the city and of former resi-
dents back to the city.
Outlook ENCOURAGING.
1.-THE outlook for real estate Is
more encouraging than at any time
for years. Causes: Improvement in
rental conditions; very much better
employment in labor; gradual elimi-
nation Of properties in distress; the
prospect of a good many people
building their homes as soon as they
can secure financing"
Joseph w. Catherine, New York
and Brooklyn, president of the New
York Association of Real Estate
Boards, reports Marked decrease
in vacancies in apartment houses, and
the sterilization of rentals in this
type of property. Undoubling of
families is creating shortage in the
better type Of apartment house. Many
of the buildings that had a vacancy
of 25 per cent to 331s per cent year
ago are now practically 100 per cent
rented"
Donald T. Pomeroy, Syracuse, N. Y,
NOAAAn L4IA1IS G441o ululCddOu LOT new
York, adds: In apartment houses
there has been a remarkable cut
down this Fall in vacancy. Average
vacancy in so-called modern apart
ment houses a year ago as shown
by survey was 20 per cent. Today it
is less than 5 per cent, and in many,
many cases, apartment houses are
100 per cent rented. This condition
has resulted in raise in rents which
Is taking place at the present time,
usually ranging from $3.50 to $500
per unit. Last Spring the lack of
supply Of one-family houses to rent
became very evident, resulted in
definite Tightening in rental prices,
and, In many cases, in increasing
rents. Increases have been main
tanned. No doubt next Spring is to
see very definite upward trend in
rental Of one-family houses"
U. C. Stockwell. Albany, N Y, on
the other hand, sees the situation in
his section as fully 80 per cent de-
mand for reduction of rents. Trend
to furnished apartments, he holds,
indicates that people are unsettled,
and are experimenting with new
positions