Evening star., 1934-08-11
GREATER ACTIVITY.
IN REALTY SHOWN.
Rapid Absorption of Space
Recently Reflected in
Rising Rents.

tCoutinued Prom FIRST Pagel
sineie- family dwellings The like sur
vey of one year ago showed shortage
of such dwellings In only ~ per cent
of the cities (iess than one-foufth OF
the present percentage), and oversup-
ply in is per cent Cfour times the
present percertage).
Conditions Favor Advance.
The associations surveys indicate
that the peak condition Of oyersupply
for single family dwellings for the
country as a whole occurred q year
and a half ago.
The survey, compiled from conf
Dental reports from the assOciation's s
member boards. shows not only favor
able trends but also foundation cVn-
djtions definitely favorable for general
and rapid advance. Principal OF such
factors:
/. Space absorption, reaching in
some sections even 70 business strllc-
lures.
z. Increased return for real estate
investment promised by sharpening
rent conditions.
q An already measurable re-en-
trance OF capital-seeking investment.
4. Predominately steady or falling
interest rates
Prices have not advanced as gen.
orally as has turnover, but selling
prices are already higher In SO per
cent Of the 26s surveyed cities. They
are unchanged in So per cent Of the
cities, lower than a year ago In is
per cent Of the cities.
Enormous variations are shown geo.
graphically In respect TO price advance.
The East South Central section shows
prices up In 70 per cent Of its cities;
the West South Central section in 81
per cent OF its cities; the South At
iantic section in SO per cent of its
cities.
Big Cities Lag I'm Prices.
Cities of over 100000 population
show most general gain in market
interest, 30 per cent Of them report
ing a more active condition than pre-
vailed year ago. 20 per cent an un-
changed condition, but no city re-
porting q weaker market However,
these largest cities lag behind the
country as a whole as 10 price rise.
Geographically the South Atlantic
States lead the return to more
active market, with "a per cent of its
cities OF all sizes showing increased
activity.
As to growing absorption of the
Nations residential space the survey
notably supports and supplements the
findings Of the Federal real estate in
ventory, covering more than so cities,
returns as to which are Low being re-
leased. Il goes further, and shows
also not only q definite national ad-
vance In demand for apartment space,
but also the first slight turn in the
s,Ipply-demand condition for business
and Office space.
For the first time since June, 1880,
cities-only per cent as yet-begin
Co report actual shortage of business
and ONCE space. The largest pro-
portion is shown in the South Atlantic
States.
Apartment Space Short.
Under-supply of apartment space
began to be shown a year ago in
per cent of the cities reporting. 1t
was shown six months ago In IL per
cent Of the cities reporting, and is
now shown in 20 per cent of the
surveyed cities. Over building in
apartments, reported in SO per cent
of the cities year ago, Is now cut
down to IA per cent of the reporting
communities, while sc per cent show
o normal supply demand situation.
Rentals, most convincing index of
space absorption, are reported up for
single family residences in 40 per cent
of the cities. stationary In AZ per cent
and down in per cent. Apartments
show rents up In IS per cent of the
cities, on a level with last year in
81 per cent of the cities, down in
per cent. Two-family dwellings lag
behind apartments, and far behind
single family dwellings in regard to
rent increases.
Business space shows more gain
than office space as measured by rent
appreciation. Central business dis
tricts, for both types of structure, lead
outlying sections In this change.
Higher rents are reported In central
business property in 20 per cent of
cities, stable rents in "a per cent,
lower rents IN Is per cent. For office
buildings only 9 per cent of the cities
report higher rents, but on the other
hand only 13 per cent report lower
rents, 7S per cent reporting stabi-
Lied rent level
Greater Activity Reported.
Some reflection of the bettered
financing outlook for the home builder
may be seen in the fact that IA per
cent of the cities report O more active
subdivision market. However, I'll per
cent report less active market, 65
per cent show about last years
condition.
For the first time since June, 1929,
there is an increase observable in the
percentage of cities showing capital
seeking investment, with Ie per cent
of the surveyed cities now so report
ing. As yet, however, 10 per cent of
the reporting cities show a dominance
OF loans seeking capital
Interest rates are steady in 72 per
cent Of the cities, rising in 10 per
cent, falling in Is per cent of the
cities reporting Among cities of over
100000 population, 80 per cent show
falling rates. OF these major cities,
~ per cent show capital seeking
loans. but rs per cent show loans
EaakinC m initial