Evening star., 1935-01-20
Decline in Rentals
and Income of Tenants
BY HARDEN COLFAX.

Urban rents in the United States
suffered an average decline of approx
imately % per cent between 1929 and
1888. At the same time incomes fell
of about 80 per cent. About one
quarter of the average tenant fanily's
income for 1888 was required to pay
the rent bill.
These are some of the conclusions
which may be drawn from the finan-
cial survey Of urban housing in 81
cities Of the United States just made
public by the Bureau Of Foreign and
Domestic Commerce. This survey.
c. w. A. project, conducted in one
of the fields of investigation culti-
waited by the r. P. I. (Real Property
Inventory, reveals interesting infor-
nation CLEANED from reports from
165. 900 tenant families in these 81
cities.
In every area covered the decline in
income was substantially greater than
the decrease in rents. AS a result, it
is inferred that just short of "a per
cent of the income Of the average
tenant in our cities Is now required
for rent. Moreover, partly as result
Of these conditions, more than one
quarter of all families reporting to the
Federal enumeratorS were said to be
delinquent in rent payments at the
beginning Of last year.
X n 4 +
Half Of the decline in rents occurred
in the last Of the four years covered
by the survey, that is, in 1888. This
would seem to confirm the general
impression that changes in rents are
generally apt to lag behind other
price changes. The survey shows that
rents in Southern and Western cities
decreased more than those in the East
The average rent per dwelling unit
in this survey was $21 per month, the
amount, however. varying rather wide
ly in East South Central cities from
that typical Of the North Central part
Of the country.
OF course, a wide variety Of condi-
tions had to be taken into consider
alton in making this survey. The
towns in the Far West were largely
resorts with a high proportion Of tran
sient population. In the East the per-
mency Of tenancy was more wide
spread. 1t was found that the propor-
ton Of delinquent mortgage payments
was somewhat higher in the West and
South than in the East, while the
average interest rate paid on such
mortgages was lowest in the East and
highest in the Far West.
OF the more than 800, 1000 single
family homes covered in the original
r. p. l., 81 per cent were mortgaged,
the ratio varying from 16 per cent to
rs per cent. As to the percentages
of tenants 'behind-hand In their
rent" some significant figures are
cited. The number Of tenant families
reporting delinquency in rent pay
ments was ~ per cent OF the total
on January /, 1884. The greatest
percentage Of delinquency occurred
among families which had been pay
ing one-for tn or more Of their in
come for rents. OF the families with
rents amounting to from IS to 19
per cent Of their incomes, about 16
per cent were delinquent. For those
paying rents Of from Is to 20 per cent,
however, the delinquency was about
~ per cent.
Valuations of dwellings show about
the same percentage of declines as
rents, which would naturally follow,
since the capitalization Of rents is
generally an approximate indication
Of property values.
This study shows that rent levels
in Far Western cities are generally
higher than those In the East, which
are higher than those In the South.
On the other hand, the ratio Of debt
to property values and the average
interest rate paid on mortgages are
lowest In the East and highest in the
West.
Government housing experts believe
this data on property values and rent
ing may be taken TO indicate that real