Evening star., 1936-02-08
2b CITIES REPORT
REALTY EARNINGS
SOARING RAPIDLY
Lower Interest Rates and
Available Capital Shown
in Most Communities.
LARGE CENTERS REVEAL
SALE PRICES MOUNTING
Rents Also Are Rising and Some
Towns Report Shortage in
Detached Houses.


A decided upturn for real estate in
every section of the country, with
earning power of existing buildings
index of real estate health-rising
rapidly, are highlights of the twenty
sixth semi-annual survey of the real
estate market made public today by
the National Association of Real Es-
tate Boards.
The survey covers 275 cities and was
made by the association from con-
fidential reports submitted by its local
member boards. Notable findings
of the survey are as follows:
l. Dominance of the factor of favor
able mortgage supply as affecting
amount of new building. People who
are ready to build houses can, in many
communities, get mortgage loans at
interest rates perhaps per cent lower
than last year, and on terms that en-
able them to take advantage OF land
prices before they rise further. Some
communities still report that only the
borrower who needs no more than a
SO per cent loan finds financing
sources open.
2. Wide variations in degree OF real
estates, recovery as between commun-
tiles where distressed properties have
been dumped and those where the
market has had orderly management.
Largest Rise in Big Cities.
Real estate is selling at prices higher
than a year ago in 60 per cent of the
cities of the country. The rise has
reached 80 per cent of the largest
cities. Turnover of real estate Is more
rapid than year ago in 81 per cent
of all the cities over 100000 popula-
ton, and in IS per cent of all cities
included in the survey. A shortage OF
single family dwellings exists in two
thirds of the cities.
Rents are increasing, indicating the
country is approaching period OF
great increase in construction volume
For apartments, rents are up 10 per
cent over last year in three out Of every
four cities, and up is per cent in a
third of the areas. They are rising in
rs per cent of the cities, but rates for
apartments are still less than so per
cent of the 1925 level.
Detached houses, more generally
than apartments, show higher rents.
They went up 10 Der cent or more in
SO per cent of the cities and are up
Is per cent in one out of every three
cities. They are now within 20 per
cent of the 1925 level.
Leases Also Higher.
Central business property is leasing
at higher rates than year ago in 81
per cent of the cities, the first time In
10 years of these semi-annual surveys
that a majority of cities report such
q trend
Actual interest rates at which first
mortgage loans on new moderate
priced homes are now commonly being
made range as low as per cent in IA
per cent of communities reporting. Six
months ago only per cent of cities
reported this rate.
No city of over 100 900 population.
whatever its geographical section, now
shows it's common rate on flrst-mort-
gage home loans as over 7 per cent.
In the present survey the association
for the first time asked its member
boards to report on percentage OF
change in residential rents. The sum-
mary above is from these quantitative
reports.
Housing Shortage Significant.
The shortage Of single-family dwell
ings shown in sc per cent of the cities
reporting is the most significant fact
in the immediate outlook for new
construction, and one of the basic fac
tors of the whole recovery situation
But apartment buildings have shown
the most general change in space
absorption. Actual shortage of apart
ment units is now reported by 43 per
cent of the cities. whereas only 2S
per cent so reported six months ago
Only 2 per cent of cities still show
overbuilding in single-family houses
But shortage here is not more gen.
eral than was reported six months
ago. when it was shown in SO per
cent of cities. At least one city states
new building has already eased the
shortage.
Shortage both of houses and OF
apartments has come to be more gen.
eral in cities under the 100000 popu-
lation mark.
A small group of cities-9 per cent
of those eporting-already show
shortage of business property.
Space Rates UP.
Most striking new development
shown by the survey is the fact that
rents for business space in the centra
business districts-cold turkey meas
ure of the Judgment of individua
firms in general business as to theil
own future-are up in 81 per cent
Of the cities replying. Only % PEI
cent of cities showed an up-trend o
central business property rates yeal
ago. The present Is the first semi
annual survey of the association sinc'
that of December, 1924, in which
majority of cities show this trend.
For outlying districts business prop.
erty rents are still at last years leve
IN 10 per cent of cities replying
higher in only 81 per cent of cities.
Downtown Office space Is renting al
approximately last years rates in z:
per cent of the 275 cities, but ha!
moved up in % per cent of them. Ir
outlying districts the change is slower
with SO per cent of cities showing
last years rate, only 13 per cent show
ing gain.
For either business property space
(See EARNINGS, Page %