Evening star., 1936-08-15
INCREASED RENTS
bACKBONE0F GAIN
BY REALTY FIRMS
Survey by Board Shows
Most Promising Outlook
in Many Years.
81 PER CENT OF CITIES
REPORT IMPROVEMENT
Prices Higher Than a Year Ago
in Over hree-Quarters
of Area.

Increasing earning power OF busl-
ness as well as residential properties
forms the backbone of improvement
in the real estate business, the Ma
tional Association of Real Estate
Boards reported today in its semi
annual survey of the real estate mar
ket, which showed the outlook in
great majority of cities is the most
promising in many years.
The survey was compiled from con-
fidential reports made by local mem
Der boards, and covers 252 cities. 1t
indicated the real estate market in
general is more active than q year
sgo in 90 per cent Of the cities OF the
country.
New home building, the most strik-
ing expression of real estate recovery,
is being held back in some communl-
ties by construction costs, while in
other cities difficulty is still expert
enced in adjusting mortgage terms to
BUYERS needs. However, in many
localities business improvement has
reached the point where home sites
are again in demand.
Higher Real Estate Prices.
The survey showed that real estate
Is selling for prices higher than a
year ago in II per cent Of the cities.
Only / per cent report a price level
lower than year ago. Many reports
comment that great bargains from
foreclosure sales are no longer to be
found.
An outstanding new feature of real
estate recovery is the way rents for
central business properties are "step-
ping up," trend of importance in
that it indicates how far business in
general is preparing for coming
activity. Higher rents are being OBJ
tanned for central business property
In 81 per cent of the cities. Only 2
per cent of the communities show de-
creaSing rents. The associations
survey of six months ago, which found
business property rates up in 81 per
cent of the cities, was the first survey
In 10 years In which a majority of
the cities had reported such a trend.
Considerable variation is shown be-
tween the various geographic sections
of the country in the spread of real
estate advance, and individual cities
even in the same section vary both
in respect to details covered in the
survey and in respect to general
market activity.
Real Estate Outlook.
The survey gives these important
measures of the real estate outlook:
/. Undersupply of single-family
dwellings Is shown in 76 per cent of
the cities reporting, as against Sc per
cent so reporting six months ago.
Only 1 per cent show any oversupply.
2. Undersupply of apartments is re-
ported in As per cent of the cities, as
against 43 per cent of the cities six
months ago. Only 4 per cent show
any oyersupply.
3. Rents are higher than last year
for apartment space in 80 per cent
of cities reporting, and for single
family dwellings in 81 per cent of the
cities. More, there is almost complete
absence Of any down-trend. Only l
per cent of cities show lower rates,
whether for detached houses, duplexes
or apartments. In two geographical
sections, the East-South-C Central and
the Mountain sections, 100 per cent of
the cities show uptrend in single
family house rents, and one of these,
the East-South-C Central section, shows
100 per cent upward trend in apart
ment rates.
4. The rent advance most frequently
reported is 10 per cent. This is true
both for detached houses and for
apartments. Rents for single-family
dwellings in representative metropoli-
tan centers are now at about SO per
cent of their 1926 level, but apart
(See SURVEY. Page C-4)