Evening star., 1936-10-03
CAPITAL BUILDING
ABOVE $16,0DO,0DO
II Per Cent Increase for
1886 Still Leaves Housing
Shortage, Is Report.
h.eia1 Dispatch to The Star

T,ecldl plSpAICH 10 uc SttI
MINNEAPOLIS. october Sin
spite of the II per cent increase in
home building volume so far in 1886,
the accumulated housing shortage has
been little affected in 81 out of IA
cities reporting in a rental survey
Just completed by Northwestern Ma
tional Life Insurance Co. Numerous
increases in house and apartment
rental rates were made on September
] in So of the cities, the report shows,
the increases ranging from u per
cent up to 30 per cent. In SIS cities
further rent boosts are expected be-
tween now and May /, 1887.
Twelve widely scattered cities esti-
mate that rs per cent or more of their
new and renewal rentals were raised
on September l. The II cities are:
Minneapolis, ST. Paul, Salt Lake City,
Portland, Greg; Tacoma, Wash; At
lanta, Ga: Birmingham, Ala; Tampa,
Fla; East Orange, N. j.; Madison,
Wis, and the Chicago suburbs, Oak
Park and Wilmette. Dallas. Tex, had
no rental rise September l, but has
already had four increases on various
groups of residential property dur
ing the past IL months. Another IA
scattered cities report that half or
more of their new and renewal rentals
were raised September /. Many rental
agents have made blanket increases OF
to 10 per cent on all apartment
and house rentals in their hands, the
report shows. Pacific Coast cities from
Los Angeles to Seattle report that in
spite of residential building increases
ranging from 90 per cent to 800 per
cent construction gains have not kept
pace with the growth in demand: nu-
merous rental increases are being
made of from per cent to 25 per
cent.
Washington reports that its extensive
residential building program of 1885.
with the further increase of 81 per
cent to q volume of over sl6,000,000
in the first seven months of 1886
has approximately kept pace with the
rapid increase in population in the
Capital City; no general rent rise
Is anticipated.
The situation in Minneapolis and
St. Paul is cited in some detail. as
typical of that in a great many cities
covered by the report. Apartment
vacancies are near the vanishing
point. Apartment buildings which
were foreclosed during the depression
: have been largely rehabilitated and
the rents raised to levels consistent
with the improvements made. In a
number of cases apartment rentals
again approximate 20 per cent an
nually on the building valuation
considered a sound operating basis
during the late 20s. Further rental
raises contemplated in the next six
months will bring other buildings to
that ratio. With very few houses
for rent. there is, nevertheless, con-
siderable supply of houses for sale
in both cities. Sales are proceeding
at more rapid rate than last year,
however; many would-be renters are
being forced to buy in order to have
a place to live Some rental houses
which we're for sale earlier this year
have recently been withdrawn from
the market, as owners see better rents.
"Chiseling" of rents and demands by
prospective tenants for other con-
cesSions, so numerous even a year ago,
are now almost eliminated.
Increases in residential construction
over the corresponding months of 1885
are shown in 66 of the "a cities re-
porting, the margins of increase rang
ing from slight gains to expansions
of several hundred per cent. In the
majority of cases. in spite of the
encouraging improvement recorded,
the construction rate is still much
below that of pre-depression years.
The survey was made by the in
surance company through real estate
board officials, realty firms and rental
agents.