Imperial Valley press., 1936-10-06

RENTAL RISE
IN SEPTEMBER

MINNEAPOLIS.-In spite of he
II per cent increase in home build
ing volume so far in 1886, the ac-
cumulated housing shortage has
been little affected, in 81 out OF
"a cities reporting in a rental sur
vey just completed by Northwest
ern National Life Insurance COM
pany. Numerous increases in house
and apartment rental rates were
made on September l in 5S of the
cities, the report shows, the in
creases ranging from IL per cent
up to 80 per cent. In 55 cities fur
ther rent boosts are expected be-
tween now and May /, 1887.
Twelve widely scattered cities es-
innate that rs per cent or more OF
their new and renewal rentals were
raised September l. The twelve
cities are: Minneapolis, Saint Paul.
Salt Lake City, Portland, Ore. Ia
coma, Wash, Atlanta Ga. Birming-
ham. 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 vari-
Gus groups of residential property
during the past twelve months. An
other fourteen scattered cities re-
port that half or more of their new
and renewal rentals were raised
September l. Many rental agents
have made blanket increases OF 5
per cent to 10 per cent on all apart
ment and house rentals in their
hands, the report shows. Pacific
coast cities from Los Angeles to
Seattle report that in spite of resi-
dental building increases ranging
from % per cent to 300 per cent.
construction gains have not kept
pace with the growth in demand;
numerous rental increases are be-
ing made, OF from per cent to
25 per cent.
Washington. D. c., reports that
its extensive residential building
program of 1885, with the further
! increase of 81 per cent to a volume
of over s16,0O0,000 in the first sever
months of 1886, has approximately
kept pace with the rapid increase
in population in the capital city
no general rent rise is antic' c'pated
The situation in Minneapolis and
Saint Paul is cited in some detail
as typical of that in great many
cities covered by the report. Apart,
ment vacancies are near the van
ishing point. Apartment buildlng'
which were foreclosed during tht
depression have been largely re
habilitated and the rents raised tt
levels consistent with the improve
ments made. In a number Of case'
apartment rentals again approxim'
ate 20 per cent annually on tht
building valuation - considered {
sound operating basis during tht
late tWenties. Further rental raise!
contemplated in the next six months
will bring other buildings to thai
ratio With very few houses fol
rent, there is nevertheless a con
siderable supply of houses for salt
IN both cities. Sales are proceed
ing at a more rapid rate than las
year, however; many would-bt
renters are being forced to buy il
order to have a place to live. Som'
rental houses which were for sale
earlier this ear have recently beer
withdrawn from the market as own
ers see better rents. "Chiseling" O.
rents, and demands by prospectiv:
tenants for other concessions, 81
numerous even year ago, are now
almost eliminated.
Increases in residential construc
ton over the corresponding month:
of 1885 are shown in 66 of the n
cities reporting, the margins of in
crease ranging from slight gains tc
expansions of seyeral hundred pei
cent. In the majority of cases, ir
spite of the encouraging improve
ment recorded, the construction
rate is still much below that Of
pre-depression years.
The survey was made by the in
surance company through real es
tate board officials, realty firms
and rental agents.