Evening star., 1939-04-29
Urban Real Estate
Phases Discussed
In New Book
Indiono U. Professor
And F. H. A. Economist t
Are Co-Authors

A summary statement of the eco.
nomic principles and business prac.
tices which help to answer the vari-
GUS questions arising from the
utilization of urban real estate form
the contents of a new book, "The
Principles of Urban Real Estate,
written by DR.. Arthur NJ. Weimer
professor of real estate and land
economics at Indiana University
and Homer Hoyt of Washington
principal housing economist of the
Federal Housing Administration
and published by New York
concern.
The authors point out that urban
real properties may be viewed as
shares in cities, with the value of
each share depending on the eco
nomic prospects of the city in which
1t Is located, and that every city is
supported by certain basic sources
of income arising from industrial,
trading. extractive, governmental,
educational or other types of activi-
ty. Also they emphasize the fact
that an analysis of these basic in
come sources indicate the probable
economic future of city-and the
prospects for rising or falling values.
Fixed and Unique.
"A parcel of urban real estate is
q fixed and unique point on con-
stantly changing framework" DR..
Weimer and Mr.. Hoyt say in sum-
marizing the material presented in
Urban Real Estate" Being fixed,
1t is affected to a predominant eX-
tent by local influences, it's value
arising chiefly from the relative
desirability of its location, rather
than from other sources. Being
unique, it differs from every other
real property and consequently its
marketability is limited. Also, a
real property typically lasts for long
periods of time, investments in it
being relatively fixed"
In the explanation of these princi-
Piles and practices two sets of factors
are given special attention: Cd Lo-
cation factors, which are associated
with the economic background and
SGl uStul VI AltlCo dlio WIFI llClslls
borhoods and districts, and CD mar
ket factors associated with the forces
of competition and the functions
which they perform. In the de-
velopment of general principles
these various factors are discussed
with respect to economy in the
utilization of real estate resources;
that is, with getting as much as
possible of what individuals want,
or the community as whole wants,
from their use.
Appraisal Methods.
After a discussion of the chief
location and market factors bearing
on urban real estate. together with
methods for their analysis, the sub
sequent chapters of the book are
devoted to real estate appraisal
methods, financing policies, manage
ment techniques. building and sub
dividing methods, marketing prac-
tices and control devices.
DR.. Weimer and Mr.. Hoyt 60 ahead
to explain that market forces are
associated chiefly with the COM
petition growing out of the pur-
chase, sale, leasing and financing
Of real properties. Specifically, they
perform the functions of making
adjustments to short-run changes
in requirements, adjusting supplies
Of space to changed requirements
over longer periods of time and
determining land uses.
THE various considerations aris-
Ing from location and market fac
tors ulderlie the principles which
explain practices associated with the
valuation, production, financing.
marketing and management of
urban real estate" the authors say
They are also significant in the
development of the programs for
its regulation and control"