The Waterbury Democrat., 1940-12-30

leased today.
 The survey, covering 237 cities, is made from confidential reports by the Associations member real estate boards. For the individual Ameri- can city the one big factor which is affecting the pattern of its ilnmedi- ate real estate activity and color ing the whole outlook for its real es- tate market for the coming year is the relation of that city to large scale activity in the national defense program. Effect of the defense ef- fort as it is already pushing and pulling both general business and urban land use is an important part of the story running through the confidential reports, made by local member real estate boards, which make up the survey. By that same token, new and large element of uncertainty in the outlook for in- dividual cities is, necessarily, l1ncer- tainty as to the way the program may develop in their direction.
 What Survey Shows.
 Present conditions shown by the survey are:
 A more active market than last year in 57 per cent of the cities, large and small, and market at least as Strong/aS last year in 89 per cent of the reporting cities.
 Sales prices per cent to 10 per cent above last years level in more than 8 third of the cities, and the same or higher than last year in 93 per cent of the cities.
 Supply of single-family dwellings definitely on the short side in 45 per cent of all the reporting cities, which is approximately the same condition found by the like survey of Q year ago, an indication that new home building is about bal ancing the expansion in home de- mand. Apartment shortage in 28 per cent of the cities, but 1T per cent still with an oversupply.
 Rents for single family dwellings, immobile through the years 1888 and 1899, are higher than last year in 45 per cent of the cities. Apart ment rents have moved up also, but less generally.
 E Financing costs still dropping in IT per cent of the cities, rising in only per cent of the cities. Capi- tai supply equal to or in excess of loans offering in 95 per cent of the cities. Rents in two-thirds of cities not yet high enough to justify investment building.
 te iDI Af tion shown in the reports between absorption of residential space and starching of the rent situation. But the survey asked specifically this key question: Are residential rents in your community sufficient to jus tify investment in rental housing at present construction coSts?" And only one-third of the cities replying said yes. Two-thirds of them said no.
 Emergency Defense Housing.
 Asked whether there will be need during the coming year for con- Struction of an emergency nature for defense workers, 75 per cent of the cities replying said no. But 25 per cent of these typical cities look for emergency building to be re- quiYed to house new populSt5Uri be- fore the year is out Some of them attempted to estimate the amount. Those communities, with a combined population of 7,782,954 people, esti- mated they would need as emer- gency housing total of 49,545 fam fly units. That would be one family pverhowing into emergency housing for every 40 families of present population.
 Asked to state any conditions which are seriously endangering the supply by private enterprise of any needed emergency housing, few cities listed any such conditions. Very many said there are none. Cited as serious deterrents were: Rising construction costs. Possible shortage of skilled labor" Qnd); Costs out of line with income. Un- certainty as to governmental activ- ity." (W. Val; Long outlook for private rental housing obscured by government-supported projects under way and contemplated. Pri- vate capital not available for emer- gency rental housing" (Md0; Be lief that need is a temporary one" CWash.)
 Need Greater Industrial Space.
 As to industrial real estate the forecast is for increased demand during 1941 in not quite half the cities of the country. It is the pre- diction in 49 per cent of the sur- veyed cities. The demand will be powerful enough to cause a price rise in one-third of the cities, the local observers predict in their con- fidential reports.
 Real estate selling prices are higher than last year at this time in S per cent of the cities, lower in only per cent, hold where they were in 57 per cent of the cities. The median rise is 10 per cent. A con-