Evening star., 1948-05-30
Covenant Rule Fails
To Spur Real Estate
Market, Analyst Says

buyers thus far have avoided hasty
action that might have hurt prop
erty values following the Supreme
Court decision against judicial en-
forcement of racial restrictive COW
enants. Rufus S. Lusk, real estate
analyst, said yesterday.
He reported his study of the realty
picture here showed no rush by
Negroes to buy homes in fringe"
residential sections from which they
previously had been excluded by
covenants.
Declaring, however, that the de-
cision has left in its wake an ex-
tremely confusing Situation Mr.
Lusk said:
The solution of the problem calls
for intelligent and constructive lead
ership on both sides. White owners
should not become hysterical when
approached by brokers who in some
ceases are already trying to capital
ize on the threat of an invasion Of
certain white neighborhoods. Col
ored brokers should discourage any
thing in the nature Of stampede
by their clients into white areas.
Urges Expansion Be Gradual.
IF the process of colored expan-
sion is allowed to follow its natural
course. without any artificial stimuli,
1t will be slow one and the impact
Of the decision on Washington real
estate values will be minimized"
Mr. Lusk, writing in the current
issue of his Washington Business
Review" said he did not deal with
the sociological Implications of the
decision or the civil rights issues
involved
But there are certain factual
considerations that cannot be ig-
nored," he added "Rightfully' or
wrongfully, white people do not like
to live in close proximity to Negroes
Probably the converse is also true.
However. and deplore it as we
may, it still is an indisputable fact
that when Negroes move into a
white locality prices eventually be-
COME deprecated. The first family
or two moving in may have to pay
above the market to obtain a foot
hold. Thereafter, the pattern is
established, the whites gradually sell
out at constantly lowering prices,
and in matter of years the section
becomes a solidly Negro neighbor-
hood.
The Negro property owner is just
As vitality interested in maintaining
the value of his home or Investment
as the white owner. He does not
want to see his neighborhood de-
terioriate and his property depreci-
ate. Surely the mixed neighbor-
hood poses the same threats to the
Negro owner as it does to the white. ;"
Negro Areas Called Spreading
With Negro sections scattered
throughout the city. Washington is
particularly vulnerable" to such
property devaluat ton, Mr.. Lusk said
The spreading out process" by Ne
groes, he explained. could stem from
many different points at once.
Washington also has the largest
proportion of Negro population OF
any city north of the Potomac.
River and the Negro birth rate here
is considerably greater than that of
white, he noted.
Property values have not been
markedly affected in Washington
as yet by the court decision, Mr.
Lusk believes, because of the high
cost of real estate here and the
scarcity of available dwelling. Over
a long-term period, he said, Negro
population will spread faster into
areas heretofore white and the
prices in those areas and in ada
cent sections will be adversely af-
fected.
But the fact that people have
been paying almost any price for
any kind of housing will probably
temporarily offset to some extent
the depreciation in values that will
inevitably follow the courts opin-
lon he observed.
Georgetown is an exception to
tbs trend. Mr.. LuSk said.
Because Georgetown is quaint,
historic or smart to live in, white
purchasers are willing to pay out
raeeous prices. he commented,
Gradually. the Negro is moving out
of Georgetown and it is only a mat
ter of time until that locality be-
comes all white