am & Britton, in the area between Conant and Parkcrest Streets near Woodruff venue. Getting back to our rental situation-last fall a local firm made a careful surof rental vacancies in the city. They reported 3,836 vacancies, which repreits a factor of 4 percent of our total housing which, at the end of 1950, numed 95,417 units. his also represented a 41-percent increase in housing vacancies since the manager's survey in October of 1949, which served as the basis for rent ntrol in Long Beach. spite of the large-scale recruitment at the Long Beach Naval Shipyard, we we that rental vacancies at the present time are as great-or possibly even r-due to the large number of persons that have purchased and moved to omes that are now so plentiful in the area. your further information we enclose clippings from the classified sections of o daily papers. You will note that nearly a full page in each is devoted to listings. actors considered, we are certain that rent controls in this area are wholly sary and that private enterprise is well able to meet any and all housing ments that may arise. Any effort to place rent controls in this locality at e, or to build Government housing or subsidized low-rent housing would ious blunder. ncerely yours, LONG BEACH CHAMBER OF COMMERCE. RENTAL CONDITIONS IN PORTLAND, OREG., SINCE DECONTROL OF RENTS, DECEMBER 29, 1950 REPORT OBTAINED BY A QUESTIONNAIRE SUBMITTED TO OWNERS OF RESIRENTAL PROPERTIES COVERING RENTS, VACANCIES, AND RENTAL HOUSING (Compiled by Oregon Apartment House Association) FACTS AT A GLANCE p only 9.4 percent. ially more rental accommodations available. pkeep and maintenance of rental properties. nd owner relationship improved. DECONTROL OF RENTS IN PORTLAND, OREG. ents were decontrolled in Portland, Oreg., December 29, 1950, by liter Tighe E. Woods, acting upon a resolution of the Portland provided in the Housing and Rent Act of 1950. umerous and lengthy hearings on rent decontrol by the City land, beginning in October 1949, until its final decision termirols on November 22, 1950, it was stated by proponents of controls that serious consequences would result if rent ceilings Among other things it was stated that "rents would double," Frocket," and that a serious economic dislocation would face in rented quarters. ng to examine the record since rents were decontrolled in n December 29, 1950, and to find out whether or not the dire have come to pass. rmine just what would happen after rent ceilings were lift Oregon Apartment House Association, representing some property who operate approximately 10,000 rental unit k the responsibility of setting up an investigating comm to cooperate in the transition of rent control to a free re ne reporting service was retained and a telephone num the press inviting tenants to report excessive increases tee was later joined by a similar committee from the Po Council and personal investigation were made jointly b representatives of the two organizations. Conclusions reached by both organizations were that there were few cases of excessive rent increases. These were confined mostly to older houses and rundown housing units in poor housing areas. A summary of conditions existing in Portland, Oreg., after 4 months of decontrol indicates the following developments: 1. Rents in Portland, Oreg., have leveled off at approximately 9.4 percent above controlled schedules in effect under Federal rent regulations To determine the results of decontrol of rents in Portland, Oreg., the Oregon Apartment House Association made a survey covering 4,402 rental units, requesting a statement of gross rental collections for December 1950 (under rent control) and May 1951 (4 months after decontrol) which revealed the following information: Gross monthly rent before decontrol (December 1950, 4,402 rental Gross monthly rent after decontrol (May 1951, 4,402 rental units) -- $226, 229. 12 239, 719. 82 9.4 2. A considerably greater number of rental accommodations, including houses, apartments, duplexes, housekeeping units, and furnished rooms are available to the renting public since decontrol A tabulation of classified rental ads taken from newspapers shows a progressive increase since decontrol, with listings exceeding those of prior weeks during the past 6 months. Counts of ads appearing in the two daily newspapers-the Oregonian and Oregon Journal-for 4 months in 1950 and 4 months in 1951 are as follows: Number of individual ads by month, 1950 (before decontrol): September October Total. Number of individual ads by month, 1951 (since decontrol): January February April Wanted to rent: Houses Apartments.... Total_ 62, 593 Increased number of ads since decontrol‒‒‒‒‒‒‒ 10, 433 As evidence of this trend, the Sunday Oregonian, of May 6, 1951, listed the following ads under "Wanted to rent" and "For rent": For rent: 11 1 11, 607 13, 016 13, 748 13, 789 Houses___. 15, 172 14, 345 15, 609 17, 467 52, 160 60 301 154 Total----- 32 Total__---- 515 In addition to the above, rental agencies in Portland, Oreg., who specialize in finding rental accommodations for tenants, report the following: Oregon Rentals, Inc., 315 Northwest Ninth Avenue, Portland, Oreg. (Mrs. Saelens, manager): "Most apartments for rent since I have been in rental business owners have to clean up apartments before tenants will rent. There is a decreasing number of lookers for apartments. Apartments available at practically any rent range." Raleigh Rentals, 206 Southwest Sixth Avenue, Portland, Oreg. (Earl Briggs, manager): "There is an oversupply of apartments. Tenants for apartments are much more choosy. Some shortage of houses for rent in lower rent ranges. Many apartment tenants, living in low frozen units under rent control, now buying houses. Rents for houses firm. Rents for apartments softening-apartment vacancies greatly increased last 60 days." DAS PROCTVser at expanding source of rental timme eluska ef housing Portland now has at approximate 118 C. rental leasing the greatest for man” years I: indicates crearly of supply and welland Will gerais effectively, and that rentals et present jeveis, except 11 newer Ligher priced renta, units which JZIMT IL SOŹter as vacancies increase * conditions and improvements to residential rental properties *ngine sent by the Oregon Apartment House Associatior to the 1. Meret 1951 it was learned that a report covering 27 apartment red that these owners of apartment houses expected to spend reg Leesments, repairs, and improvements to their properties. This •S THE TATTU unit covering €.476 rental units reporting. This Jen To II Telse due to the progressive vacany situation, which iLiT ve more occupied units to retail tenants. This is wegents of decontro, resulting in an increase in sales of equipment of labor in the Portland area. Tii GENERAL CONCLUSIONS f Government rent controis in Portland, Oreg.. has set in motion mentioned in this report which tend naturally to keep rents ontrol. & competitive rental market in which owners are seeking tenants *s having to act immediately to secure living space. The result d cleaner accommodations are being offered. Owners are begincessary to clear up and improve their rental units, both to hold end to attract new tenants to vacant accommodations. This er tradesmen who cater to residential owners in supplying labor, ipment for rental property. A better relationship between tenants and owners is evident. Tenants who are dissatisfied have an opportunity to find other quarters, while owners have the right of selection in maintaining occupancy in their properties. Decontrol of rents has removed inequities between tenants in rent values so that all can be placed on a fair and equitable basis. We believe that residential rental owners of Portland have maintained a commendable restraint since decontrol of rents in Portland, Oreg. Comments editorially by Portland's two metropolitan newspapers indicate this fact. In an editorial on March 15, 1951, the Oregon Daily Journal stated: "Portland's landlords have shown considerable discretion since rent ceilings were removed, * * *." The Portland Oregonian in an editorial dated March 15, 1951, stated: "Portland's experience with decontrol has been generally satisfactory. Some instances of 'gouging' have been reported, but the great majority of landlords have shown laudable restraint in raising rents * * *"1 It is extremely discouraging to those who believe in free enterprise to have a law enacted, general in its provisions, which might enable the head of some Federal Government agency interested in building up his own organization or bureau to impose unnecessary controls upon areas where such controls are not needed just because there are some areas in which controls and restrictions might be needed. While rent controls in some areas where there have been extreme shortages of housing facilities may have been beneficial to the particular tenants who have been secure in rentals far below the parity of other commodities, rent control in itself has always caused a shortage of rental units and could never help cure such a shortage in defense or war effort communities where any such shortage exists. Rent controls have tended to increase the housing shortage by permitting people to occupy more space than they need at a price far below the parity of other commodities. We believe that where extreme housing shortages exist in areas designated by the Government for promotion of its war and defense program of production, such shortage can only be overcome either by the Government providing the needed housing itself to meet the emergency or by removing the shackles from free enterprise and providing the incentive for private construction in such areas without the probability of losing its investment. To continue governmental controls when and where they are not needed tends to weaken the faith of the people in their own Government. It is a strange philosophy under which subsidies are given to encourage production of food and other essentials and at the same time inflicts penalties and restrictions upon those providing shelter where the demand is in excess of the supply for such shelter. The CHAIRMAN. Mr. Vanderslice, I suggest you go right ahead at this time. STATEMENT OF R. L. VANDERSLICE, CHAIRMAN OF THE EXECUTIVE COMMITTEE, NATIONAL APARTMENT OWNERS ASSOCIATION, EXECUTIVE DIRECTOR OF THE CHICAGO RESIDENTIAL HOTEL ASSOCIATION Mr. VANDERSLICE. Mr. Chairman, I am R. L. Vanderslice, chairman of the executive committee of the National Apartment Owners Association and executive director of the Chicago Residential Hotel Association. I would like to briefly summarize and supplement my prepared statement, and ask that it be entered in the record as though read. The CHAIRMAN. Without objection, that will be done." Mr. VANDERSLICE. I represent the class of properties referred to by the Housing Expediter before this committee last week as being of doubtful paternity. The CHAIRMAN. You are going to make this a part of the record? Mr. VANDERSLICE. Yes. I have only 31⁄2 pages, sir. The discriminatory control inflicted upon Chicago residential hotels is without justification and unprecedented in the history of Federal legislation. From 1947 up to the present, all hotels throughout the entire United States have been free of Federal rent control with the single exception of Chicago residential hotels, which were recom trolled on April 1, 1949. The principal reason which prompted Congress to decontrol all hotels in 1947 was because Congress recognized that hotels wris pa Early a service industry. The rapidly rising costs of hotel en AFE ed this class of rental accommodations wholly apart from this gary bare-space living accommodations without bodel see o is reason for decontrolling hotels in 1947 applied to all hudeb throughout the United States Including Calengo residential bide, Ma Chimano residential hotels are notes that ofle to firip 60agaande all stomary hotel services endt gema é service, Lavishing and Va Akk ng of lens, telephone and worstada, en tot 29 jak, vash vegbérfr #furnnure and frames and 24, ** very ***** mang facilities. W The CHAIRMAN. That is all right. I don't want to CH busi short. It is just one of those things. We have so many W Mr. VANDERSLICE. I appreciate that, Mr. Chairman. I represent the class of properties referred to by the Housing Exp diter before this committee last week as being of doubt fut paternity. I am appearing before your committee on behalf of the Chicago Rest dential Hotel Association to recommend that Federal rout control should be ended now with respect to residential hotels in the city of Chicago, which are the only hotels under Federal rent control in the entire country. A |