14 COMMISSION ON BUILDING DISTRICTS 



values throughout the city. Market value for investment purposes is 

 always affected by the hazard of the business. Economic depreciation due 

 to unregulated construction and invasion by inappropriate uses has become 

 a hazard that must be considered by every investor in real estate. This 

 extra hazard increases the net earning basis required to induce investment, 

 and consequently lessens capital values throughout the city. Whatever the 

 capitalized amount that may be properly charged to the economic deprecia- 

 tion hazard, it is certainly a huge burden and one that affects not only the 

 individual owners of real estate throughout the city but the savings and 

 other large lending institutions, the municipal finances and the general 

 welfare and prosperity of the whole city. 



There is an intimate and necessary relation between conservation of 

 property values as here proposed and the conservation of public health, 

 safety and general welfare. Throughout a city the areas in which values 

 have been depressed by the invasion of inappropriate uses or lack of 

 building control as to height, courts and open spaces, are the areas in which 

 the worst conditions as to sanitation and safety prevail and where there 

 is the greatest violation of the things essential to public comfort, con- 

 venience and order. The decline in property value in such districts is merely 

 an economic index of the disregard of essential standards of public health, 

 safety and convenience in building development. Moreover, a depressed 

 district of changing occupancy is almost always a district in which un- 

 wholesome home and work conditions prevail. The old building altered to 

 suit a new use is usually very faulty in light, air and sanitation. Declining 

 values make it difficult or impossible to enforce proper standards. These 

 depressed districts create the most difficult and perplexing problems in the 

 establishment and administration of housing and factory regulations. 



Moreover, the enormous losses sustained by owners of loft and tene- 

 ment property will be a serious handicap to the provision of future build- 

 ings to house the increasing population and the rapidly expanding indus- 

 trial development. This may become a very serious matter from the point 

 of view of cheap and adequate housing and safe and convenient factory 

 space. 



With some eight billions already invested in New York City real estate 

 and the certainty of added billions in the coming years, a plan of city 

 building that will tend to conserve and protect property values becomes 

 of vital importance not only to individual owners but to the community 

 as a whole. Why not protect the areas as yet unspoiled and insure that 

 the hundreds of millions that will be spent in the improvement of real 

 estate in the coming years shall contribute to the solid and permanent 

 upbuilding of this great city. Permanence and stability can be secured 

 only by a far-sighted building plan that will harmonize the private interests 

 of owners and the health, safety and convenience of the public. 



