University of Virginia Library

Property Costs

The first consideration in the problem of
high rents is the cost of land around
Charlottesville. James M. Marshall, one of the
more prominent landlords in dealings with
University students, offered the city's zoning
ordnance as a major factor in rising property
values.

According to Mr. Marshall, Charlottesville's
zoning ordnance, by restricting the areas for
apartment use, created a scarcity of land,
jacking up land prices. As an example, he
pointed out that two years ago, before zoning,
real estate went for about 65 ¢ per square foot.
Today, with zoning, the price is about $1.20
per square foot.

Another reason for high land prices, one
local lawyer suggested, is that, with the
increased desirability of living in Charlottesville,
several local speculators are snatching up land
here for "rich Yankee" interests.

Once the land is acquired, a building must be
constructed. By this time, the perspective
apartment owner must apply for the first, or
second mortgage on their properties, saying
that the cost of financing construction of
apartments is too high to be born by a single
landlord.