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Show The Utah Enterprise Review , January 26, 1977 Page 18b Apartments- - Real Estate Sales Flat Somethings Gotta Give difference over last week marked the total volume of real estate sales for the week ending Jan. 21. 171 properties sold for a total of $7,459,758, Very by Chuck Akerlow There is a combination of factors which at once suggests a great apartment building boom ahead while also characterizing as foolish anyone who would build apartments in Salt little Lake County. The reason for the dichotomy is related to low vacancy rates, low rents and high construction costs. Almost all surveys University Bureau of Economic show and Business Research, portal surveys, etc. apartment vacancy rates in Salt Lake County to be extremely low somewhere between 1.7 and These low rates are due primarily to the higher costs of home purchases and the modest amount of new apartments which have been added to the inventory in the last two years. Until recently, the rents have lagged. Rents in Salt Lake 0 County languish behind other similar markets by per units. But, as the vacancy rate gets month for tight the pressure to move rents up mounts. Alternatively, more and more landlords are cutting their costs by making tenants pay their own utilities or reducing whicli represents an average sale price of $43,624.32. 147 residential properties sold for $633,485, for an average of $43,084.75; 12 apartments and duplexes sold for an average sale of $72,004.17; two commercial peices sold for a total of $25,000; nine vacant lots sold with an average sale of $20,250. One farm sold for $55,000. MORTGAGE RATES 3. FIIA 8.0 V4 VA 8.0 S30-S4- two-bedroo- m the services provided. The cost of a new home and the monthly bite of the mortgage payment in the cash flow of a young couple also sets the stage for higher rents. The average mortgage payment is almost twice the average rental payment and that fact has got to favor increasing rents. So the state seems to be set. Yet why arent developers market? rushing into the multiple-famil- y The fact is that even though vacancy rates are down, rents have not moved up. But land costs and construction costs have, which virtually wipes out any profit margin. A builder has to either build cheaply or settle for no cash on cash return until rents increase. Neither avenue is a happy prospect. So, it is not surprising that an apartment building boom is not on. And I dont expect to see a banner year in apartment house construction in 1977. The risks are still disproportionate to the returns. But the market cant stay that way for long. Something's gotta give sooner or later. And what will give will be rents. New City Business Licenses Continued from page 17b Baking Co., 2700 S. 2841 W.; whsle bakery distribution. ri School of Salt Lake 1, 2806 E. 3300 S.; 13875-Met- z Royal Palace Restaurant of Utah, 249 S. 4th E.; 13886-Montesso- school. 13976-Gepctt- Mule Hollow os Santa Claus Rd., Big Cottonwood; restaurant. Foodtown, 3960 Highland Dr.; grocery. 14084-Emigrati- on 13977-Th- e Salvage Shop, 3514 S. 6000 W.; grocery salvage. Wind, A Cafe, 3343 E. 3300 S.; restaurant. 14009-Cor- n Dog Factory, 2430 E. 7000 S.; fast foods. 14004-Ea- st 14207-Sunshi- Pre-Scho- ne 663 E. 12200 S.; 14774-R- B pre-schoo- ol, S. 3075 E., vending com14068-Rick- Lounge, 4242 ys S. State; tavern. Pizza Palace 040, 2020 E. 3300 S.; pizza 14576-Cassid- ys restaurant. 14800-D- r. Richard L. Curtis, tistry. Parts Co., Redwood 4879 S. Rd.; auto ne parts. Drilling, 4333 S. 900 E.; well drilling. 14986-Continent- al Education Service, 4835 Highland Dr.; tutoring. 15001-Intera- c ni Country, Utah; Jefferson E. LeCates, 76 High Country Road, High Country, Utah. H. Investment Co., 777 East South Temple, Mildred H. Bradshaw, 777 East South Temple Apt. 5A; G. Blair Bradshaw, 1948 Drive; Don F. Bradshaw, 2155 East 900 South, Lau-relhur- st SLC, Ut. Ford Partnership, 1229 East 1st South, Frank B. Creer, 1229 East 1st South; Sara Creer, 1229 East 1st South, SLC, Ut. 12598-A.Investment Co., K. Clawson and Morris Robert E. Anderson, SLC, Ut. 12599-T.W.- I. Limited, Salt Lake City, Utah; Trans-We12597-Spanis- DDS, 3534 S. 6000 W.; den14933-Geniu- Koi Enterprises, 615 Newhouse Bldg., 10 Exchange Place; John N. Baird, Box 794, Honlulu, Hawaii; Joy H. Barid, Box 794, Honolulu, Hawaii. 12595- - Golden West Films 76 High Countiy Road, High 12594-Keo- 12596-B.M.- l. Distributing, 3131 pany. Partnerships h C. st Investment Corp., Martin VanderVeur, Pres. Around the World Murdock Travels you! Air Reservations & Tickets Accident & Baggage Insurance & Tickets Travelers Checks Steamship Bookings Train Reservations & Tickets Bus Tickets Group Tours Hotel Reservations Car Purchase for European Delivery Independent Tours Car Rentals Passport & Visa Assistance Expert Counsel on any and all phases of travel with one convenient stop at no extra cost Salt Lake Provo 521-785- 0 377-970- 0 MURDOCK TRAVEL |