Florida land boom of the 1920s

The Florida land boom of the 1920s was the first real estate bubble in Florida. It happened between 1924 to 1926. It attracted investors from all over the United States and around the world.[1] It left behind new properties in Florida. Some of these properties were racially segregated for many years.[2][3]

The main cities affected by this economic bubble were Miami Beach, Coral Gables, Hialeah, Miami Springs, Opa-locka, Miami Shores, and Hollywood, Florida. It also left behind failed projects such as Aladdin City, the original plan of Boca Raton, Chevelier, Fulford-by-the-Sea, Interocean City, Isola di Lolando, Okeelanta, Palm Beach Ocean, Poinciana, and Sun City.

The economic bubble made new cities.[4] It ended in a financial collapse that ruined many investors and property owners. It made the local economy worse for many years after.

Background and history

Devastation after the Miami hurricane of 1926

The economic growth in the 1920s, along with a lack of knowledge of weather conditions and bad building standards started it.[5][6] People outside of the United States pictured Miami as a tropical paradise. More tourists began to visit Miami or immigrate to Miami.[7][8]

By 1925, investors were beginning to read negative articles about Florida investments. Forbes magazine wrote that Florida land prices were based on no real land value.[9] The Internal Revenue Service began to say that the economic bubble was as a big sham operation. In October 1925, the main railroad companies in Florida stopped sending many products to the state.[10] Also in 1925, Florida began to pass laws to control real estate. One law was that salespeople had to have licenses and offices. This caused more demand for office spaces.[11]

The city's image as a tropical paradise began to crumble. In May 1926, the boom was about to end.[10] The 1926 Miami hurricane ended the boom, and the 1928 Okeechobee hurricane completely stopped it.[12][13][14]

References

  1. ↑ Ballinger, Kenneth. Miami Millions: The Dance of the Dollars in the Great Florida Land Boom of 1925. Miami, Florida: The Franklin Press. p. 5. Retrieved 17 July 2021.
  2. ↑ Ellis, Guy Worthington; Lincoln Road Association; Egbert, Jane (January 1941). "Lincoln Road: The World's Most Beautiful Shopping Center". No. VII:5. The Florida Teacher. p. 18.
  3. ↑ Kleinburg, Howard; Moore Parks, Arva (October 1, 1994). Miami Beach: A History (First ed.). Centennial Press. pp. 136–137. ISBN 978-0962940231.
  4. ↑ Rapp, Donald. Bubbles, Booms, and Busts: The Rise and Fall of Financial Assets. Springer. p. 164.
  5. ↑ Library of Congress. "Devastation in Miami from the 1926 Hurricane". Publisher: United States of America. Retrieved 3 July 2022.
  6. ↑ Barnes, J. (October 14, 1998). Florida’s Hurricane History. The University of North Carolina Press. p. 330. ISBN 978-0807824436.
  7. ↑ Cooke, Bill (March 10, 2016). "Remembering Miami Beach's Shameful History of Segregation and Racism". Miami New Times. Retrieved 3 July 2022.
  8. ↑ Simonoff, Harry (January 12, 1951). "Oscillation Of Anti-Semitism in Greater Miami". The Jewish Floridian. p. 3.
  9. ↑ Florida in the 1920s
  10. ↑ 10.0 10.1 Turner, Gregg (2005). Florida Railroads in the 1920s. Charleston: Arcadia Publishing.
  11. ↑ Clark, James C. (October 28, 1990). "UNDERWATER LOTS! SWAMP CITIES! $10 DOWN! WELCOME TO FLORIDA, THE LAND OF SUNSHINE, SURF AND SCAMS". Orlando Sentinel (Digital). Archived from the original on 24 May 2022. Retrieved February 25, 2022.
  12. ↑ McIver, Stuart (September 19, 1993). "1926 Miami: The blow that broke the boom". South Florida Sun-Sentinel. Retrieved 3 July 2022.
  13. ↑ Barnes, J. (May 21, 2007). Florida’s Hurricane History. The University of North Carolina Press. p. 330. ISBN 978-0807858097.
  14. ↑ Evans 2011, pp. 2–6.

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