Realtor Income Exploration: Crowdsourced Funding for Agent Fees

Introduction:

For our last Time Capsule, we saw a nation welcoming its new leader and adopting a new Constitution. The United States has finally taken on the identity that would see it expand and become a major power. In terms of real estate, the country was still exploring its vast stretches because it would be some time before it reached its natural borders. Today we will be looking at the things that had an impact on shaping the real estate reality for Americans in 1790. This is your Real Estate Time Capsule.

Three Key Points

1. The Southwest Territory Is Created: The Southwest Ordinance created the Southwest Territory from lands that were ceded to the United States by the state of North Carolina. The creation of the Southwest Territory came after the efforts of the people living in the area to create their political entity. Towards this end, they came up with other entities which eventually failed. A few years later, the Southwest Territory will be admitted as the state of Tennessee but for now, there’s still a great deal of work to be done.

2. The First Census: 1790 was also significant because it marked the first time that an official census was taken in the new country. Officially, the population of the United States at the time of the census was 3,929,214 inhabitants. Although there were skeptics as to the result of the census, it was significant because it was the first time that an attempt to take into account the population of the United States. That population will be a significant factor in the development of the real estate industry.

3. Residence Act: The Residence Act of 1790 was adopted by the United States government. The act was for the creation of a permanent seat of government for the United States. The law states that the site should be along the Potomac River. This act was responsible for creating Washington D.C. which will drive interest in the lands around the newly established city.

Headline Real Estate News Stories in 1790

There are a lot of headlines that made an impact in the year 1790 but the one which has the most impact on the real estate industry was the establishment of the Southwest Territory. That means more land was readily available for settlers to move in. It was part of the effort to expand the country into the rest of the continent.

What Historic Real Estate Events Shaped 1790?

The main event of 1790 was the establishment of the Southwest Territory and that came about because of the efforts of some residents of North Carolina. The creation of Watauga Association and the State of Franklin were earlier efforts to create a new political entity out of the area where they were living. While those efforts failed, they contributed towards the eventual creation of the territory and eventual state.

Economic Factors, Supply, and Demand

The vast majority of the American population at the time lived in rural areas. Many of those families depended on subsistence farming. The extra crops and produce that they had were mainly used to barter with other farmers and merchants. This means the demand for various commodities was not that high.

Government Policies and Interventions

The main government policy that had an impact in 1790 was the Southwest Ordinance which created the Southwest Territory. This ordinance was one of the laws which became part of the expansion of the country.

Demographic Factors

The population of the United States back then was 3,929,214 inhabitants in total according to the first-ever census. However, only 5.1% of the American population lived in centers that had more than 2,500 people. This means a vast majority of the population still lived in rural areas.

Societal Preferences and Trends

The societal trend back then was still for people to live off farms and their plots of land. Most American households back then were self-sufficient and would only require infrequent trips to the local store for supplies that they did not produce.

Technological Innovations

The year saw the establishment of the U.S. Patent System, which is largely seen as the most favorable in the world for inventors. Samuel Hopkins was the first person to be issued a patent for his new method of making potash. The production of potash was instrumental in improving agriculture, which in turn drove the demand for more land for farming.

Environmental Factors

The vast part of the continent of which the United States was part was at the time largely unexplored and untouched. It would take decades before much of the continent would be mapped out properly.

Transportation and Infrastructure

In 1790, horseback was still the primary mode of transportation over long distances. Carriages, or vehicles for more comfortable riding are rarely seen outside of cities and very large towns, It would take a while before proper roads would be built to accommodate more comfortable traveling.

That concludes the Realty Time Capsule for the year 1790. It was a promising year for the fledgling nation that is setting itself for a good start. A new constitution to put it on the right track and a new territory that expands the land it covers were highlights of the year. Watch out for our next Realty Time Capsule!

For a deeper understanding and look into these topics check out these titles:

Southwest Territory: