Realtor Income Exploration: Crowdsourced Funding for Agent Fees

Introduction 

The county saw a period of rapid change during the 1880s. People tried to stem the influx of immigrants from other parts of the world and there was a rush to settle in new lands. But the changes were not about to slow down. For this Realty Time Capsule, we will be looking at the events that happened in the 1890s. 

Three Key Points  

 

1.The United States Annexes the Hawaiian Islands: The annexation of Hawaii by the United States in 1898 marked a significant turning point in both political and economic landscapes, including the real estate sector. Before annexation, Hawaii was an independent kingdom with a unique culture and economy centered around agriculture, particularly sugarcane and pineapple plantations. However, with the annexation, the archipelago became a territory of the United States, setting the stage for profound changes, including in the realm of real estate. 

One immediate impact of annexation was the influx of American settlers and investors into Hawaii. This surge in population created a growing demand for housing, leading to the expansion of urban areas and the development of new residential neighborhoods. Real estate speculation boomed as investors sought to capitalize on the island’s newfound status and the opportunities presented by its strategic location in the Pacific Ocean.

Moreover, the annexation paved the way for the integration of Hawaii into the American economy. This integration brought increased investment in infrastructure projects such as roads, ports, and utilities, further driving up property values and spurring real estate development. Additionally, the establishment of military bases in Hawaii bolstered the local economy and provided stability, attracting more settlers and investors to the islands.

However, the annexation also had adverse effects on indigenous Hawaiians and their relationship with the land. The dispossession of native lands through forced sales and land seizures fueled social tensions and contributed to the decline of traditional Hawaiian communities. Real estate became a tool of colonization, with large tracts of land falling into the hands of American corporations and wealthy individuals, further marginalizing indigenous Hawaiians from their ancestral territories.

In summary, the annexation of Hawaii by the United States had a profound impact on the real estate sector, shaping patterns of urban development, property ownership, and land use on the islands. While it brought economic opportunities and modernization, it also brought displacement and social upheaval, underscoring the complex interplay between geopolitics, economics, and real estate dynamics.

2. Spanish–American War:   The Spanish-American War of 1898 was a very important milestone in American history, with far-reaching consequences that extended beyond the battlefield, including its impact on real estate. The war, fought between the United States and Spain, was largely fought over Spanish colonies in the Caribbean and Pacific, including Cuba, Puerto Rico, Guam, and the Philippines. The outcome of the war significantly altered the geopolitical landscape and had profound implications for real estate markets, both domestically and abroad. 

One immediate impact of the Spanish-American War was the acquisition of new territories by the United States. Following the war, Spain ceded control of Puerto Rico, Guam, and the Philippines to the United States, while Cuba gained independence but became a de facto protectorate of the U.S. These acquisitions expanded the territorial boundaries of the United States and opened up new opportunities for real estate investment and development. 

In Puerto Rico and Guam, the American takeover led to increased investment in infrastructure, including the construction of roads, ports, and public utilities. This investment stimulated economic growth and urban development, driving demand for real estate in both residential and commercial sectors. American settlers and investors flocked to these territories, further fueling the expansion of real estate markets. 

Similarly, in the Philippines, the American occupation brought significant changes to the real estate landscape. The establishment of American military bases and administrative centers spurred urbanization and the development of new towns and cities. American businesses also invested heavily in agriculture and mining, leading to the expansion of rural real estate markets. 

However, the impact of the Spanish-American War on real estate was not limited to the newly acquired territories. Domestically, the war fueled economic growth and prosperity, which translated into increased demand for real estate across the United States. The expansion of American influence overseas created new opportunities for trade and investment, driving up property values in port cities and other strategic locations. 

The Spanish-American War had a profound impact on real estate, reshaping property markets both domestically and abroad. The acquisition of new territories by the United States opened new frontiers for investment and development, while also fueling economic growth and prosperity at home. 

3. New States and Territories: The late 19th century witnessed significant expansions and developments in the United States, particularly in the realm of real estate, with the organization of the Oklahoma Territory, the admission of Idaho as the 43rd U.S. state, and the admission of Wyoming as the 44th U.S. state. Each of these events had distinct impacts on American real estate markets, reflecting the broader trends of westward expansion, territorial organization, and statehood. 

The organization of the Oklahoma Territory in 1890 marked a pivotal moment in American history, as it opened up vast tracts of land for settlement and development. The Oklahoma Land Run of 1889, in which thousands of settlers raced to claim homesteads, epitomized the fervor and excitement surrounding land acquisition in the West. The establishment of the Oklahoma Territory provided a legal framework for land ownership and facilitated the transfer of property rights, laying the foundation for real estate markets to flourish in the region. 

Similarly, the admission of Idaho and Wyoming as states in 1890 and 1892, respectively, had significant implications for real estate markets in the Mountain West. With statehood came increased political stability, legal certainty, and access to federal resources, all of which bolstered confidence among investors and developers. The new states also benefited from the expansion of transportation networks, such as railroads, which facilitated the movement of people and goods and spurred economic growth. 

The influx of settlers into the Oklahoma Territory, Idaho, and Wyoming fueled demand for real estate, leading to the rapid development of towns, cities, and agricultural lands. Speculators, homesteaders, and entrepreneurs vied for control of valuable parcels, driving up property values and reshaping landscapes. In urban areas, the growth of industries such as mining, agriculture, and ranching spurred the construction of residential, commercial, and industrial properties, further stimulating real estate markets. 

Overall, the organization of the Oklahoma Territory and the admission of Idaho and Wyoming as states played crucial roles in shaping American real estate markets in the late 19th century. These events not only expanded the nation’s territorial boundaries but also opened new frontiers for investment, settlement, and development, leaving a lasting imprint on the American landscape. 

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Headline Real Estate News Stories In 1890 –1899 

 

On the evening of 15 February 1898, the USS Maine exploded and sank in Havana Harbor.  268 sailors perished in the incident. The explosion of the USS Maine was a catalyst for the Spanish-American War. The incident fueled anti-Spanish sentiment in the United States, leading to public outcry and demands for intervention. “Remember the Maine, to Hell with Spain!” became a rallying cry. The explosion heightened tensions between the two nations, ultimately resulting in the United States’ declaration of war against Spain. This event stirred nationalist fervor, galvanizing public support for military action and shaping American perceptions of foreign policy and interventionism. 

Another major headline news for the period was the Wounded Knee Massacre of 1890. It was a tragic event that profoundly impacted society. Occurring at the end of the American Indian Wars, it marked a brutal culmination of tensions between the Lakota Sioux and the U.S. government. The massacre, where U.S. troops killed approximately 150 Sioux, including women and children, highlighted the systemic oppression and violence against Native Americans. It further entrenched negative stereotypes and attitudes towards indigenous peoples, perpetuating injustices and contributing to ongoing marginalization. The massacre served as a stark reminder of the consequences of colonialism and the need for reconciliation and justice. 

 

What Historic Real Estate Events Shaped 1890 -1899 

 

The Reconstruction had a profound effect on the events that took place in the 1890s. It was during that period that the United States gained confidence as a nation to compare itself to the powerful nations of the world. The belief in Manifest Destiny as well heavily influenced the thinking of Americans during the late 19th century. It was the belief that America was destined to gain dominion over North America and when they reached the shores of the west coast, it would go beyond. 

Economic Factors, Supply, and Demand  

Andrew Carnegie’s consolidation of his various businesses into the Carnegie Steel Company in 1892 revolutionized the American economy. By vertically integrating operations, he streamlined production, reduced costs, and increased efficiency. Carnegie’s innovative approach to steel manufacturing, coupled with aggressive expansion and technological advancements, catapulted the United States to the forefront of the global steel industry. The Carnegie Steel Company became the largest steel producer in the world, fueling industrial growth and infrastructure development nationwide. Carnegie’s business practices set a precedent for corporate consolidation and contributed to the rise of modern capitalism, shaping the trajectory of the American economy for decades to come. 

The Panic of 1893 was a severe economic crisis that had a profound impact on the American economy. Triggered by a series of bank failures and the collapse of railroad investments, the panic led to widespread business closures, mass unemployment, and a sharp decline in industrial production. The crisis was exacerbated by a contraction in the money supply and a run on gold reserves. It sparked a prolonged period of depression, marked by deflation, bankruptcies, and social unrest. The Panic of 1893 revealed the vulnerabilities of an economy heavily reliant on speculative investments and uneven development, prompting calls for financial reform and regulation.  

Government Policies and Interventions 

In 1893, the U.S. Marines intervened in Hawaii, effectively facilitating the overthrow of the Hawaiian monarchy and the government of Queen Liliuokalani. This action was orchestrated by a group of American and European businessmen and politicians who sought to protect their economic interests, particularly in the sugarcane industry. The Marines’ intervention, coupled with diplomatic pressure from the United States, led to the establishment of a provisional government and, ultimately, the annexation of Hawaii by the United States in 1898. The overthrow of Queen Liliuokalani marked a significant chapter in Hawaiian history, symbolizing the erosion of indigenous sovereignty and the impact of imperialist ambitions. 

Demographic Factors 

The census of 1890 profoundly influenced American real estate by providing crucial demographic insights. Urban planning and infrastructure investment were guided by data on population growth, migration patterns, and housing demand. Policymakers and developers used this information to allocate resources effectively and plan the construction of residential neighborhoods and public amenities. 

Furthermore, the census data informed marketing and development strategies by revealing homeownership rates, household size, and income levels. Real estate investors targeted specific demographic groups, tailoring their projects accordingly. Zoning regulations were also influenced by census data, determining land use and development types in different areas, thereby impacting property values and market dynamics. 

The 1890 census was pivotal in shaping real estate markets through informed decision-making, guiding urban development, investment strategies, and regulatory policies based on demographic trends and population characteristics. 

Societal Preferences and Trends 

The Temperance movement of the 1890s was a social and political campaign aimed at reducing or eliminating the consumption of alcohol. Fueled by concerns over the negative effects of alcohol abuse on individuals, families, and society, the movement gained traction during this period. Led by organizations such as the Women’s Christian Temperance Union (WCTU) and the Anti-Saloon League, advocates of temperance argued for legal restrictions on the sale and consumption of alcohol.

 

The Temperance movement had a profound impact on American society in the 1890s. It mobilized a broad coalition of supporters, including women’s groups, religious organizations, and social reformers, who championed the cause through grassroots activism, public education campaigns, and lobbying efforts. As a result, many states enacted prohibition laws, leading to the closure of saloons and liquor stores across the country. 

The movement also influenced cultural norms and attitudes towards alcohol consumption, promoting the idea of temperance as a virtue and stigmatizing excessive drinking. Proponents of temperance framed alcohol abuse as a moral failing and a threat to public health and social order, contributing to a broader shift towards sobriety and moderation in American culture. 

Technological Innovations 

In 1895, George B. Selden was granted the first U.S. patent for an automobile, marking a pivotal moment in automotive history. Selden’s patent covered a “road engine” powered by gasoline, which laid the groundwork for the development of the modern automobile industry. While Selden himself did not manufacture cars, his patent became a point of contention among early automobile manufacturers, leading to legal battles over patent rights. Ultimately, Selden’s patent expired in 1912, paving the way for widespread innovation and competition in the burgeoning automotive market, and shaping the future of transportation worldwide. 

Environmental Factors

The founding of the Sierra Club in 1892 marked a significant milestone in the history of environmental conservation in the United States. Established by conservationist John Muir and a group of like-minded individuals, the Sierra Club aimed to protect and preserve the natural landscapes of the Sierra Nevada mountains in California. Initially focused on advocacy for Yosemite National Park, the club quickly expanded its scope to include broader environmental issues such as wilderness preservation, national park creation, and sustainable land management practices. Through grassroots activism, lobbying efforts, and public education campaigns, the Sierra Club became a leading voice for environmental conservation, advocating for the establishment of new national parks and monuments, the protection of endangered species, and the promotion of sustainable energy policies. Over the decades, the Sierra Club has grown into one of the largest and most influential environmental organizations in the world, playing a key role in shaping environmental policy and raising awareness about the importance of conservation.

Cultural Factors 

Thomas A. Edison’s completion of the first motion picture studio in West Orange, New Jersey, in 1893 marked a transformative moment in the history of cinema. The studio, known as the Black Maria, was the world’s first purpose-built film production facility, equipped with innovative technology for recording and projecting moving images. This milestone laid the foundation for the modern film industry, enabling the mass production of motion pictures and the commercialization of cinema as a form of entertainment. Edison’s studio paved the way for the development of filmmaking techniques, artistic expression, and storytelling, shaping the cultural landscape of the 20th century and beyond. 

In 1892, at the YMCA in Springfield, Massachusetts, the first official basketball game is played. This was a significant event that would resonate even today when professional basketball has become a global phenomenon. 

Transportaion and Infrastructure 

The Wainwright Building, completed in 1891 in St. Louis, Missouri, is celebrated as a pioneering skyscraper that significantly influenced modern architecture. Designed by the renowned architect Louis Sullivan in collaboration with Dankmar Adler, the ten-story structure exemplifies the principles of the Chicago School of Architecture. Sullivan’s design philosophy, often summarized by his famous dictum “form follows function,” is evident in the building’s elegant, yet practical, aesthetic. 

The Wainwright Building’s revolutionary design features a three-part vertical composition that would become a template for future skyscrapers. The tripartite division consists of a clearly defined base, shaft, and capital. The base includes large plate-glass windows for retail spaces, while the vertical piers in the shaft draw the eye upward, emphasizing the building’s height. The capital is adorned with intricate terra cotta ornamentation, showcasing Sullivan’s skill in integrating ornamental details with structural form. 

This building is considered one of the earliest true skyscrapers, not merely because of its height but due to its structural innovation and aesthetic coherence. It employed a steel-frame construction, which allowed for greater height and more expansive windows than traditional load-bearing walls. The Wainwright Building stands as a testament to the transformative period in architectural history, bridging the gap between the ornate designs of the 19th century and the functional modernism of the 20th century. 

Closing This Capsule

That closes our Realty Time Capsule for the 1890s and the next step we will be going through the year 1900. We will be closing an eventful century!

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

History of Spanish Spanish-American War:

History of Annexation of Hawaii: