Introduction
The 1870s was a period of recovery and reconstruction for the United States as we saw from our last time Realty Time Capsule. Now, we will be taking a closer look at the 1880s and the unique challenges and changes that this decade will pose for the United States.
Three Key Points
1.The 1882 Immigration Act: The 1882 Immigration Act, also known as the Chinese Exclusion Act, was a turning point in American immigration policy, shaping both the nation’s demographics and its real estate landscape. Signed into law by President Chester A. Arthur, it marked the first significant restriction on immigration in United States history, targeting specifically Chinese immigrants.
The Act effectively prohibited the immigration of Chinese laborers, making it illegal for Chinese nationals to enter the country for ten years and preventing Chinese immigrants already residing in the U.S. from becoming naturalized citizens. This legislation emerged from a combination of economic anxieties, racial prejudice, and political pressures. Many Americans, particularly on the West Coast where Chinese immigrants were prevalent, feared job competition and viewed Chinese laborers as a threat to their livelihoods.
One of the immediate impacts of the Act was on the real estate market, especially in urban areas with large Chinese populations such as San Francisco and New York. The sudden decline in Chinese immigration led to a decrease in demand for housing and commercial properties traditionally occupied by Chinese immigrants. As a result, property values in these areas plummeted, and landlords struggled to find tenants, leading to significant economic disruptions.
Beyond its economic ramifications, the Chinese Exclusion Act had profound social consequences. It reinforced discriminatory attitudes towards Chinese immigrants and exacerbated racial tensions. Chinese communities faced increased hostility and violence, with instances of discrimination ranging from job discrimination to physical attacks.
Moreover, the Act set a precedent for future immigration policies, legitimizing the idea of restricting immigration based on nationality or ethnicity. Subsequent legislation would further restrict immigration from other parts of Asia and later from Southern and Eastern Europe.
The 1882 Immigration Act, with its focus on excluding Chinese immigrants, had far-reaching effects on American society and the real estate market. It not only reshaped the demographics of the nation but also entrenched discriminatory practices that would persist for decades to come, leaving a legacy on immigration policy and social relations in the United States.
2. Land Rush of 1889: The Land Rush of 1889 stands as one of the defining moments in American history, particularly in the expansion of the western frontier and the shaping of both the real estate market and society at large. This event, also known as the Oklahoma Land Run, was spurred by the U.S. government’s decision to open up a vast tract of land in present-day Oklahoma for settlement.
The Homestead Act of 1862 and subsequent legislation had already laid the groundwork for westward expansion by offering land grants to settlers willing to cultivate and develop previously unsettled territories. However, the Land Rush of 1889 was unique in its scale and intensity. It saw thousands of eager settlers, often referred to as “boomers,” lining up along the borders of Oklahoma Territory, poised to stake their claim as soon as the starting gun was fired.
The impact on American real estate was profound. Overnight, what was once untamed wilderness became prime real estate, coveted by speculators, farmers, and entrepreneurs alike. The sudden influx of settlers led to a frenzied competition for land, with individuals racing across the open prairie in search of the most promising plots. This massive land rush sparked a boom in property values and spurred the rapid development of towns and infrastructure across Oklahoma Territory.
Beyond its economic implications, the Land Rush of 1889 had far-reaching effects on American society. It represented the culmination of Manifest Destiny, the belief that it was the destiny of the United States to expand westward, and symbolized the pioneering spirit that defined the American frontier experience. The settlement of Oklahoma Territory brought together people from diverse backgrounds and regions, contributing to the cultural mosaic of the American West.
However, it’s essential to acknowledge that the Land Rush of 1889 also had negative consequences, particularly for the Native American tribes who had been forcibly displaced from their ancestral lands to make way for white settlement. The rush for land further marginalized Indigenous peoples and contributed to the ongoing dispossession and erasure of their cultures.
In conclusion, the Land Rush of 1889 left an indelible mark on American real estate and society. It fueled the expansion of the western frontier, reshaped the landscape of Oklahoma Territory, and embodied the ideals of opportunity, ambition, and progress that defined the American experience in the late 19th century.
3. North Dakota, South Dakota, Montana, and Washington Become States: The Enabling Act of 1889 allowed for the creation of four states and their entry into the union. The four states were Montana, Washington, North Dakota, and South Dakota. The law also enabled the splitting of North Dakota and South Dakota.
The creation of these states spurred a flurry of real estate activity as settlers rushed to claim land and establish homesteads. Towns sprang up overnight, fueled by speculation and the prospect of newfound prosperity. Real estate agents played a pivotal role in facilitating land transactions, often promoting the virtues of fertile soil, abundant natural resources, and strategic locations for trade and commerce.
In North Dakota and South Dakota, the vast expanses of fertile prairie attracted waves of farmers eager to cultivate wheat, corn, and other crops. Towns like Fargo and Bismarck in North Dakota and Sioux Falls in South Dakota became bustling hubs of agricultural commerce, driving demand for residential and commercial properties.
Montana’s rich mineral deposits, including gold, silver, and copper, lured prospectors and miners to the region, leading to the rapid development of towns such as Butte and Helena. Real estate values soared as mining camps evolved into thriving cities, supported by a network of railroads and infrastructure.
Washington’s temperate climate and abundant natural resources attracted settlers seeking timber, fishing, and agricultural opportunities. Cities like Seattle and Spokane boomed as lumber mills and fishing fleets fueled economic growth, driving up property values and spurring urban development.
These states’ creations transformed the landscape and laid the foundation for modern real estate markets in the region. Today, their legacy continues to shape land use patterns, property rights, and economic dynamics, highlighting the enduring impact of their statehood on the real estate sector.
Headline Real Estate News Stories In 1880 -1889
The Johnstown Flood of 1889 remains to be one of the deadliest natural disasters in American history, with profound implications for real estate development and land management practices.
The catastrophe occurred on May 31, 1889, when the poorly maintained South Fork Dam collapsed after heavy rainfall, unleashing a wall of water that devastated the town of Johnstown, Pennsylvania, and surrounding areas. The flood claimed over 2,200 lives and caused extensive destruction to homes, businesses, and infrastructure.
In the aftermath of the disaster, the Johnstown region faced significant challenges in rebuilding and real estate recovery. The flood highlighted the importance of proper land use planning and engineering standards, prompting calls for stricter regulations to prevent similar tragedies in the future. Real estate developers and property owners had to reckon with the risks posed by buildings in flood-prone areas and the need for robust infrastructure to mitigate such risks.
The Johnstown Flood also had broader implications for American real estate markets and insurance practices. Insurance companies faced substantial losses from the disaster, leading to increased scrutiny of underwriting policies and the development of flood insurance programs. Homebuyers and investors became more cautious about purchasing properties in flood-prone regions, influencing market demand and property values in vulnerable areas.
Furthermore, the disaster spurred efforts to improve disaster preparedness and response mechanisms at the local, state, and federal levels. Government agencies and advocacy groups pushed for better floodplain mapping, emergency management plans, and investments in flood control infrastructure to minimize the impact of future floods on real estate assets and communities.
Overall, the Johnstown Flood served as a wake-up call for American real estate stakeholders, highlighting the importance of disaster resilience, land use planning, and risk management in property development and investment decisions. It reshaped perceptions of environmental hazards and spurred efforts to safeguard communities and assets against natural disasters in the years to come.
What Historic Real Estate Events Shaped 1880 -1889
The effects of the Civil War were still felt, particularly in the defeated Southern states. The rapid transportation boom after the Civil War also influenced the 1880s as those had to wind down and that resulted in an economic downturn.
Economic Factors, Supply, and Demand
The Depression of 1882–85, often referred to as the “Long Depression,” was a significant economic downturn that had far-reaching effects on various sectors, including real estate. Starting with the decrease in railroad construction leading to the decrease in money supply, the depression was not characterized by panic. It was more of a gradual decrease in economic activity.
In the realm of real estate, the depression had profound implications, reshaping landscapes and influencing property values in both urban and rural areas. One of the most notable effects was the decline in real estate prices. As economic activity slowed and unemployment soared, demand for property plummeted. This led to a surplus of available real estate, causing prices to fall sharply. Many property owners found themselves underwater, owing more on their mortgages than their properties were worth, exacerbating financial distress.
The housing market bore the brunt of the depression’s impact. Construction activity slowed dramatically as builders faced difficulty securing financing and finding buyers. Vacancy rates soared as people struggled to afford homes or were forced to downsize due to financial hardship. Homeownership became increasingly elusive for many, leading to a rise in tenancy and overcrowded living conditions in urban centers.
In addition to residential real estate, commercial properties were also hit hard. Businesses faced declining revenues and were forced to downsize or close altogether, leaving behind vacant storefronts and office spaces. Landlords grappled with dwindling rental incomes and declining property values, further exacerbating financial strain.
The agricultural sector, which was heavily reliant on land ownership, also experienced significant challenges. Falling crop prices, coupled with high levels of debt among farmers, led to widespread foreclosures and land seizures. Many farmers were forced off their land, either selling at distressed prices or facing eviction.
The Depression of 1882–85 highlighted the interconnectedness of the economy and the real estate market. Its effects were felt not only by property owners and investors but also by renters, businesses, and farmers across the country. The scars of this prolonged downturn would take years to heal, underscoring the lasting impact of economic crises on the built environment.
In 1882, Standard Oil Trust was secretly created as a monopoly by John D. Rockefeller and his associates. The monopoly had a significant effect on real estate, particularly in areas where the company operated its refineries, pipelines, and distribution networks.
One notable impact was the concentration of real estate ownership and control in areas where Standard Oil had a presence. The company’s vast operations required extensive infrastructure, including refineries, storage facilities, and transportation networks. As a result, Standard Oil often acquired large tracts of land to accommodate its facilities and operations. This consolidation of land ownership could influence local real estate markets, as it reduced the availability of land for other uses and potentially inflated property values in areas where the company held significant holdings.
Additionally, the expansion of Standard Oil’s operations could stimulate real estate development in certain regions. As the company grew and established new facilities, it created jobs and attracted workers and businesses to surrounding areas. This influx of people and economic activity could drive demand for housing and commercial properties, leading to increased real estate development and investment in affected communities.
On the flip side, the dominance of Standard Oil in the oil industry could also have negative consequences for real estate markets. The company’s monopolistic practices, including aggressive pricing strategies and predatory behavior towards competitors, could stifle economic competition and innovation, potentially dampening overall economic growth and limiting opportunities for real estate development and investment outside of the company’s sphere of influence.
Furthermore, Standard Oil’s monopolistic control over the oil industry could have broader macroeconomic effects that indirectly impacted real estate markets. For example, the company’s ability to manipulate oil prices and control access to key resources could contribute to economic instability or inflationary pressures, which could in turn influence interest rates, property values, and investment patterns in real estate markets.
Government Policies and Interventions
The Interstate Commerce Act of 1887 was a landmark legislation in the United States, primarily aimed at regulating railroad monopolies and unfair business practices. While its immediate focus was on the transportation industry, its broader implications rippled across various sectors, including real estate. By curbing monopolistic control and promoting fair competition, the act indirectly influenced real estate development. With more equitable transportation costs and accessibility, regions previously isolated could now be connected to markets, spurring economic growth and urban expansion. The Act’s provisions laid a foundation for future regulatory frameworks, fostering a more dynamic and interconnected real estate landscape.
Another significant legislation that was passed during the 1880s was the Dawes Act of 1887 aimed to assimilate Native Americans into mainstream American society by dividing tribal lands into individual parcels for private ownership. While purportedly intended to benefit Indigenous peoples, the Act ultimately led to the loss of vast swaths of Native land. This land redistribution profoundly impacted real estate, opening up previously tribal-held territories for settlement, agriculture, and development. Consequently, it fueled a land rush, attracting settlers and speculators to newly available lands. However, the Dawes Act also precipitated the dispossession of Native peoples from their ancestral territories, contributing to a complex legacy of land ownership and Indigenous rights in the United States.
Demographic Factors
The Census of 1880 showed that the total population of the United States was 50,189,209. The census covered 38 states and was significant because it was the first one that covered the relationship between each person. It also listed marital status, street name, house number, and parental birthplace. At that time there were more than 100,000 Chinese men and 3,000 Chinese women living in the western part of the United States.
Societal Preferences and Trends
In 1880, Kansas became the first U.S. state to enact a statewide prohibition on all alcoholic beverages, sparking a nationwide trend. The move stemmed from the Temperance Movement’s concerns about alcohol’s societal harms. Prohibition gained momentum, leading to the passage of the 18th Amendment in 1919, banning alcohol nationwide from 1920. However, Prohibition fueled organized crime and speakeasies, proving unsustainable. By the early 1930s, its failures were evident, prompting the ratification of the 21st Amendment in 1933, ending Prohibition. Despite its intent to curb alcohol-related issues, Prohibition’s legacy endures as a cautionary tale about the complexities of government regulation and societal change, shaping ongoing debates about alcohol policy and individual liberties.
Technological Innovations
In 1880, the city of Wabash, Indiana, witnessed a historic milestone with the installation of the first electric streetlight in the United States. This pioneering feat marked the dawn of a new era in urban illumination and set the stage for the widespread adoption of electric lighting technology across the country.
Just two years later, in 1882, the innovative genius Thomas Edison ushered in another monumental development by launching the United States’ first commercial electrical power plant. Located in Manhattan, New York City, Edison’s power plant revolutionized the way society accessed and utilized electricity, laying the groundwork for the modern electrical grid.
Edison’s visionary contributions transformed the urban infrastructure landscape and fueled innovation and progress in various industries. The availability of reliable electric power catalyzed advancements in manufacturing, transportation, communication, and countless other sectors, spurring unprecedented economic growth and prosperity.
The combination of the first electric streetlight in Wabash and Edison’s commercial power plant exemplified the rapid pace of technological innovation during the late 19th century. These milestones not only illuminated streets but also illuminated the path toward a future powered by electricity, forever altering the course of human history.
Cultural Factors
In 1883, two groundbreaking cultural phenomena emerged on opposite ends of the United States, shaping the entertainment landscape for years to come. In Boston, Massachusetts, the curtain rose on the first vaudeville theater, marking the birth of a vibrant and eclectic form of live entertainment that would captivate audiences across the nation. Vaudeville theaters became hubs of creativity and spectacle, featuring a diverse array of acts including comedy, music, dance, magic, and acrobatics, all packaged into lively and dynamic variety shows.
Meanwhile, in Omaha, Nebraska, another spectacle was taking shape with the debut of Buffalo Bill’s Wild West Show. Conceived by the legendary frontiersman William “Buffalo Bill” Cody, this extravaganza brought the spirit of the American West to audiences far and wide. With its thrilling reenactments of frontier life, daring stunts, and performances by real cowboys and Native American performers, Buffalo Bill’s Wild West Show captured the imagination of spectators, offering a thrilling and romanticized glimpse into the vanishing frontier.
Both vaudeville and Buffalo Bill’s Wild West Show reflected the evolving tastes and aspirations of American society during the late 19th century. They provided escapist entertainment, offering audiences an opportunity to experience excitement, adventure, and spectacle amidst the rapid pace of industrialization and urbanization. These cultural touchstones not only entertained but also helped to define and celebrate the unique spirit of the American experience.
Transportaion and Infrastructure
The opening of the Brooklyn Bridge in 1883 marked a monumental achievement in engineering and urban development, profoundly impacting New York City and the nation. As the first fixed crossing spanning the East River, the Brooklyn Bridge facilitated easier movement between the boroughs of Manhattan and Brooklyn, catalyzing economic growth, residential expansion, and cultural exchange. Its iconic Gothic towers and elegant suspension cables became enduring symbols of progress and ingenuity, inspiring generations of engineers and architects.
Similarly, the opening of the Washington Bridge in 1888 further transformed transportation and connectivity in New York City. Spanning the Harlem River, the Washington Bridge provided a vital link between the boroughs of Manhattan and the Bronx, facilitating commerce, commuting, and social interaction. Its completion spurred development in the northern reaches of Manhattan and the burgeoning neighborhoods of the Bronx, contributing to the city’s ever-expanding urban fabric.
Together, the Brooklyn Bridge and the Washington Bridge revolutionized urban mobility and connectivity, shaping the trajectory of New York City’s growth and development. They not only facilitated the movement of goods and people but also fostered cultural exchange, social integration, and economic opportunity, leaving an indelible mark on the landscape and psyche of the city and its inhabitants.
Closing This Capsule
The 1880s saw the further expansion of the United States as new states were admitted into the union. For our next Realty Time Capsule, we will be looking at the 1890s and look back to the relentless march of the nation toward its Manifest Destiny.
For a deeper understanding and look into these topics check out these titles:
History of Immigration in the United States:
-
“Coming to America: A History of Immigration and Ethnicity in American Life” by Roger Daniels
-
“Immigration: An American History” by Carl J. Bon Tempo
