Introduction
The year 1787 marked a significant moment in the history of the United States. The nation was in the midst of forging its identity and grappling with critical issues, including real estate. This article delves into the state of real estate during this pivotal year, highlighting three key points, examining the influence of historical events, and exploring the various economic, governmental, societal, and environmental factors that shaped the real estate landscape.
Three Key Points:
1. The Land Ordinance of 1787:
The Land Ordinance of 1787, also known as the Northwest Ordinance, was a milestone in the development of the United States. This ordinance laid the groundwork for the organization and distribution of land in the newly acquired Northwest Territory. It established a process for the creation of new states, with a particular emphasis on promoting public education and property rights. The Land Ordinance of 1787 became a blueprint for land management, encouraging settlement and fostering the development of this vast region.
2. Constitutional Convention and the New Constitution:
Although in real estate terms, the Northwest Ordinance was more significant, the Constitutional Convention, which also took place in the same year, was more pivotal on a national scale as it changed the format of the government. The convention took place from May 25 to September 17, 1787. It was originally intended to fix the frame of government, but it ended up creating a new one.
3. Steam Power:
In August of that year, John Fitch launched a steam-powered craft on the Delaware River. The event was witnessed by delegates of the Constitutional Convention. Although Fitch would fail to capitalize on the success of his innovation and would die in obscurity, this marked the introduction of the steam engine in the United States, which would later power locomotives, steamships, and industries that would help the westward expansion and increase the demand for more land.
Headline Real Estate News Stories in 1787:
The signing of the U.S. Constitution in September of 1787 was a landmark event that laid the foundation for the nation’s legal framework. The Constitution addressed property rights and provided stability and confidence to property owners, thus promoting real estate transactions.
The Land Ordinance of 1787, along with the U.S. Constitution, contributed to the settlement of the Northwest Territory. The organization of new states and the protection of property rights encouraged settlers to move westward and invest in real estate.
During the Revolutionary War, Spain closed the Mississippi River to the shipping of the new nation. The southern states felt that access to the Mississippi was vital for their livelihood, as evidenced by the quotes from letters published in newspapers of the day. Southerners claimed that they would rather return to the fold of Great Britain than lose access to the river.
What Historic Real Estate Events Shaped 1787?
The events leading up to 1787, including the Land Ordinance of 1785 and the signing of the Treaty of Paris in 1783, were pivotal in shaping the real estate landscape of that year. These events provided a legal framework for land distribution and encouraged westward expansion, driving real estate development.
Economic Factors
The real estate market in 1787 was closely tied to the nation’s economic development. A growing population and the expansion of commerce and trade led to increased demand for land. The availability of fertile soil, timber, and navigable waterways further heightened the economic value of real estate. The possibility of obtaining land in the frontier territories was a major factor for westward expansion.
Government Policies and Interventions
Government policies and interventions continued to play a significant role in shaping the real estate market. The Land Ordinance of 1787 provided the legal framework for land distribution, while the U.S. Constitution addressed property rights, providing a stable environment for property ownership.
Demographic Factors
The demographic landscape in 1787 was marked by a westward migration of settlers and pioneers. Families and individuals sought to establish new homes and communities in the Northwest Territory and the Mississippi Territory. This migration not only influenced population distribution but also drove land demand.
Societal Preferences and Trends
Societal preferences were geared toward land ownership, a symbol of independence and success. The desire to own land and achieve the American Dream continued to fuel real estate transactions in 1787. It also drove families to seek the unknown in the American frontier.
Technological Innovations
In 1787, technological innovations were still limited. Real estate transactions primarily relied on traditional methods, including manual land surveying and written documentation. The industry had yet to witness significant technological advancements. The main innovation seen that year was John Fitch’s version of the steam engine. Although the demo was a success, it failed to produce any significant impact and was later forgotten.
Environmental Factors
The presence of fertile soil, timber resources, and navigable waterways continued to be critical factors influencing real estate desirability. Areas with these natural advantages remained in high demand in the real estate market.
Transportation and Infrastructure
Transportation and infrastructure development were still in their early stages in 1787. The expansion of roads and waterways was crucial for the movement of people and goods, impacting the accessibility and value of real estate in different regions.
Closing This Capsule
Real estate in the United States in 1787 was characterized by the impact of significant historical events, including the Land Ordinance of 1787 and the calling of the Constitutional Convention. These events laid the foundation for the organization of land and the protection of property rights. Economic factors, government policies, and societal preferences were integral to the real estate landscape, while environmental factors and infrastructure development continued to play key roles. This year marked a critical phase in the development of the nation and its real estate market.
That closes the capsule for today. Be sure to follow us to read the next Realty Time Capsule tomorrow.
For a deeper understanding and look into these topics, check out these titles:
On the Northwest Ordinance:
“The Northwest Ordinance: Constitutional Politics and the Theft of Native Land” and Robert Alexander
On the Constitutional Convention:
“The Constitutional Convention of 1787: Constructing the American Republic (Reacting to the Past™)” by John Patrick Coby
“The Federalist” by Alexander Hamilton, John Jay, and James Madison
