Introduction
In our last Realty Time Capsule, we saw a nation that was in the middle of grabbing its future. As the country was calling for a new constitution, new laws were also coming out that would impact how land would be used. New forms of transportation are also being tested which will be instrumental in making the country smaller and more accessible. For today’s Time Capsule, we will delve into the world of real estate in 1788 and we will explore the key points that made the year a pivotal one for the industry.
Three Key Points:
1. Establishment of the Town of Marietta:
While the town of Marietta itself has been lost to obscurity, its founding is a very significant milestone, not just for the history of real estate in the United States but the history of the country in general. Marietta, which is located in what is now the state of Ohio, is the first permanent settlement outside of the first Thirteen Colonies. It was the direct result of the Northwest Ordinance of the prior year which created the Northwest Territory. The settlement opened the way for more pioneers who came in search of more lands.
2. The Symmes Purchase:
The Symmes Purchase, also known as the Miami Purchase, was one of the first major land purchases in the United States after the Revolution. The purchase covered land with an area of 311,682 acres in lots that covered three counties in modern-day Ohio. The land was purchased by Judge John Cleves Symmes of New Jersey from the Continental Congress. The purchase created the foundation for the modern-day city of Cincinnati and the state of Ohio.
3. The Great New Orleans Fire
The Great New Orleans Fire, also known as the Good Friday Fire was a conflagration that consumed more than 850 of the 1,100 structures found in New Orleans, Louisiana. Although a part of New Spain, the fire would have a lasting impact on the city, which would soon be a part of the United States. It would also impact the relationship between the United States and New Spain.
Headline Real Estate News Stories in 1788:
Several important events in 1788 managed to hit the headlines of newspapers back in the day. The biggest and most dramatic of course is the fire that consumed New Orleans. Although the city was not part of the United States back then the subsequent rebuilding and the demand for supplies opened up trade between New Spain and the United States which developed the relationship. The founding of the town of Marietta and the issuance of a patent, may not have ranked a mention on the front page of papers but the effects of those two events will play a huge role in shaping the new country.
What Historic Real Estate Events Shaped 1788?
The main historical event that shaped 1788, not just in real estate terms but in general was the American Revolution. Although the military phase of the revolution ended in 1783, the Revolution continued until the following year when the constitution was adopted. The peace also fostered the increasing number of settlers moving westward, eager to acquire land and establish new homes. This westward expansion led to the founding of new towns and cities, with real estate transactions becoming integral to the nation’s growth. The emergence of cities like Cincinnati and Nashville was a testament to the booming real estate market during this era. The concept of private land ownership and the establishment of real estate markets in these burgeoning towns played a vital role in shaping the nation’s landscape.
Economic Factors, Supply, and Demand
Economic factors were pivotal in influencing real estate trends in 1788. As the new nation was finding its economic footing, the real estate market was shaped by the forces of supply and demand. Land was seen as a valuable resource, and its availability was directly tied to economic growth. The burning of New Orleans drove the Spanish authorities in New Spain to seek supplies in the United States, building a relationship that they previously were not so keen on.
Government Policies and Interventions
Government policies in 1788 played a significant role in shaping the real estate landscape. Because there was so much potential land for settling, government policies on how those new lands would be settled. For example, the Northwest Ordinance of 1787 directly resulted in the establishment of the town of Marietta.
Demographic Factors
Migration patterns heavily influenced the demographic landscape of the United States in 1788. The rapid population growth and movement of settlers to the western frontier created pockets of real estate demand and opportunity.
Societal Preferences and Trends
Property ownership was deeply ingrained in the American dream, driving individuals to invest in real estate and risk venturing into new territories. Real estate trends in 1788 were also influenced by societal preferences and trends. The desire for land ownership, independence, and the opportunity to establish a new life in the expanding nation fueled the real estate market.
Technological Innovations
The main technical innovation during those years was the use of the steam engine. This invention allowed for a power source that could help push traveling to break down time and distance. Improved roads and waterways made it easier for settlers to reach new lands and for real estate transactions to take place.
Environmental Factors
The environment played a critical role in shaping the real estate market of 1788. The fertility of the land and its suitability for agriculture, as well as the availability of natural resources, were pivotal factors in land valuation. The choice of location for new settlements was heavily influenced by the environment’s capacity to sustain human habitation.\
Transportation and Infrastructure
The growth of the transportation and infrastructure networks in the late 18th century played a crucial role in expanding real estate opportunities. Improved transportation routes facilitated the movement of people and goods, further driving demand for real estate in strategic locations.
1788 was a momentous year in the history of real estate in the United States. The nation was experiencing rapid growth and expansion, with a dynamic interplay of different factors. Tragedy struck in a land that in the future would become a part of the new country but it also fostered growth. A new town was established which signaled the growth into other towns.
In the next Time Capsule, we will be continuing our look into how the real estate story of America is unfolded as a new constitution is put in place as the primary law of the land.
For a deeper understanding and look into these topics check out these titles:
On the New Orleans Fire:
“New Orleans: The First 300 Years” by Errol Laborde (Editor), Peggy Laborde (Editor), Lawrence Powell (Foreword)
