For thousands of years, real estate has been one of the best investments for individuals, families, and many groups of people. This has been home to many organizations and associations that help individuals become more involved in the community, provide unique experiences for students, provide opportunities for new residents to get to know others, and much, much more. That is why it is important that economists do not ignore the real estate market while examining different historical periods and figures.
In the late 1800s, there was such a huge surge in the real estate market that prices shot up from their then rock bottom. The city of Las Vegas, which is located southwest of the main city of Nevada, experienced one of the biggest land value increases during that period. During this period, Las Vegas saw its land value almost triple, which helped it become a very popular destination. Not all cities experienced this increase in land value. Even though Las Vegas did, the real estate market around it continued to grow.
The real estate bubble occurred in various places around the country in the late 1800s and early 1900s. This was when the prices of homes and land rapidly increased, which made them much too expensive for the vast majority of the population. World War I greatly helped the country with stagflation. The country itself had to make its peace with a complete monetary system, which affected the real estate market greatly.
- During the late 1920s and 1930s, there was another boom in the real estate market. This period was marked by a huge increase in the number of people who were in town, which allowed the population to increase. This increased the demand for space and homes to accommodate these increased residents. Also, after World War II, there was a huge increase in the demand for offices. This left the market in a state of disarray.
- In the early 1960s, there was another huge boom in the real estate market. Perhaps one of the biggest reasons for this boom is that this was the time when the nuclear deterrent was up. This was the beginning of the Determine-N defensively. This meant that the country needed to have thousands of bases set up outside of its landmass to deter an attack from the IRA, initially letting tens of thousands of soldiers die to keep the fires burning for as long as possible before the war ended.
- During the late 1960s through the mid-1970s, there was a huge boom in the real estate market. This was when many homes were built in the suburbs, which then became the market for more affluent Americans.
- During the mid-1980s, the real estate market again experienced a corp breakup. This time, the paste had gotten thick. This caused a major slump in the economy in the second half of the decade, which only showed about three years of growth before things again picked back up and continued on their path.
Right up until the present day, there have been other boom and bust cycles in the history of real estate. The most recent boom ended in the late 1990s. This was when values shot up drastically and started to crash. The peak value in the late 1980s was only reached in late 1987 to 1988. The peak was witnessed during the late 1987 to 1989 time.
Unfortunately, this is just one market cycle that is common in the history of real estate. In all the markets of history, cycles of booms and busts will occur. This is something that should never be ignored when doing property investment analysis on a particular property. There are many other markets, such as 145th Street, and categories that will have cycles of booms and busts. Historically, cycles like this have always occurred in the history of property investment. Property investment is considered a good investment because, in almost all markets, it has on-succeeded investments that will be adding entire undersold returns.
To sum it all up, the last phase of a boom is usually the best time to invest in a particular property. It can be a strategy to maximize profits over time when adding value to the property or to find out that a particular piece of land has a lot of development potential.