In August of 1914 World War I began as Germany declared war on Russia. In the span of four years, chaos and destruction brought great tragedy and destruction to the world. By 1918, the war was over, and Americans began the awesome task of rebuilding their lives. As soldiers returned home from war, there was a new found wealth in the United States. Florida reaped the benefits of this tragedy and the growing United States middle class facilitated what is now referred to as “The Great Florida Land Boom of the 1920’s.”
The newly educated workers and the growth of Florida’s automobile industry brought vast amounts of people to Florida in the decade following the war. Economic prosperity and unhampered credit allowed Floridians to begin purchasing Real Estate. Many out of state persons began purchasing land instead of just vacationing and staying at hotels. Florida passed legislation in 1924 including an Amendment to Article IX of the Florida Constitution which prohibited the levy of inheritance and individual income taxes. This new law was attractive to many northerners seeking to come to Florida and live a life of leisure while saving money on taxes.
The free flow of credit during this time provided unfettered land speculation in Florida. Many northerners just wanted to own land and credit was easily obtainable. Licensed Real Estate Brokers and Real Estate salespersons provide protections, knowledge, and fairness for both buyers and sellers of real estate. The boom caused a lax in the real estate protection system. An industry termed “Binder Boys” would often meet with prospective buyers and or their representative. Often these young persons did not understand the laws of Real Estate and would take a binder or down payment on a piece of property without ensuring either party was fairly represented and protected by the laws of Florida.
This land boom eventually ended in Florida for the following reason:
- Demand was too high for housing; so many persons left Florida, and the population boom began to dwindle.
- Building materials to feed the boom began to slow down as railway systems could not keep up with the demand for materials.
- Extreme summers and winters in 1925 curbed visitors and possible investors in pursuing the Sunshine State.
- Natural disasters such as the 1926 Great Miami Hurricane eventually wreaked havoc on the economy of Florida.
Boynton Beach Florida was also a casualty of the “Florida Land Boom of the 1920’s”. The Palm Beach post reported in 2014 that K.D. Purdy a land developer platted and sold lots to homebuilders in the hopes of building a vast development called Lake Boynton Estates. By the 1920’s the land adjacent to I95 between Boynton Beach Boulevard and Woolbright Boulevard, never grew to the vision of Mr. Purdy. However, many persons still live in the area and perhaps in time it may become a mecca once envisioned by its founder.
The “Great Florida Real Esate Boom of the the 1920’s” provides an example of the need of a qualified Real Estate professional to protect your rights and interests. A Boynton Beach Real Estate Attorney at Boynton Law, PA. will provide sound legal advice and protect your property interests in South Florida. Whether you need an attorney to review the contract terms, property appraisals, property surveys, and ensuring the proper Title insurance, our experienced Real Estate Attorneys are here to assist you throughout the entire real estate process.