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Real Estate Changes

If someone from the 1900s told you what real estate would look like by today, they probably wouldn’t believe it themselves.

From boom to bust and back again, no one can deny that real estate has seen many ups and downs over its history in the United States. But how did we get here? And where are we going? Fasten your seatbelts because we are going on a wild ride through time!

The Early Years (1900-1929)

In 1900, there were no mortgage loans. Most homes would be purchased outright in cash or with a security deposit.

The Great Depression and World War II (1930-1945)

With the beginning of the Great Depression, it became challenging to buy homes without a large down payment. During this time, the average home size did not increase much and averaged around 1000 square feet. Most homes would have one or two bedrooms.

The Post-War Boom (1946-1979)

During this time, home sizes increased significantly as people moved out of urban areas and into newly constructed suburbs. The average home size grew to over 1600 square feet in the 1950s.

As housing prices grew, so did the need for brokers. With more brokers came an increase in rental properties, as it became easier to rent houses than to buy them.

Modern Real Estate (1980-Present)

During this time period, homes grew from over 2500 square feet to nearly 4000 square feet in size, a staggering 85% increase from the beginning of the century! In addition, homes became built for larger, more modern families. With each generation increasing in size, growing demand for housing accommodated the new trend of family size and farmland shrinking.

Today’s homes are no longer just single structures but rather multiple building complexes with dozens of floors. There is even talk of a “vertical neighborhood” being built in downtown Los Angeles by 2040. Only time will tell what the real estate market of the future will look like and if it even remains on this planet!