"Historically, land values have had large fluctuations. In Chicago, total land value in current dollars was $160,000 in 1833, $10 million in 1836, $1.2 million in 1842, $125 million in 1856, $60 million in 1861, $575 million in 1873, $250 million in 1877, $1.5 billion in 1893, $5 billion in 1926, and $2.5 billion in 1932 (Hoyt, 1933, p. 254)."
This works out to be about 10.25% per year for that 99 year span 1833 till 1932. Wonder what its estimated worth is today?
This highlights two significant yet different aspects. Timing the cycles. The desecration of the value of money over time and the consequent inverse impact seen in property values. Get them both right and you (or your heirs) win in spades. |
