The Realty Time Capsule: 1870 -1879 – Reconstruction Introduction

The 1860s was a crucial decade for the United States. It was the time when the union faced its biggest threat to its existence because of the Civil War. The last Realty Time Capsule showed how the events during that decade affected America’s real estate market and the country in general. For this Realty Time Capsule, we will be looking at the events that transpired from 1870 to 1879. 

Three Key Points  

1.Reconstruction:  The Reconstruction era following the Civil War marked a pivotal period in American history, characterized by efforts to rebuild the nation and address the socio-economic aftermath of slavery. This era, spanning from 1865 to 1877, profoundly impacted various sectors of American society, including the real estate industry. The Reconstruction brought about significant changes in property ownership, land distribution, and urban development, shaping the landscape of the United States for decades to come. 

One of the most profound effects of Reconstruction on the real estate industry was the redistribution of land. With the abolition of slavery, millions of African Americans were emancipated and sought to establish themselves as landowners. The Freedmen's Bureau, established in 1865, played a crucial role in facilitating this process by overseeing the redistribution of land confiscated from Confederate landowners. This redistribution, coupled with the promise of "40 acres and a mule," aimed to provide newly freed slaves with economic independence and opportunities for agricultural self-sufficiency. 

However, the ambitious land redistribution plans of Reconstruction faced many challenges and fell short of their intended goals. The promise of land to former slaves was largely unfulfilled due to political opposition, legal obstacles, and the reluctance of white landowners to relinquish their property. As a result, many African Americans remained disenfranchised and dispossessed, unable to secure land or access capital for real estate investment. 

Moreover, the Reconstruction era witnessed the rise of racially discriminatory practices in the real estate industry, such as redlining and restrictive covenants. These practices systematically excluded African Americans and other minority groups from homeownership opportunities in certain neighborhoods, perpetuating segregation and inequality. Redlining involved the delineation of neighborhoods based on race and perceived risk, denying mortgage loans and insurance to residents in predominantly non-white areas. 

Despite these challenges, the Reconstruction era also spurred significant urban development and infrastructure projects that transformed the real estate landscape. The rapid industrialization and urbanization of the late 19th century led to the expansion of cities and the construction of new housing, commercial buildings, and transportation networks. Railroads, canals, and telegraph lines facilitated the movement of people and goods, connecting distant regions and driving demand for real estate in urban centers. 

Additionally, the Reconstruction era witnessed the emergence of new real estate practices and institutions that shaped the industry's evolution. Real estate speculation became increasingly prevalent as investors sought to capitalize on the economic opportunities presented by urbanization and westward expansion. Land speculation fueled speculative bubbles and land rushes, such as the California Gold Rush and the Oklahoma Land Run, driving up property values and reshaping local economies. 

Furthermore, the Reconstruction era saw the establishment of regulatory frameworks and legal precedents that continue to govern the real estate industry today. The Homestead Act of 1862, for instance, provided settlers with access to public land in exchange for cultivating and improving the property, laying the groundwork for homesteading and land ownership in the American West. Similarly, landmark court decisions like Plessy v. Ferguson (1896) and Shelley v. Kraemer (1948) shaped the legal landscape of housing segregation and discrimination. 

The Reconstruction era had a profound and lasting impact on the real estate industry of the United States. While it brought about significant changes in property ownership, land distribution, and urban development, it also perpetuated racial inequalities and discriminatory practices that continue to affect the industry today. By examining the complexities of Reconstruction's legacy, we gain insight into the enduring challenges and opportunities facing the real estate sector in America. 

2. Indian Wars: The 1870s were a tumultuous period in American history, marked by a continuation of the Indian Wars that had been ongoing since the colonial era. During this decade, conflicts between Indigenous peoples and the United States government escalated as settlers encroached further into Native American territories in pursuit of land, resources, and economic opportunities. These conflicts had significant implications for the real estate industry of the US, shaping patterns of land acquisition, settlement, and development in the American West. 

One of the most notable events of the 1870s was the Great Sioux War of 1876-77, which culminated in the Battle of Little Bighorn. The discovery of gold in the Black Hills of South Dakota prompted a flood of white settlers into Sioux territory, violating previous treaties. The Sioux, led by leaders such as Sitting Bull and Crazy Horse, fiercely resisted these incursions, leading to a series of violent confrontations with the US Army. 

The Battle of Little Bighorn, also known as Custer's Last Stand, was a significant turning point in the Great Sioux War. In June 1876, Lieutenant Colonel George Armstrong Custer and his troops were defeated and killed by a coalition of Sioux and Cheyenne warriors, dealing a humiliating blow to the US military and emboldening Native resistance. However, the victory was short-lived, as the US government intensified its efforts to subdue the Indigenous population and assert control over the region. 

The aftermath of the Great Sioux War saw the further erosion of Indigenous land rights and the acceleration of white settlement in the Black Hills and surrounding areas. The US government intensified its campaign to forcibly remove Indigenous peoples from their ancestral lands and open the region to non-Indian settlement. This process, often accompanied by violence and coercion, facilitated the expansion of the real estate industry in the American West. 

The Homestead Act of 1862, which offered free land to settlers willing to cultivate and improve it, played a crucial role in promoting westward migration and settlement during the 1870s. The promise of free land attracted thousands of homesteaders to the Great Plains and other frontier regions, fueling demand for real estate and stimulating economic growth. However, the implementation of the Homestead Act also contributed to the displacement of Indigenous peoples and the dispossession of their lands. 

Furthermore, the 1870s saw the rise of railroad expansion as a driving force behind the colonization of the American West. The completion of the Transcontinental Railroad in 1869 opened up new opportunities for transportation and trade, linking the eastern United States with the western frontier. Railroads played a central role in promoting settlement and development along their routes, driving up land values and spurring speculation in real estate. 

Despite the significant impact of the Indian Wars on the real estate industry, it's essential to recognize the profound human cost of these conflicts. Indigenous communities suffered immense loss of life, displacement, and cultural disruption because of white settlement and military aggression. The legacy of these conflicts continues to shape relationships between Indigenous peoples and the US government, as well as the ongoing struggle for land rights and sovereignty. 

The Indian Wars of the 1870s had far-reaching implications for the real estate industry of the US, shaping patterns of land acquisition, settlement, and economic development in the American West. The displacement of Indigenous peoples, the expansion of white settlement, and the growth of industries such as railroads all contributed to the transformation of the region's real estate landscape. However, these developments came at a steep human cost and laid the groundwork for ongoing conflicts over land and resources in the West. 

3. Colorado Is Admitted As the 38th U.S. State: The entry of Colorado as the 38th state of the United States in 1876 marked a significant moment in the nation's history. Known as the "Centennial State," Colorado's admission brought with it a flurry of economic, social, and political transformations, including notable impacts on the real estate sector. 

Colorado's diverse landscape, encompassing majestic mountains, vast plains, and thriving urban centers, immediately attracted settlers and investors eager to capitalize on the state's abundant resources and opportunities. The discovery of gold and silver in the late 19th century sparked a mining boom, leading to rapid population growth and the establishment of numerous towns and cities. This influx of people created a surge in demand for housing and commercial properties, driving up real estate prices and fueling a construction frenzy across the state. 

The growth of Colorado's economy, fueled by mining, agriculture, and later industries such as energy and technology, further bolstered the real estate market. As the state's population continued to expand, developers and investors sought to capitalize on the demand for housing, leading to the construction of new residential developments, commercial buildings, and infrastructure projects. Cities like Denver, Colorado Springs, and Boulder emerged as major urban centers, attracting businesses and residents alike and shaping the landscape of Colorado's real estate market. 

The natural beauty and recreational opportunities offered by Colorado's mountains and outdoor spaces also played a crucial role in driving real estate demand. The state's renowned ski resorts, national parks, and recreational areas became magnets for tourists and second-home buyers, spurring the development of luxury resorts, vacation homes, and condominiums in mountain towns like Aspen, Vail, and Breckenridge. 

Over the years, Colorado's real estate market has experienced its share of booms and busts, influenced by factors such as economic cycles, demographic trends, and regulatory changes. However, the state's enduring appeal as a place to live, work, and play has ensured that its real estate market remains dynamic and resilient, continuing to attract investors, homebuyers, and businesses seeking to stake their claim in the vibrant landscape of the Centennial State. 

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 Headline Real Estate News Stories In 1870 –1879   

Perhaps the biggest headline for the nation during the 1870s was the centennial celebration of 1876. It marked a pivotal moment in American history, commemorating the nation's 100th anniversary of independence. It was a time of great pride and reflection, with grand exhibitions and festivities held across the country to showcase the progress and achievements since the founding era. In terms of real estate, the United States was experiencing significant growth and expansion.  

The aftermath of the Civil War spurred rapid industrialization and westward expansion, driving demand for land and property. The Homestead Act of 1862 also facilitated the distribution of public land to settlers, further fueling the development of towns and cities. However, this period also saw challenges such as economic instability and speculative bubbles in certain regions, particularly in urban centers like New York and Chicago. Despite these challenges, the centennial celebration symbolized the resilience and promise of the American nation as it embarked on a new century of progress and prosperity. 

Other, more tragic news also filled the newspaper of the decade. The Great Chicago Fire, for example, left nearly 100,000 people homeless. The Peshtigo Fire was more deadly as it killed more than 2,500 people in 1871. Then there was the Great Boston Fire of 1872 which caused significant damage. 

What Historic Real Estate Events Shaped 1870 –1879 

The effects of the Civil War were still being felt during the 1870s. The southern states were severely affected by the conflict and its aftermath. With the abolition of slavery, the economy of those states, which were reliant on the use of slave labor, changed forever.  

Economic Factors, Supply, and Demand  

The Coinage Act of 1873, also known as the "Crime of '73," ceased the minting of silver dollars and placed the United States on the gold standard. This decision caused significant repercussions for the economy, particularly for farmers and miners who relied on silver. The sudden contraction of the money supply led to deflation, making it harder for debtors to repay loans. This sparked outrage among agrarian and silver mining communities, fueling the Populist Movement. The Act deepened the divide between urban industrialists and rural interests, setting the stage for contentious debates over monetary policy that reverberated for decades to come. 

The Panic of 1873 was one of the most severe economic downturns in American history, triggered by the collapse of the banking firm Jay Cooke & Company and exacerbated by the repercussions of the Coinage Act of 1873. This financial crisis resulted in a widespread contraction of credit, leading to bank failures, business closures, and mass unemployment. The economy plunged into a depression that lasted for several years. 

One of the sectors hardest hit by the Panic of 1873 was real estate. The speculative frenzy that characterized the market in the preceding years ended. Property values plummeted as demand dried up and foreclosures skyrocketed. Construction projects ground to a halt, leaving countless workers unemployed. Many land speculators and developers faced ruin as their investments evaporated overnight. 

The effects of the Panic of 1873 rippled through the economy, impacting industries ranging from railroads to agriculture. The downturn led to a sharp decline in industrial production, as factories faced reduced demand for goods. Farmers, already struggling due to falling agricultural prices, were further burdened by a lack of access to credit and a diminished market for their products. 

Overall, the Panic of 1873 and its aftermath underscored the interconnectedness of the American economy and the vulnerability of financial markets to systemic shocks. It would take several years of hardship and restructuring before the nation fully recovered from the devastation wrought by the panic. 

Government Policies and Interventions  

The Treaty of Reciprocity, signed in 1875 between the United States and the Hawaiian Kingdom, was a pivotal agreement shaping their economic ties. Championed by King Kalākaua and U.S. Secretary of State Hamilton Fish, it facilitated duty-free trade of Hawaiian sugar into the American market. In exchange, the U.S. gained exclusive rights to Pearl Harbor as a naval station. This treaty bolstered Hawaii's sugar industry, propelling its economy forward. However, it also intensified American influence in the islands, ultimately paving the way for Hawaii's annexation in 1898. The Treaty of Reciprocity stands as a landmark in U.S.-Hawaii relations, blending economic interests with geopolitical strategy. 

Demographic Factors  

The 1870 census of the United States showed not only population growth but also social and economic transformations following the Civil War. With a focus on detailed demographic data, including race, occupation, and geographic distribution, this census provided invaluable insights into the changing landscape of the country. 

The 1870 census influenced American real estate as it helped to shape urban development. As cities expanded and industrialization surged, the census data guided real estate investors and developers in identifying burgeoning areas for growth. With a clearer understanding of population density and demographic trends, investors could strategically allocate resources for housing and infrastructure projects, thus fueling the expansion of urban centers. 

Moreover, the census data influenced property values and investment decisions. Areas with growing populations and prosperous economies experienced a surge in real estate demand, leading to higher land prices and increased property development. Conversely, regions with declining populations or struggling economies faced challenges in attracting investment and maintaining property values. 

Additionally, the census provided insights into land utilization patterns, helping policymakers and urban planners make informed decisions regarding zoning regulations, land use planning, and infrastructure development. By understanding demographic shifts and housing needs, authorities could better allocate resources to address housing shortages and improve living conditions. 

In essence, the 1870 census played a vital role in shaping the real estate landscape of the United States, guiding development decisions, influencing property values, and informing urban planning initiatives for years to come. 

Societal Preferences and Trends  

Progress was being made towards acceptance of African Americans into American society. For example. For example, Thomas Mundy Peterson became the first African American who was allowed to vote in an election 1870. However, there was still discrimination towards the former slaves. 

During the 1870s, the United States was swept up in a fervor for cycling, igniting a national obsession with the two-wheeled marvel. Spearheaded by the introduction of the high-wheel bicycle, or "penny-farthing," cycling became a symbol of freedom and progress. Its popularity soared as enthusiasts, primarily young men, embraced the thrill of speed and adventure offered by these novel machines. Cities buzzed with cycling clubs and races, while rural roads echoed with the whirring of wheels. The bike craze of the 1870s marked a transformative period in American transportation history, laying the groundwork for future innovations in mobility and leisure. 

Technological Innovations  

In the bustling landscape of 19th-century American innovation, few names shine as brightly as those of E. Remington and Sons of Ilion, New York. The year 1873 marked a pivotal moment in the history of communication technology as Remington unveiled the first practical typewriter. This ingenious machine revolutionized written correspondence, administrative tasks, and record-keeping, transforming the way people interacted with written language. 

While Remington was busy revolutionizing written communication, another visionary, Henry Rose, was making waves of his own. In the same year, Rose showcased a seemingly humble invention that would transform the American landscape in ways previously unimaginable: barbed wire. This seemingly simple innovation would forever alter the course of agriculture and land management, facilitating the settlement of the American West and fundamentally reshaping the relationship between humans and the land. 

Meanwhile, in the realm of telecommunication, Alexander Graham Bell was granted a patent for his groundbreaking invention: the telephone. Bell's invention heralded a new era of instant communication, bridging distances and connecting people in ways that were previously unimaginable. The telephone rapidly became an indispensable tool, transforming not only how people communicated but also how societies functioned, fostering greater interconnectedness and accelerating the pace of progress. 

Simultaneously, Thomas Edison was leaving an indelible mark on the world of office technology. In 1876, he received a patent for his mimeograph, a device that revolutionized the process of duplicating documents, making mass reproduction more efficient and accessible than ever before. This innovation had profound implications for education, publishing, and bureaucracy, streamlining workflows and facilitating the dissemination of information on an unprecedented scale. 

But Edison's contributions didn't stop there. In the same year, he unveiled perhaps his most astonishing invention yet: the phonograph. This groundbreaking device allowed for the recording and playback of sound, capturing the human voice and preserving it for future generations. The phonograph's impact was nothing short of revolutionary, laying the groundwork for the modern music industry, revolutionizing entertainment, and fundamentally altering the way people experienced and interacted with sound. 

The collective impact of these inventions was nothing short of transformative, reshaping society, commerce, and culture in profound and enduring ways. Together, they represent the pinnacle of 19th-century innovation, a testament to human ingenuity, creativity, and the relentless pursuit of progress. 

Cultural Factors  

There were many significant cultural events that took place in the 1870s. First, there was the inaugural Major League Baseball (MLB) game marked the beginning of organized professional baseball in the United States. Played on April 22, 1876, between the Boston Red Stockings and the Philadelphia Athletics, this event laid the foundation for what would become America's pastime. Baseball quickly captured the nation's imagination, evolving into more than just a sport but a cultural phenomenon. It became intertwined with American identity, fostering a sense of community and belonging across the nation. The growth of MLB has had a profound impact on American culture, influencing everything from literature to film and shaping countless childhoods. 

The opening of the Metropolitan Museum of Art (the Met) in New York City marked a pivotal moment in the cultural history of America. Founded on April 13, 1870, and officially opened to the public on February 20, 1872, the Met quickly established itself as a premier institution for art and culture. Housing an extensive collection spanning thousands of years and cultures, the Met became a hub for artistic expression and education. Its impact extends far beyond New York City, influencing the development of art appreciation and education across the nation. The Met continues to be a symbol of cultural enrichment and a testament to the enduring power of art to inspire and unite. 

P.T. Barnum's circus, famously known as "The Greatest Show on Earth," revolutionized entertainment in America. Founded in 1871, Barnum's circus captivated audiences with its extravagant performances, including exotic animals, acrobats, and sideshow attractions. Barnum's ability to captivate the public's imagination and create larger-than-life spectacles made him a cultural icon. His circus provided entertainment and reflected society's fascination with the extraordinary and exotic. However, it's also worth noting that Barnum's shows often exploited human and animal performers, raising ethical questions about entertainment and exploitation that continue to resonate today. 

The completion of Central Park in New York City marked a significant milestone in urban planning and public space design. Designed by Frederick Law Olmsted and Calvert Vaux, Central Park provided a much-needed green space in the heart of Manhattan. Its creation was a response to the rapid urbanization and industrialization of New York City, offering residents a respite from the hustle and bustle of city life. Central Park became a symbol of democratic access to nature and recreation, serving as a model for urban parks across the country. Its impact extends beyond recreation, influencing the development of urban planning and landscape architecture, and fostering a sense of community and connection to nature in urban environments. 

Environmental Factors

Established in 1872, Yellowstone National Park stands as the world's inaugural national park, a testament to conservation efforts. Nestled primarily in Wyoming, it spans across Montana and Idaho, encapsulating a diverse landscape of geothermal wonders, pristine forests, and abundant wildlife. Its significance extends beyond its natural beauty; it symbolizes a pioneering concept of preserving wilderness for future generations. Yellowstone showcases the harmonious coexistence of geothermal features like Old Faithful with diverse ecosystems supporting bison, wolves, and grizzly bears.  

Transportaion and Infrastructure  

The construction of the Brooklyn Bridge, one of the most iconic landmarks in New York City, began in 1870 and was completed in 1883. It was a monumental feat of engineering at the time, spanning the East River to connect the boroughs of Manhattan and Brooklyn. The construction of the Brooklyn Bridge was overseen by a talented team led by John Augustus Roebling, a German-born engineer. 

Roebling's design for the Brooklyn Bridge incorporated several innovative features, including the use of steel wire cables to support the bridge's weight. Construction began with massive stone foundations sinking on the Brooklyn and Manhattan sides of the river. Once the foundations were in place, workers began erecting the bridge's towers using a system of cables and pulleys. 

Tragically, John Roebling died early in the construction process due to an injury sustained on-site. However, his son, Washington Roebling, took over as chief engineer and oversaw the project's completion. Washington Roebling himself suffered a debilitating injury during construction, leaving him bedridden for much of the bridge's construction. Despite his physical limitations, Roebling continued to oversee the project by communicating with his engineers and workers through his wife, Emily Roebling, who became an integral part of the bridge's construction effort. 

The Southern Pacific Railroad's line from Los Angeles to San Francisco was another significant engineering achievement of the late 19th century. Completed in 1876, this railway line connected two of California's largest cities and facilitated the transportation of goods and passengers between them. 

The construction of the Southern Pacific line was a massive undertaking that involved overcoming formidable geographic obstacles, including mountain ranges and rugged terrain. Engineers and laborers worked tirelessly to lay tracks, construct tunnels, and build bridges to create a viable railway route between Los Angeles and San Francisco. 

One of the most challenging sections of the Southern Pacific line was the Tehachapi Pass, in the Tehachapi Mountains north of Los Angeles. To traverse this mountainous terrain, engineers devised innovative solutions, including the construction of a series of looping tunnels known as the Tehachapi Loop. This engineering marvel allowed trains to gain elevation gradually, making it possible for them to navigate the steep grades of the pass. 

The completion of the Southern Pacific line revolutionized transportation in California, providing a faster and more efficient means of travel and spurring economic growth and development along its route. Both the Brooklyn Bridge and the Southern Pacific Line stand as testaments to the ingenuity and perseverance of the engineers and laborers who built them, leaving a legacy that continues to inspire awe and admiration to this day. 

Closing This Capsule 

That’s the 1870s! It was such a busy time for the country that was still recovering from the effects of a deadly conflict but was also on the cusp of the Gilded Age. Don’t miss our next Realty Time Capsule where we will look at the 1880s. 

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For a deeper understanding and look into these topics check out these titles:

History of the Reconstruction period:

• "Reconstruction Updated Edition: America's Unfinished Revolution, 1863-1877" by Eric Foner

• "Reconstruction: A Concise History Illustrated Edition" by Allen C. Guelzo