🔥 Florida’s Fiery Fortune Frenzy: A Land Boom That Blazed Past Rockefeller 🏝️

Feb 20, 2025

From the Bubble Blog. -

Most people think of the Roaring Twenties as a time of jazz and dancing. Yet few realize that Florida’s real estate market created fortunes that even outshone John D. Rockefeller—until those fortunes vanished. 💸

The Buildup

Florida in the early 1920s was not just warm and sunny. It was also a magnet for dreamers chasing fast money. Newspapers like The Miami Daily News printed massive, phonebook-sized issues filled with property ads. One edition hit 504 pages and weighed 7.5 pounds. Everyone seemed to believe they could buy land one day and flip it for a big profit the next. 💡

Downtown Miami lots, once worth $1,000 in the early 1900s, shot up to as much as $1,000,000 by 1925. That’s a 1,000-fold increase in two decades. Near West Flagler Street, prices climbed from $30 per acre to $75,000 in 15 years. These jumps would make even modern tech stocks look slow. 🚀

The Players

Wealthy investors, like property mogul Barron Collier, bought land across southwest Florida. At one point, he was richer than John D. Rockefeller. Some locals made fortunes overnight. One man bought a small apartment house for $20,000 with only $2,000 down. On his way to get a haircut, he resold it for a $10,000 profit. Stories like this spread like wildfire and attracted more speculators. 🔥

The Peak of Madness

Miami Beach joined the party, too. Lots near Lincoln Road leaped from $7,000 to $35,000 in six weeks. Another plot soared from $20,000 to $50,000 in just three weeks. A local named John Jackson Bennett recalled that people often sold property after holding it for only two days. It was like betting at a casino—everyone believed the odds were in their favor. 🎰

Economist Roger Babson summed it up best: “The whole thing was ridiculous…but people still expected to sell at a profit.” It was a classic case of herd behavior fueled by excitement and greed. When everyone believes prices will go up forever, trouble usually follows. ⚠️

The Warning Signs

High prices were not the only danger. Many speculators used borrowed money. They paid a small deposit, flipped the land for a big mark-up, and moved on. Leverage supercharged gains—but also losses. The market relied on a never-ending chain of buyers. Once that chain broke, the system began to wobble. 😬

In one bizarre tale, an older man spent his life savings—$1,700—on Florida land. His sons thought he was crazy and committed him to a sanitarium. By 1925, that same land was worth $300,000. He then sued his sons for locking him up. It was peak mania. 🤯

Lessons for Today

Bubbles Repeat: No matter the era, when everyone is rushing in, be cautious.
Check the Fundamentals: A drop is likely when prices disconnect from reality.
Beware of Easy Credit: Borrowing can boost returns—and magnify losses.
Look for Warning Signs: Media hype, quick flips, and rapid price spikes often signal a bubble.

Markets soar when confidence is high. But they can also crash fast when that confidence wavers. The Florida Land Boom is a lesson for investors today: pay attention to risk, or risk it all. 🎯

Final Thoughts

It’s easy to look back and laugh at the idea of buying property on a whim. But in the heat of a craze, logic often fades.

Take a moment to ask yourself: “Would I jump into a market just because everyone else is doing it?” If your answer is “yes,” you may find yourself chasing illusions instead of real value. 🤔

When the party rages on, it can feel like you’re missing out if you don’t join in. Yet history shows that boom-time caution often pays off in the long run. So, will you heed the warning from Florida’s wild land rush, or will you gamble on the next big bubble? 🎲