During the decade extending from 1918 to 1928, land values in most American cities practically doubled, as did costs of building construction. This rise corresponded roughly to the increase in the price of commodities. Adequately to comprehend the reasons leading up to increases in land values, it is necessary to go back a few years and to review the conditions which preceded the business and real estate booms which swept over America between the years 1919 and 1926. Between the years 1892 and 1922, the American business barometer was steadily rising. Price levels were continuously going up. This was particularly true of real estate. One could be reasonably certain that one could buy almost any piece of real estate and sell it at a profit within a reasonable time thereafter, no matter what merits, if any, it possessed. Rental returns had been steadily advancing, particularly during the World War period.
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