Sunday Favorites: The Boom that Blew Away

The 1920s were an era of big development in Florida. Luxurious hotels began popping up along the coast, offering season residents an lavish experience in the midst of the Florida wilds. While the Great Depression certainly played a large part in bursting this boom, it was a natural disaster that really sealed the deal.

While development was steady in southwestern Florida from the mid-1800s into the twentieth century, the 1920s was a particularly faced paced and fundamental era for expansion, particularly in Sarasota. In October of 1922, Chicago capitalist Andrew McAnsh constructed the Mira Mar Hotel and Apartments on South Palm Avenue in Sarasota, creating a grand standard for construction that transformed Sarasota from an agricultural village to a coveted, world-famous resort destination. Thousands of developers, promoters and real estate investors poured into the Sunshine State to capitalize on the land grab. The frenzy was comparable to the Gold Rush in California, or land rush in Oklahoma. In 1925, a reported 400,000 people migrated south into Florida increasing the permanent population to nearly 1.3 million, twice the size it was 15 years prior, according to historian Jeff LeHurd in his book,  Sarasota Roaring Through the 20s. Hundreds of these visionaries shared their rags to riches success stories. Walter V. Colman, for instance, was said to have left his hometown of Detroit with $80 in his pocket and  an overpowering ambition. During the 1920s he became a millionaire after opening the Belle Haven Hotel on what is now Tamiami Trail in northern Sarasota. (The hotel is now part of the Ringling School of Art). Another early investor, Andrew McAnsh opened the Mira Mar Hotel in 1924, cementing Sarasota emergence as a destination for wealthy winter visitors. The hotel, and subsequent sand Mira Mar Casino, were considered  the gems of the West Coast, LaHurd wrote, equipped with many extravagant amenities and acting as a  home away from home for swanky residents. However, the Miami Hurricane of 1926 shattered the confidence of investors who had been flocking to Florida during the land boom. The catastrophic event highlighted the vulnerability of the area to natural disasters and raised doubts about the sustainability and resilience of the booming real estate market. Prospective buyers and investors became wary, causing a decline in demand for properties and leading to a subsequent decrease in prices. The hurricane struck Miami on September 18, 1926, causing widespread devastation. The powerful winds and storm surge ravaged buildings, infrastructure, and communities in the area. Many homes, businesses, and incomplete construction projects were destroyed or severely damaged. The extent of the damage, approximately $105 million (the modern equivalent of $165 billion), undermined investor confidence and led to substantial financial losses, according to the National Weather Service. The hurricane also resulted in the tragic loss of lives. The official death toll was estimated to be around 400, although some reports suggest the actual number may have been much higher. The loss of human lives and the subsequent impact on families and communities further shook the region's stability and had a psychological impact on potential investors. The destruction caused by the hurricane had profound economic consequences. Insurance companies faced significant payouts for damages, leading to financial strain. The cost of rebuilding was high, and the overall economic activity in the region slowed down. The hurricane's impact on infrastructure further hindered the growth and development of the region. Roads, utilities, and other essential services were disrupted or destroyed, resulting in delays in rebuilding efforts and hampering the flow of investment and economic activity. Then, in the fall of 1929, the stock market crashed, triggering a severe economic downturn across the U.S. It had a profound and devastating impact on the Florida land boom, exacerbating the existing economic challenges and ultimately leading to its collapse. As the nation plunged into a period of widespread unemployment, bank failures, and economic instability, consumer confidence plummeted. People faced financial hardships, limiting their ability to invest in real estate and causing a sharp decline in demand for properties in Florida. The economic crisis halted many infrastructure projects and construction initiatives that were vital to the Florida land boom. With limited funds and a lack of investor interest, major development projects were delayed or abandoned, resulting in a stagnation of growth and a loss of momentum. In combination, these factors created an atmosphere of uncertainty and financial hardship, causing the Florida land boom to end abruptly. The Miami Hurricane of 1926 and stock market crash of 1929 both served as a pivotal events that exposed the risks associated with speculative investments and marked a turning point in the region's economic trajectory.