The Impact of Bubbles – Week 1


A survivor of four recessions in my 45+ year career in real estate, I have learned the importance of the economic cycle and its impact on the land market. It is from that perspective that I watch the economy carefully.

In this series of blogs, we will explore three very strong positive forces that will have a direct impact on land values in 2018 and 2019. But we will also cover three extremely negative forces that will impact the land market.

Please understand that this is being written in very early January so the new tax law is so new that we have not received a complete briefing on all of its aspects. For that reason, we are focusing on the big impacts of the new law instead of any nuances it may contain.

I hope that this series of blogs will help you make your plans for your land investments in 2018.

It is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is land.