1926 Miami hurricane: Florida's turning point to economic depression
In 1925, investors began to hear negative reports about Florida investments. New York bankers and the IRS began to investigate Miami investments. Due to railroad gridlock caused by the massive amount of construction supplies being sent to Miami area the railroads called an embargo from October 1925 to May of 1926 permitting only necessities to be shipped. These factors did little to slow the growth in Miami.
The hurricane of 1926 was devastating to the Miami population and it's investors. After the Hurricane people lost faith in the Florida land market and were afraid to invest in the area. Thousands of families moved out of the Miami area after the hurricane and many investors and developers went bankrupt. It would take years to rebuild Florida land market. The nation wide depression in 1929 had little effect on the Florida land because it was already devastated by the effects of the hurricane.
The hurricane of 1926 was devastating to the Miami population and it's investors. After the Hurricane people lost faith in the Florida land market and were afraid to invest in the area. Thousands of families moved out of the Miami area after the hurricane and many investors and developers went bankrupt. It would take years to rebuild Florida land market. The nation wide depression in 1929 had little effect on the Florida land because it was already devastated by the effects of the hurricane.