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The Economic Context The Economic Context
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The Real Estate Market in New York The Real Estate Market in New York
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Vacancy across America Vacancy across America
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The Rise of Midtown 2.0 The Rise of Midtown 2.0
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Grand Central Terminal Grand Central Terminal
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Penn Station and the Garment District Penn Station and the Garment District
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Gold Bonds and Skyscrapers Gold Bonds and Skyscrapers
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Who Built the Skyline? Who Built the Skyline?
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Income and Construction: The Evidence Income and Construction: The Evidence
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The Stock Market and the Skyline The Stock Market and the Skyline
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Technological Change and the Cost of Construction Technological Change and the Cost of Construction
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9 Edifice Complex? The Cause of the 1920s Building Boom
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Published:June 2016
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Abstract
The skyscraper boom of the Roaring Twenties has not been subjected to much rigorous study. What caused it? There are two conventional stories: The ego story and the financing story. The ego story says that the building boom of the Roaring Twenties was caused by egos unleashed by the economic euphoria of the day. The financing story says that real estate Gold Bonds were to blame. This chapter argues that the growth of the skyline was a rational response to important structural changes in the economy, which created a tremendous demand for office space in the city; technological progress was also making building skyscrapers much cheaper. The Empire State Building is not representative of the period. Some of the construction was caused by the stock market boom, but the rise of Midtown 2.0, with the completion of Grand Central Station and Penn Station, was the central cause.
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