Homesteading and Modern Land Development

Chapter 9 demonstrates that there was a negative homestead effect on the development of homesteaded lands compared to lands that were sold. In other words, even after 100 years of the date of the initial homestead patent being issued, those lands were less likely developed. This finding is very robust and does not depend on any measure of land quality or particular measure of later development. The effect, however, is driven by the earliest homesteading, and our evidence shows that it stemmed from homesteaders “being in the way” of early commercial development.