Real Estate collapsed in the late 80's-early 90's due to the changed US tax code of 1986 which removed the capital gains tax benefit of owning and selling real estate. (Capital gains were taxed on only 40% of the actual gains thus giving most r.e. investors 60% free money. Take that away and you take away the incentive.) http://en.wikipedia.org/wiki/Tax_Reform_Act_of_1986 http://en.wikipedia.org/wiki/Capital_gains Is anyone here old enough to remember the reworked tax code of '86?