Ontario Property Prices

Last week I came across a letter that referenced the price of land in Ontario in 1884. I've seen references to property prices before but this was the first time I thought about what those prices really mean. In 1884 prime property sold for $200 per acre and the rest sold for $150 per acre. I got online and did some research about what $200 in 1884 would translate to money today. Apparently $200 from 1884 converts to about $5,000 in 2018, an immense difference!

However, I went one step further. After all, the value of land is related to more than just a simple calculation of inflation over time. In 1884 Ontario, California was in its infancy, whereas today Ontario is part of the greater Los Angeles urban area. I've already spoken about the population growth in Ontario from its initial 200 residents to 170,000 people. The population increase is just one symptom of people wanting to reside in Southern California. Rent and property prices are another symptom, as more people need housing, property prices increase.

So I returned to the internet for more answers. How much does an acre of undeveloped land cost in Ontario today? Any guesses from the audience? Drum roll... $500,000! For one acre of land. That's 100 times the price (taking inflation into account) of land in 1884.