Chapter 5 discusses real property in the form of houses, tracing its history from the advantaged aristocracy to the democratic middle classes. Ferguson opens by using the board game Monopoly as an illustration of this phenomenon. It first became popular in the United States during the Great Depression, which might seem like an odd time for its success. But that is precisely the period when home ownership in America first took off en masse, thanks to Franklin Roosevelt’s New Deal policies.

“The Property-owning Aristocracy”

This section focus on the aristocratic origins of home ownership, which was even tied to the right to vote. Ferguson states that through the 1830s in Britain, the landowning elite were in great shape. Land was high in value, agricultural activity produced income, and raw materials like coal were needed for industrialization. After that time, grain prices fell due to factors such as lower transportation costs, which meant that agricultural income fell along with them.

As Ferguson explains, property itself only really has value (as collateral) to those who lend money, while the borrower’s only security against losing this property is income. As their income decreased, aristocrats became vulnerable. The example he gives is the 2nd Duke of Buckingham, who owned about 67,000 acres in three countries, including the magnificent Stowe House on his estate in England.