The Alabama real estate bubble of the 1810s was a real estate bubble centered on Huntsville, caused by increasing cotton prices resulting from demand from English textile manufacturers, relatively high cotton yields in Alabama, as well as general speculation.
[2] By 1819, acreage prices plummeted to around $0.20 per acre due to the Panic of 1819 and increasing global supply of cotton.
[5] Furthermore, the area around Huntsville, Alabama, although not in the Black Belt, had easy access to the Tennessee River, which reduced transportation costs to New Orleans, where cotton could be sold and exported.
Efforts to tighten its monetary policy and call in loans contributed to the Panic of 1819 and caused property and commodity prices to fall.
In addition, national and global cotton production proved elastic and quickly increased.