Upon his arrival, Lick began buying real estate in the small village of San Francisco. The discovery of gold at Sutter's Mill near Sacramento a few days after Lick's arrival in the future state began the California Gold Rush and created a housing boom in San Francisco, which grew from about one thousand residents in 1848 to over twenty thousand by 1850. Lick himself got a touch of "gold fever" and went out to mine the metal, but after a week he decided his fortune was to be made by owning land, not digging in it. Lick continued buying land in San Francisco, and also began buying farmland in and around San Jose, where he planted orchards and built the largest flour mill in the state to feed the growing population in San Francisco.