Texas land is as vast and diverse as its population. Classified into seven regions, each more unique than the last, those looking to buy property in Texas can invest in anything from rugged desert areas to sea-level plains. Due to demand, size, terrain and availability, the average price of price per acre fluctuates dramatically from region to region.
The seven regions are: Region One: Panhandle and South Plains; Region Two: Far West Texas; Region Three: West Texas; Region Four: Northeast Texas; Region Five: Gulf Coast-Brazos Bottom; Region Six: South Texas; and Region Seven: Austin-Waco-Hill Country.
What is the average price of land in Texas?
The newest edition of the Texas Small Land Sales Report from the Texas Association of Realtors is scheduled for release in June 2018. While we wait for that data, though, it'll still be quite useful to examine the most recent information available from 2017's report.
This research indicates that while the overall volume of Texas small land sales increased in 2016, the average price per acre for the whole state was actually slightly down from the year before, falling 0.3 percent to $5,647. Texan landowners sold exactly 6,992 individual small parcels during this year. The average tract size of these lands also fell, albeit only to 36 acres - a mere three-acre drop. Demand remains fairly strong across the board for Texas land, so with intrigued buyers snatching up everything they can, it should be seen as no surprise that the mean figure for land-tract size is down.
"The average price per acre for small land sales fell 0.3 percent."
As has been true throughout the recent past, there was considerable variance between the seven Texas regions in terms of price during 2016, even though all of them experienced increases.
On the luxury-land end of the spectrum, land in the Gulf Coast shot up to $10,182 per acre. While one might have expected the damage done by Hurricane Harvey to drive prices down in the area classified as Region Five, that did not end up happening. The volume and prices associated with home sales rose in tandem with that of land tracts. By contrast, over in the far western lands of Region Two, buyers paid only $1,318 per acre on average - which was nonetheless an increase from the previous year. The area of West Texas classified as Region Three, meanwhile, came in at a greater value of $3,125 per acre, and the Panhandle's average price per acre is $2,374, according to the most recent data.
Regions One through Three, in fact, are responsible for bringing the mean per-acre statewide cost down considerably. Land in Northeast Texas, South Texas and the Austin/Waco/Hill Country area sold for a much higher price per acre - $8,315, $8,407 and $8,684, respectively. Taking these facts into account, it's reasonable to surmise that while land in West Texas and the Panhandle will certainly offer the cheapest farm and ranch land for sale in Texas, areas like North and South Texas may ultimately end up being better investments for their buyers.
Is buying land in Texas right for you?
Because acreage costs and availability differ greatly depending on the region, potential land buyers should carefully consider where they intend to invest and build up their agribusiness, be it a ranch or a farm. No matter the specific fluctuations of each region - or even the slight price-per-acre dip throughout Texas - economists generally seem to agree that the price of land is rising nationwide, with locals such as Vicki Fullerton, chair of the Texas Association of Realtors, asserting that the Lone Star State as no exception.
"As our state continues to grow and the footprints of Texas cities expand, the demand for rural land will only increase," Fullerton explained in the press release accompanying the 2017 Small Land Sales Report. "At the same time, after consecutive years of rapid growth in real estate land [costs], prices in many regions have leveled off."
Fullerton went on to say that state and local government officials, as well as individuals occupying other positions of community leadership, would be wise to monitor suburban and urban development so that it doesn't adversely impact industries essential to the Texan economy. Such efforts, as well as responsible land segmentation, can help ensure that making a considerable land investment has the potential to be incredibly profitable over time.
At Heritage Land Bank, we take the time to find the exact lending option that best suits your needs. If you're new to the area - or the concept of buying TX land - and want to learn more about specific properties, various market factors or recreational property loans, consult with one of our expert loan officers today! Also, be sure to a look at the rest of