How Much Is an Acre of Land in Texas Worth
Whether you’re looking for sea-level plains of rural rolling hills, you can surely find an attractive location across the Lone Star state. Texas has vibrant regions with unique landscapes, famed history, and opportunities for adventure and diverse activities.
The state is a preferred place of living for increasing numbers of people thanks to affordable housing, low taxes, and better employment opportunities. It also has top-notch education, friendly people, tasty food, and many entertainment options. Moreover, it’s one of the warmest states with sunshine all year-round.
All of this just goes to show that it’s no wonder that Texas ranks second for relocation activity nationwide. Census estimates outline that in 2019, the state welcomed around 537,000—582,000 new residents from the US, the bulk of which come from California. Also around 192,000 —222,000 new Texas residents come from outside the country. If you’re among those looking to relocate or simply start a new chapter in this state of plenty, continue reading our analysis of Texas land prices.
Understanding Current Land Prices in Texas
Texas land prices are reported under small land sales and rural land sales. Small land sales involve a piece of land that is up to 200 acres. The Far West Texas region, however, is the exception — small land there can range from 500 to 8,000 acres. Small land sales trends are mainly driven by residential, recreational, or small farm use. On the other hand, rural land sales refer to the sales of undeveloped land. These sales are typically driven by farming and manufacturing activity.
Texas land can be classified into six main regions:
- North Panhandle and South Plains
- West Texas
- Northeast Texas
- Coastal Prairie-Gulf Coast-Brazos Bottom
- South Texas and Coastal Plains
- Austin-Waco-Hill Country
Each region has a unique landscape and geography features such as climate, landforms, and vegetation, which affect the price of land per acre. The size of the overall plot, terrain, and demand are also important factors for defining the land price.
The global pandemic spurred demand for rural land in Texas. According to recent data, the statewide land sales volume jumped by 33.17% to 8,147 sales. These numbers reveal that during the uncertain times, an increased number of land buyers started flocking to rural environments. The average price per acre grew 9.43% year-over-year to a record high at $3,249 an acre.
The prices in the Northeast region rose 3.99% to $5,036 per acre. The number of sales jumped by 22.51% and total dollar volume increased by 32.61%, reaching $408.6 million. Similarly, the Gulf Coast-Brazos Bottom prices jumped by 8.30% to $6,887 per acre. Wharton County accounted for larger than regular sales in this region.
In Central Texas, Austin-Waco-Hill Country prices remained relatively steady, noting a slight increase of 0.95% to $4,146 per acre. In West Texas, sales price per acre saw a modest growth by only 0.36% to $1,657. However, the area saw strong market demand, with sales volume exploding by 40.69% to 892 sales. South Texas noted only a slight jump in prices of 2.51% in the fourth quarter of 2020, reaching $3,919 per acre. Atascosa and Nueces Counties were most active in the region.
On the other hand, land sales price noted a sharp decline in the Panhandle and South Plains region. Even though sales volume expanded, prices retreated, falling 7.93% to $1,091 per acre in the fourth quarter. Experts argue that such a low price might reflect the weak fundamentals in agricultural products markets and dropping oil prices.
The average price per acre of small land grew 3.8% year-over-year to $6,471. In Panhandle and South Plains, the price jumped by 4.8% to an average of $3,913 per acre. Likewise, in Northeast Texas, costs per acre increased 5.2%, reaching $10,568. In Gulf Coast-Brazos Bottom, the average price per acre of small lands is $11,675, a 4% increase year-over-year. South Texas prices saw a significant increase of 7.4% to $8,926.
Conversely, in the Austin-Waco-Hill Country region, the average price per acre decreased by 0.06% to $9,769. In Far West Texas, prices declined by 6.6%, reaching $450 per acre.
The number of small land sales increased in all regions. At 53%, Far West Texas saw the strongest increase, followed by Austin-Waco-Hill Country with 33%. However, the average size for small land sales dipped 3%, to 30 acres.
How Much Is Land in Texas in the Houston Area?
Houston is the second-largest metro area in Texas and it’s ranked third best place for living in Texas. The area has experienced rapid population growth driven by its booming job market and relatively low cost of living. Houston is part of the Northeast Texas region and Dallas-Fort Worth-Arlington, Longview, Sherman-Denison, Texarkana, Tyler, and Wichita Falls areas. The average price per acre in the region for small lands is $10,568, whereas rural land costs $5,036.
Where Is Land the Cheapest in Texas?
The land is most affordable in West Texas. You can find a cheap plot of land in this region for farms or ranches. Far West Texas is very popular with those looking for hunting land. The Panhandle and South Plains region also has affordable plots of land. The area consists of flat topography. Thanks to the easy access to groundwater for irrigation, it’s rich in cropland.
Depending on your land use, purchasement in these regions can be a great investment with huge returns.
The vacant land you choose will affect the feasibility of construction, the building’s value, and the project’s overall price. When weighing in on the land value, it’s essential to consider the location and access to the property. Also, think about the purpose of your investment, what you plan to use the land for and what type of return on investment you can expect in the future. If you need help finding the right property for your investment, Discount Lots can help. Our goal is to help you find exactly what you want and start living your dream!
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