Price of small tracts of land in Texas reached record high in 2021
Texas Realtors releases the latest edition of Texas Small Land Sales Report
AUSTIN, Texas, July 8, 2022 /PRNewswire/ -- The demand for small tracts of land in Texas remained strong in 2021, pushing the median price per acre to another record high, according to the 2022 edition of the Texas Small Land Sales Report released today by Texas Realtors.
The median price per acre grew 16.4% year-over-year to $7,530 an acre. The total number of small land sales across Texas declined 7.8%, with 9,662 tracts sold.
"Although the median price per acre increased in most of the state, small land sales are still a popular option for buyers looking to own or invest in Texas real estate," said Russell Berry, chairman of Texas Realtors. "These properties are desirable for buyers seeking more space and for developers looking for prime investment opportunities."
The number of sales of small tracts of land increased in the Panhandle and South Plains, Far West Texas and West Texas regions. Six of the seven regions recorded an increase in median price per acre. The Panhandle and South Plains region was the only area that experienced a decrease.
The report also revealed that the median tract size for small land sales in Texas increased 6.7% to 32 acres. The Austin-Waco-Hill Country region had the largest amount of small land sales at 36% of the total sales, followed by the North Texas region with 24.4%.
Charles Gilliland, Ph.D., economist with the Texas Real Estate Research Center at Texas A&M University, commented, "The 2021 land sales market saw prices increase remarkably as soaring demand encountered a limited supply of small tracts for sale. The number of sales declined slightly, possibly due to a lack of properties offered for sale, though the search for country getaways continued. Currently, the Federal Reserve has promised rising interest rates. This activity may act to cool the feverish demand for small rural properties."
Small land sales are defined as tracts with total acreage in the first through 20th percentile of size of all land sales. This generally includes sales of 200 acres or less, except in Far West Texas, where land parcels up to 8,000 acres qualify as a small land sale.
Chairman Berry concluded, "Patience is key for people looking to buy land in many parts of Texas. With high demand and not as many properties for sale, it can be difficult to find what you're looking for. You will want to make sure to work with a Texas Realtor who has the expertise to help you navigate the farm, ranch and land market."
About the 2022 Edition of the Texas Small Land Sales Report
The Texas Small Land Sales Report analyzes small land sales data and trends across seven regions of Texas utilizing survey data aggregated by the Texas Real Estate Research Center at Texas A&M University. Texas REALTORS® distributes insights about the Texas real estate market each month, including quarterly market statistics, trends among homebuyers and sellers, luxury home sales, international trends, and more. To view the Texas Small Land Sales Report in its entirety, visit texasrealestate.com.
About Texas REALTORS®
With more than 150,000 members, Texas REALTORS® is a professional membership organization that represents all aspects of real estate in Texas. We are the advocates for REALTORS® and private property rights in Texas. Visit texasrealestate.com to learn more.
Media Contact - Hunter Dodson, [email protected]
SOURCE Texas Realtors
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