General

The Texas Land Market – A Buyer’s Guide

From the rugged mountains of Big Bend to the sprawling pine forests of East Texas, the Lone Star State is a land lovers’ paradise. As demand for land continues to surge, experts say it’s important to consider the many factors that go into making a smart land purchase.

The age-old adage “location, location, location” is usually the first place potential buyers start when searching for their dream property. It’s a simple enough equation—a good location typically means proximity to major highways, economic hubs, local attractions, and even conveniences like grocery stores and restaurants.

While the location of your texas land market purchase can have a direct impact on price, it also depends on the type of land you’re buying. For example, if you’re interested in investing in an oil field, mineral rights can have an extremely significant impact on the value of your land.

Another factor that may contribute to a particular land market is its climate and amenities, such as recreational activities. The weather in Texas can vary widely, but many buyers are drawn to the state’s outdoor recreation opportunities. As a result, the state’s recreational land market is one of the strongest in the country.

A number of other factors contribute to the strength of Texas’ land market, including its geographic diversity and relative affordability. For example, the Austin-Waco-Hill Country region has been a hot market for several years. The area is popular with homebuyers who want to escape the hustle and bustle of urban living. The region’s abundant wildlife, affordable prices, and easy accessibility to the city have made it a desirable destination for aspiring ranchers.

In the first quarter of 2023, sales in the region were up by double-digit percentages. However, the brisk activity has now slowed down significantly from the frenzied levels that were recorded in early 2022. This slowed pace of growth is largely due to interest rates edging higher.

With interest rates poised to rise, the next few years will likely see a decrease in market activity, but demand is still high, says Gilliland. He notes that wealthy investors are particularly active in this market, and retirees and lifestyle buyers are drawn to Texas’s recreation and scenery.

The Center’s quarterly and annual market reports analyze data from large rural land sales in the state’s seven regions. Data is available for each region, as well as sub-regions. These articles break down market trends for the different types of land available in each region, from irrigated cropland and CRP to rangeland, timberland, and hunting leases. They also provide information about the land prices and leasing rates in each region. These regional statistics help analysts understand local land markets and make sound investment decisions. In addition, the Center’s website features detailed, interactive maps of each region that show a variety of demographic and economic characteristics of the land market.