Texas rural land values rose for the sixth consecutive year in 2016, according to preliminary data from Charles Gilliland, research economist from the Real Estate Center at Texas A&M University.
The statewide value of an acre of Texas rural land rose 5 percent in 2016 to an average value of $2,554 per acre—a record high.
Statewide rural land prices increased in the first quarter of 2017, moving up 3.26 percent to $2,563 per acre from the first quarter 2016 prices of $2,482 per acre. The statewide typical size of 1,501 acres increased 240 acres over the first quarter 2016 size.
The 5,343 sales pushed transaction volume up to 353 sales more than in the first quarter of 2016.
Trends in regions across Texas varied.
Values are higher in the Panhandle and South Plains region of the state, according to LandOwner newsletter. This is the region most dependent on grain, cotton and cattle prices with little influence from energy prices. That area saw values rise 10.9 percent to an average of $1,162 per acre and 9.2 percent on an inflation-adjusted real basis. This follows a 7 percent annual increase in 2015 on a nominal basis and an 8 percent decline on a real basis.
Far West Texas saw industrial uses associated with the drilling boom in the Permian Basin drive prices dramatically higher in the fourth quarter of 2016 and continue at those levels in the first quarter of 2017.
West Texas regional markets experienced strong price growth but dwindling levels of activity. At a 9.2 percent annual growth rate, prices expanded to $1,486 per acre compared with $1,360 per acre in 2016.
Northeast Texas reported robust market activity in 2016 with prices climbing more than 8.6 percent. The 1,781 sales eclipsed first quarter 2016’s totals of 1,576 sales. Prices continued their strong recovery from 2011 lows at $3,748 an acre.
Gulf Coast-Brazos Bottom land markets saw prices decline for the fourth straight quarter, settling at $5,606 as low energy prices finally took a toll on the Houston economy. The 1.9 percent decline from the first quarter 2016 price marked the fourth straight quarterly price decline.
South Texas markets appear to have turned a corner in the fourth quarter of 2016 with a 1.3 percent price increase, continuing with a 3.1 percent rise in first quarter 2017 prices. The $3,507 per acre price coincided with a sizable expansion in activity at 498 sales, a 27 percent increase over first quarter 2016 levels.
The Austin-Waco-Hill Country area had price growth continue at muted levels in the fourth quarter of 2016, rising 1.8 percent and continuing at 1.9 percent in the first quarter of 2017. The inflation-adjusted real price declined a modest 0.2 percent. The nominal price was $3,571 per acre based on 1,527 transactions, a significant increase from 1,464 in first quarter 2016.
After living my entire life on a few acres in the middle of nowhere..
Keeping things clean, quiet.. the ‘trouble’ run off, the animals fed, the kids fed, the neighbors doing well..
We’re being told that the influx of people fleeing other states are willing to pay more
for our property and taxes than we can afford, so… we need to pay up or get out.
They claim it’s all based on property values.. since it’s well taken care of they can put our
taxes as high as they need to based on those values, because “that’s what other property like yours sells for”.
They say it’s an intentional effort to end Hobby Farming in Texas.
We say that sounds more like some kind of hostile takeover, or forced development..
which is NOT why we’ve paid our taxes without much complaint for so long
we didn’t invest our lives in this land so our county officials could operate at a higher profit margin…
What a disappointment. I couldn’t advise people any harder to not invest in this county.
Looking to sell out land in Northeast Texas. We have buyers swnd us mail with offers, but I feel they are low balling us. We have 10 acres of rural land and they offer us $7k. They also told us we would not be able to get more. Would like advise on how to sell out land since we live out of state.
I have been looking for land to buy and it seems like 10 acres goes for more than 7k for sure.
@ Karla B my family and I are looking to purchase land we are in DFW area but looking for something rural. Could you tell me the closet city to the property you are looking to sell also any info about the property would be great.
@Karla Our family is looking to purchase land in NE Texas. I’m pretty sure 7k for 10 acres of rural land is not the right price. I’m willing to talk to negotiate the actual price down there. Let me know where your land is situated. Also if you can provide your contact so that I can get in touch.
If anyone has land for sale outside the city limits of San Antonio maybe like atascosa, lytle, no further than 45 mins from San Antonio downtown maybe 1 hr max away but I want land with no restrictions on having farm animals, rv,
Mobile home. Looking for up to 1-5 acres cashier owner Finance. Thanks.
Found this article very interesting. I am in the process of purchasing some land in the Rockport/Fulton …Primarily in the Lamar Point Preserve or Holiday Beach area I have done my homework (I think) on a piece of property appraised at $6,700. I have not had the chance to look at the Vesting Deed. Owner is asking for 23.5k for the land which seems to be rather high considering the appraisal value. I am fairly new to this but does that price seem a little high or am I just suffering sticker shock
Maybe 7k per acre. Actually the State economist zines land sells and values. This land is worth $2k an acre unimproved
Hi , getting into looking for land out in the country 10 acre at age 66 .is that to late to being looking.
I have 15 acres in total for sale. 3 separate 5 acre parcels. West Texas close to Ft. Stockton in Pecos County. I’ve owned it for over 15 years, looking to sell. Contact bottleflipr@gmail.com