Small tracts of land in Texas were the strongest segment of the state’s real estate market in 2015, according to the Texas Small Land Sales Report released by the Texas Association of REALTORS®. That segment saw double-digit increases in sales and price per acre.
“Despite sluggish performance for Texas’ agriculture and oil-and-gas sectors, Texas land sales continued to be incredibly strong in 2015,” said Leslie Rouda Smith, chairman of the Texas Association of Realtors. “As our state’s population and economy have continued to grow, so has the number of Texans looking for getaway homes or development opportunities.”
There were 6,281 small land tracts sold in Texas in 2015, an 18.91 percent increase from 2014.
The Austin-Waco-Hill Country recorded the most small land sales, jumping 19.74 percent to 2,062 sales in 2015.
Across the state, the average price per acre for small land sales increased, rising 10.21 percent to $5,657 per acre. The Panhandle-South Plains area and Northeast Texas were the only regions to show decreases in average price per acre, falling 4.89 percent to $1,749 per acre and 3.5 percent to $7,305 per acre, respectively.
The Gulf Coast-Brazos Bottom had the highest average price per acre with land prices increasing 9.44 percent to $10,002 per acre.
High demand for Texas land drove down the average tract size 13.33 percent to 39 acres statewide.
But average tract sizes increased for the Panhandle-South Plains, Northeast Texas and Gulf Coast-Brazos Bottom and remained flat in the Austin-Waco-Hill Country.
The increases are likely due to a shortened supply of prime land, not a decline in demand.
“Investing in Texas land can yield higher returns than traditional investment options,” said Charles Gilliland, economist with the Real Estate Center at Texas A&M University. “More Texans are purchasing land for recreational purposes or a vacation property, knowing that if they sell in a few years, there’s a good chance they will see a strong return. “
Smith noted the strong land sales activity and development over the last few years has had an impact on inventory and the quality of land available for purchase.