Average price for small land sales reaches record high in Texas (2024)

EL PASO, TX (KTSM) – The demand for small tracts of land in Texas remained strong in 2021, pushing theaverage price per acre toanother record high, according to the 2022 edition of the Texas Small Land Sales Reportreleased by Texas Realtors.

Themedianprice 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.
Russell Berry, Chairman, Texas Realtors

“These properties aredesirable for buyers seeking more space and for developers looking for prime investment opportunities.”

The number of sales of small tracts of landincreased in the Panhandle and South Plains, Far West Texasand 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 mediantract size for small land sales in Texas increased 6.7% to 32 acres. The Austin-Waco-Hill Country regionhad the largestamount of small land sales at 36% of the total sales, followed by the North Texas region with 24.4%.

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.
Charles Gilliland, Ph.D., Economist, Texas Real Estate Research Center, Texas A&M University

Smallland sales are defined as tracts with total acreage in the first through 20^thpercentile 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 inmany parts ofTexas. With high demand and not as manypropertiesfor 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, ranchand land market.”

About the2022 Edition of theTexas Small Land Sales Report

The Texas Small Land Sales Reportanalyzes 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 Reportin its entirety, visit texasrealestate.com.