Texas Land Pricing Guide 2023 (2024)

FAQs

How much is an acre in Texas 2023? ›

$4,297/acre average in Q2. $4,426/acre average in Q3.

“Feverish 2021 demand for land, coupled with a dearth of listings, pushed prices up a remarkable 29 percent to $3,954 per acre statewide,” said Gilliland. “Total dollar volume reached a record $3.4 billion, up 97.6 percent over 2020.” In 2021, a record 846,347 acres changed hands, an increase of 53 percent.

Looking specifically at Texas: Farm real estate average value: $2,650/acre, an 11.3% increase from 2021. Cropland average value: $2,420/acre.

“In the aftermath of the COVID-induced economic lockdown, 2021 Texas rural land markets have exploded in a burst of activity,” Gilliland said in a news release. The vigorous demand sent the statewide price 9.5 percent higher than 2020 prices to a record high at $3,251 per acre, he said.

Land investment may not be as common as residential real estate, rental properties, or REITs, but it's looking like a solid choice in 2023, and beyond. Investments in land have steadily increased over the last decade. Investors may purchase land for agricultural purposes or residential and commercial real estate.

The average price target is $10.50 with a high forecast of $13.00 and a low forecast of $8.00. The average price target represents a 26.05% change from the last price of $8.33.

While some areas may experience an increase in housing prices, others may experience a decline. In Dallas, TX, housing prices are expected to decrease by 0.1% as of April 2023, followed by a further decline of 0.3% in June 2023, but are projected to increase by 0.7% by March 2024.

Overall, buying land in Texas as an investment can be a safe and practical choice for new and seasoned investors. It is an excellent way to get into real estate investment, as the costs to get started are very low compared to other types of investments.

Land prices also tend to drop during a recession period, but they almost always rise immediately after the downturn is over, which is why it might be a good time to consider buying land to build a home for the future or for investment purposes.

In 1993 the Texas Legislature passed a law seen in Texas Local Government Code, Section 235.042. The law allows for individual counties to prohibit hunting with firearms (or bows) on lots or tracts of land that are 10 acres or smaller and located in the unincorporated area of the county in a subdivision.

Where is the cheapest land in Texas? ›

'Cheapest' places to buy land in US (five acres)

Among the least expensive areas to buy five acres of land, Hudspeth County, Texas tops the report category with the lowest price for five acres of land listed at $1,200.

Is it a good investment? Yes. Land is a tangible investment that will continue to go up in value over time. So, if a buyer purchases land today for $250,000, then in a few years, its value can increase to $400,000.

So for both 1 acre and 5 acre plots, the cheapest states to buy land in 2023 are New Mexico, Arizona, Mississippi, followed by Colorado and California. Some great news for you here is that at Compass Land USA, we do a lot of work in Colorado, and Arizona.

1. Jay Kleberg and The King Heirs. King Ranch, spans an astounding 900,000 acres across a vast expanse of South Texas.

2023 is a balanced year for housing supply and demand. This is ideal for retail purchasers and rental property investors. No longer a “seller's” market. Rising interest rates raise the monthly mortgage payment, which reduces homebuyers and lowers property values.

Perhaps there's a perfect property that comes up for sale and you don't want to lose it, so buying the land now and building later makes sense. From a financial perspective, it may be much more feasible to split up the investments and have time to rebuild your savings before being ready to build.

Steady demand

But over the past two years, demand for all types of land has been accelerating. From 2020 to 2021, farmland average prices grew 6%.

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Will 2023 be a good time to buy a house? ›

Homebuyer.com data analysis indicates that, for first-time home buyers, June 2023 is a good time to buy a house relative to later in the year. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.

The state is still in seller's market territory: Demand remains high, and prices are still up year-over-year, despite the decline in the last several months.

Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point. Figures are the predicted quarterly average rates for the 30-year fixed-rate mortgage.

A 2022 report from CoreLogic's ClosingCorp found that the national average for mortgage closing costs on a single-family home, excluding transfer taxes, was $3,860. By contrast, Texans pay an average of $4,548, which amounts to about 1.5 percent of the average Texas home's sale price.

All property is taxable unless federal or state law exempts it from the tax. These exemptions may exclude all or part of your property's value from taxation. Property owners have a right to reasonable notice of increases in their appraised property value.

#1. Farm Land: With the agricultural market increasing, investing in farmland has emerged as a profitable opportunity. Per statistics, farms have an average of 11.5% yearly return. Plus, having your money locked in farmland investment will settle out your risks and will generate a passive income source.

Falling home prices could point to it being a good time to buy, except that inventory is still low and inventory tends to drop further during a recession. For the same reasons you may be hesitant to invest in real estate, homeowners may be hesitant to sell.

In addition, during recessions, people with access to cash are in a better position to take advantage of investment opportunities that can significantly improve their finances long-term.

Will house prices go down in a recession? While the cost of financing a home typically increases when interest rates are on the rise, home prices themselves may actually decline. “Usually, during a recession or periods of higher interest rates, demand slows and values of homes come down,” says Miller.

How many acres do you need to be ag exempt in Texas? Ag exemption requirements vary by county, but generally speaking, you need at least 10 acres of qualified agricultural land to be eligible for the special valuation.

How many acres do you need to be exempt in Texas? ›

Ag exemption requirements vary by county, but generally you need at least 10 acres of qualified agricultural land to be eligible. Check with your county to verify.

Private Land

More than 95% of the land in Texas is privately owned or managed. You can hunt on the private land that you own or get permission from the landowner to hunt as a guest or pay the landowner to hunt on that land.

Longview, about 130 miles east of Dallas, had the lowest property taxes in the state: Residents there paid an average of $2,084 a year on a typical home worth $201,036 in 2021, according to ATTOM's data. The effective tax rate was 1.04%.

Land can be expensive to trade into and out of. There's real estate agent commissions, surveys, title insurance premiums, transaction taxes, etc. and all of these costs (those that you pay when you buy land and those that you pay when you sell it) reduce your profit.

Real estate is renowned for being a profitable investment since it provides both revenue (via rentals) and appreciation over time (selling your property for a profit). If you're wondering why it is important to own land, you must understand that real estate investments are an excellent way for expanding your wealth.

Move to La Villa

If you're ready to build a home, some of that land could be yours. The city is offering free land to qualified new residents.

What county in Texas has the most land? ›

Brewster County, Texas has 6,183.8 square miles of land area and is the 1st largest county in Texas by total area.

How much is an acre of land in Texas? The average price per acre of rural land in Texas was more than $4,000 per acre in 2022, according to the Texas Real Estate Research Center. That average climbed each quarter: $4,116/acre average in Q1 of 2022.

Unfortunately, there are no states without a property tax. Property taxes remain a significant contributor to overall state income. Tax funds are used to operate and maintain essential government services like law enforcement, infrastructure, education, transportation, parks, water and sewer service improvements.

Alaska has the largest land area in the United States followed by Texas and California. Alaska has more land area than Texas, California & Montana combined. Eight (8) states have over 100,000 square miles of land area. Alaska accounts for more than 17% of the land area in the United States.

List of the biggest cities in Texas by area. Houston is the biggest city in Texas with a total area of 599.59 square miles (1,552.93 km²).

It's the largest property for sale in Texas and one of the biggest spreads offered in all of North America. Kentucky businessman Brad Kelly, who's one of the biggest landowners in the U.S., assembled the mammoth Trans Pecos tract and is offering it for sale for — get ready for it — $320 million.

'Cheapest' places to buy land in US (five acres)

Among the least expensive areas to buy five acres of land, Hudspeth County, Texas tops the report category with the lowest price for five acres of land listed at $1,200.

What Can You Do With One Acre of Land? An acre is equivalent 43,560 square feet. To give you an idea of exactly how large one acre is, consider that many developers are able to squeeze about 15 houses per acre. It is just about the size of a football field.

Overall, buying land in Texas as an investment can be a safe and practical choice for new and seasoned investors. It is an excellent way to get into real estate investment, as the costs to get started are very low compared to other types of investments.

How many acres of land can a person own in Texas? ›

Determining Urban or Rural Homesteads in Texas

Rural homesteads are limited to 200 acres for a family and 100 acres for a single adult, including improvements on the property. An urban homestead is limited to ten acres with improvements, which must be in adjacent lots.

Longview, about 130 miles east of Dallas, had the lowest property taxes in the state: Residents there paid an average of $2,084 a year on a typical home worth $201,036 in 2021, according to ATTOM's data.

How much does building a house cost in Texas? Building a house in Texas is expected to cost anywhere between $235,000 and $660,000, on average new home constructions in Texas cost around $447,500.

It is customary for builders to place at least 2-3 homes per acre, depending on the landscape. With custom home construction, lot sizes generally tend to be a little bigger.

However, the median size of a family house is 2,261 square feet or 0.05 acres. So, on a 5-acre parcel, you could fit 96 homes. That's enough to create your community!