Thinking about investing in Texas land? You’re not alone. While economic conditions and geopolitical factors have created uncertainty, the Texas land market remains resilient, making it a potentially sound, long-term investment. But before diving in, understanding the costs is crucial. So, How Much Is An Acre Of Land In Texas? The answer varies based on location, market trends, and other factors.
Texas Land Prices: A Regional Breakdown
While overall land sales and tract sizes decreased in 2024, prices have largely remained stable. The Texas Real Estate Research Center reported that the median price per acre in Texas rose to $4,702 by mid-2024, a 3% year-over-year increase. However, price fluctuations differ significantly across the state’s seven distinct market regions:
- Panhandle and South Plains
- Far West Texas
- West Texas
- Northeast Texas
- Gulf-Coast – Brazos Bottom
- South Texas
- Austin – Waco – Hill Country
The price per acre can vary dramatically between these regions, reflecting the diverse landscapes and economic activities within Texas.
Northeast Texas
If you’re looking near the Dallas-Fort Worth area, expect to pay a premium. Northeast Texas land averages around $8,200 per acre, according to the Texas Land Market Latest Developments Report. This higher price reflects the region’s proximity to major urban centers and its desirable qualities.
South Texas
South Texas, encompassing areas like the southern Edwards Plateau, Coastal Plains, and the Rio Grande Valley, has seen prices dip slightly. As of late 2024, an acre in South Texas costs around $5,945, a decrease from previous highs.
Far West Texas
Historically, Far West Texas has been one of the most affordable regions. Even with a 20% annual price jump, the average price per acre remains relatively low at $616.
Land Prices in Texas’ Major Cities
Let’s zoom in on specific metropolitan areas:
Houston
Many Houston-area buyers are looking for farm and ranch land in the surrounding areas. Piney Woods South is particularly popular, offering opportunities for hunting, recreation, and timber harvesting. The value of improved and native pasture ranges from $2,500 to $4,500 per acre, while bottomland hardwood timber acres are cheaper, ranging from $1,500 to $2,100.
Dallas-Fort Worth
Rural land within Dallas itself is scarce. However, North Texas offers smaller land tracts (under 100 acres) that are popular among Dallas-Fort Worth residents. Expect to pay between $6,000 and $12,000 per acre for dry cropland and pasture, while hardwood timbers are valued at $3,500 to $5,500 per acre.
San Antonio
San Antonio residents can find rural land opportunities between Texas Hill Country and the Upper Brush Country. This land, often used for recreation, offers a convenient escape from city life. Rangeland values range from $1,500 to $4,000 per acre.
Factors Driving Up Texas Land Values
Several factors have contributed to the increasing value of farmland in Texas:
- Increased Demand: The shift towards remote work during the COVID-19 pandemic fueled migration to rural areas, boosting land demand.
- Decreasing Availability: Land is a finite resource, making existing farmland increasingly valuable.
- Population Growth: Texas’s rapid population growth has intensified competition for available land.
While the market has cooled off slightly since the peak of 2021, land values remain elevated.
Texas Land Prices Compared to Other States
Texas land is moderately priced compared to other agricultural states. Iowa farmland, for example, averages $11,467 per acre. In some cases, individual tracts can fetch even higher prices, such as the $34,800 per acre paid for land in Saline County, Missouri, in 2023.
The type of land also influences the price. According to the USDA, Texas cropland is typically more valuable than pastureland, by approximately $400 per acre.
Finding the Cheapest Land in Texas
The most affordable land in Texas can generally be found in the Panhandle and South Plains region, or in Far West Texas. The Panhandle and South Plains average around $1,890 per acre, while West Texas prices often remain in the triple digits.
Is Investing in Texas Land a Good Idea?
While no investment is guaranteed, land in Texas is a valuable asset. The limited supply and increasing demand suggest that land values will likely continue to appreciate over time. From 2023 to 2024, the average value of cropland and pastureland in Texas increased by over 3% and 6%, respectively, according to the USDA. The annual compound 5-year growth rate of farmland in Texas has been around 10% throughout 2024.
Beyond appreciation, land can also generate income through:
- Leasing: Lease your land for hunting, fishing, camping, and other recreational activities.
- Timber Sales: Harvest and sell timber from wooded areas.
The Future of Texas Farmland Prices: Will They Continue to Rise in 2025?
Given the recent increases in rural land values, the question remains whether this trend will continue. Overall, Texas farmland remains a relatively stable investment option.
Getting Started with Texas Land Investment
Purchasing land in Texas can seem daunting, especially for first-time buyers. Texas Farm Credit offers resources to guide you through the process, including financing options for tracts ranging from 5 to 100 acres. Use our loan calculator to estimate your costs and contact us for further assistance. Buying land in Texas can be a rewarding investment, providing both financial returns and the opportunity to enjoy the unique Texas landscape.
