Land sales are often overshadowed by residential and commercial real estate, but they're quietly becoming one of the market's most resilient segments.
The latest survey from the National Association of REALTORS highlights fascinating trends in land transactions, values, and market performance.
Here's why land might be the smartest investment you've been overlooking.
Start Your Land Investment Today.
Land Sales Are Growing, Even Amid Market Challenges
Despite economic uncertainty, land sales grew by 1.2%.
While this represents a slower pace compared to previous years, it underscores the sector's resilience and untapped potential.
Whether for residential, commercial, or agricultural purposes, land remains a foundational part of real estate transactions.
Key Insight: Land's versatility as an asset ensures consistent demand across various market conditions.
Land Values Are Climbing Rapidly
The value of land owned by households has reached $18.6 trillion, up from $17.2 trillion the previous year.
This marks an impressive gain, with land now accounting for 41% of household real estate assets.
The steady increase in land value highlights its role as a secure and appreciating investment.
Key Insight: With land contributing a significant portion of household wealth, it's a compelling option for both new and seasoned investors.
How Quickly Does Land Sell?
One of the most striking trends in the land market is its speed. Most transactions are completed within 60 days, with 25% closing in under 30 days.
In high-demand regions, such as areas 1, 2, 3, 7, 9, and 10, the pace is even faster, with most sales finalized in less than 45 days.
Key Insight: The quick turnaround for land sales makes it an attractive option for investors seeking immediate returns.
Why is Land So Desirable?
Land appeals to a wide range of buyers due to its versatility.
It can be developed for residential or commercial use, farmed for agricultural purposes, or held as a long-term investment.
With no structures to maintain, land offers fewer liabilities and lower carrying costs compared to other property types.
Key Insight: As a tangible asset, land provides stability and growth potential, especially during volatile economic periods.
What Regions Are Leading the Land Market?
Regional performance varies, but some areas stand out for their exceptional activity.
High-demand regions consistently see faster transaction times and higher appreciation rates, reflecting localized opportunities for buyers and investors.
Key Insight: Understanding regional dynamics is crucial for identifying the best investment opportunities in the land market.
How to Get Started in Land Investment
If you're considering land as an investment, here are some tips to ensure success:
- Research zoning regulations: Understand what you can and cannot do with the land you purchase.
- Evaluate location: Proximity to infrastructure, amenities, and natural resources can significantly impact value.
- Work with a REALTOR�: Experienced agents can provide valuable insights into the market and help you navigate the buying process.
Key Insight: Partnering with experts ensures you maximize the potential of your land investment.
Conclusion
Land is a powerful asset that combines stability, growth potential, and versatility. Whether you're looking to develop, farm, or invest, the land market offers unique opportunities in today's real estate landscape. Ready to explore your options? Get Pre-Approved Today.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
