Land Investing Q3 Report
In Q3 of 2024, the land investing market in the United States has experienced notable trends and changes, shaped by interest rate shifts, demand for rural properties, and regional development dynamics.
Key Market Trends:
Rising Land Prices: One of the most significant trends in 2024 has been an upward trajectory in land prices. This is largely driven by expected decreases in interest rates, which make borrowing cheaper. As financing becomes more accessible, demand for land increases, pushing prices higher. This has been especially visible in states like Texas, North Carolina, and Tennessee, where the expanding urban sprawl has driven demand for land outside major metropolitan areas (National Association of REALTORS®) (Land Investing Online).
Shift to Rural and Suburban Land: There's been growing interest in rural and suburban land, a trend that was catalyzed by the COVID-19 pandemic. With more people seeking properties outside of congested urban areas, land in regions surrounding cities like Charlotte, Nashville, and Austin is in high demand. Developers and individuals alike are looking to invest in land further from city centers, with some developments now occurring up to an hour or two away from urban hubs (Land Investing Online).
Investment Demand: Land is increasingly viewed as a stable and desirable investment. Many investors are moving into the land market as a way to diversify portfolios, especially as other real estate sectors (like office spaces) have faced more challenges. This has led to an influx of land flipping and wholesaling, as more people see potential for profit in this asset class (Land Investing Online).
Sales Data and Regional Insights:
According to the National Association of Realtors (NAR), land sales rose modestly by about 1.2% in 2023, showing resilience even in a slower overall real estate market. Texas, California, and Georgia continue to lead in land transaction volumes. However, growth in land sales has been more dynamic in states like Florida and the Carolinas, where development continues to push outward from major cities (National Association of REALTORS®).
The South and Southeast regions have emerged as hotbeds for land investment due to lower cost structures and favorable development prospects. For example, areas around Chattanooga, Tennessee, and outside Mobile, Alabama, have seen particularly strong interest as developers look for affordable alternatives to more expensive urban plots (National Land) (Land Investing Online).
As Q4 approaches, experts anticipate continued strong demand for land investments, particularly in the southern and southeastern United States, driven by both individual buyers and institutional investors looking to capitalize on long-term growth trends.
