When you think of Texas, you think of wide-open spaces and rolling hills. Texas is regarded as being one of the most affordable states for land and new home development.
Texas’ diversified scenery provides something for everyone, whether you favor rural rolling hills, sea-level plains, or land in Coupland.
Other considerations must be recognized in addition to the terrain, though. A desirable school district, a local job with promotion opportunities, and nearby activities, facilities, and resources are just a few examples. Other factors to consider for prospective Houston area land buyers include affordability and if a property’s attributes make it a viable long-term investment, especially when building a new custom home.
Understanding Land Prices in Texas
In Texas, rural property sales and small land transactions are documented separately. In Texas, small land deals are defined as parcels of less than 200 acres. Except in Far West Texas, where land purchases of up to 8,000 acres are included in the term. The reports are separated into sections based on use and purchasing habits. Rural land acquisition trends are driven by residential, recreational, and small agricultural uses, while small land trends are driven by farming and industry.
How Much Does Land Cost in Houston?
Although Houston is the county seat of Harris County, its suburbs stretch into Fort Bend and Montgomery counties. Large tracts of suitable land in the Houston, Austin, and Dallas-Fort Worth areas have become less available in recent years. Land prices will continue to grow as more individuals pick the suburbs and rural areas over the metropolis.
In the first quarter of 2021, land in Harris County cost more than $21,000 per acre. In 2020, the Gulf Coast region, which includes Harris County, averaged $11,675 per acre.
In determining the property value, location is more significant than kind or aesthetic appeal. Otherwise, agriculture is scarce in Houston and its surrounding areas.
Houston land price averages are not included in rural land data. Since 2020, the rush to acquire rural property hasn’t affected Houston’s land inventory. According to Grounding Watch, the county of Harrisranks 15th out of nearly three-hundred counties in terms of available property, including hunting land.
How Much Does an Acre Cost in Texas?
According to industry specialists, rural Texas property buyers will shift the market trend landscape in 2022. Also, the real estate business during 2022 in Texas and abroad will see dramatic upheavals.
The average price per acre for rural land in Texas in 2021 was $3,725, up 25% from $3,064.The 2022 average was 3% more than the 2019 average of $2,972. In recent years, the cost of constructing a new home has climbed in pace with national real estate markets.
In Texas, the price per acre varies according to the size of the total plot, demand, geography, and availability. However, as more city dwellers purchase rural land, demand in Houston has increased while supply has dropped, causing the price per acre to climb.
The number of minor land purchases grew by 34% in 2021. The increase in volume was most noticeable in Far West Texas and Austin-Waco-Hill Country. The average price per small acre in 2021 will be $6,471.
Beginning in 2020, the average size of small property transactions in Texas continued to drop, decreasing 3% to 32 acres in 2021 and again to 30 acres in 20222. According to industry analysts, these trends are being driven by urban residents seeking open space but not for agricultural or commercial interests. Although the annual report has yet to be issued, the average price per acre in Texas continues to rise through 2021.
Where Can You Find the Cheapest Land in Texas?
West Texas, the Panhandle, and the South Plains have the least expensive land, especially for farms and ranches. Although Far West Texas remains the cheapest because manufacturing and oil companies acquire large expanses of land, rather than individuals for agriculture, suburban development, or personal use.