The survey found that residential, industrial, and timber land posted the strongest price growth by type of land, aligning with pre-COVID performance. According to the National Association of Realtors (NAR), land value accounts for 41% of household real estate assets based on Federal Reserve Board data on household real estate and the cost of structures.
The survey analyzed 2023 transaction data in 10 U.S. regions reported by members of the Realtors® Land Institute.
Highlights from the survey include:
Land sales grew by 1.2%. While this marks a slower pace compared to past performance, it underscores the market’s resilience.
As of 2023’s third quarter, the underlying value of household-owned real estate land totaled $18.6 trillion, up from $17.2 trillion in Q3 2022. According to NAR's estimate, land value accounts for 41% of household real estate assets based on Federal Reserve Board data on household real estate and structure costs.
Land sales generally concluded within 60 days, with 25% wrapping up in less than 30 days.
Growth in land price per acre adjusted to an average rate of 1.9% in 2023. Residential, industrial, and timber land posted the strongest price growth at rates ranging from 1.9% to 2.9%. Timber and ranch land prices have also increased since the end of the pandemic.
Regions 1, 9, and 10 experienced the largest increases in land sales, ranging from 2.8% to 3.7%. Region 1 covers New York, Massachusetts, and Maine; Region 9 includes Kentucky, Tennessee, Alabama, Mississippi, Louisiana, and Arkansas; Region 10 encompasses Virginia, North Carolina, South Carolina, Georgia, and Florida.
Region 1 had the highest prices for residential land, commanding up to $200,000 per acre.