U.S. Land Sales Rose in 2023 But at Slower Pace
ORLANDO, Fla. –Realtors® reported a growth of 1.2% in land sales in the U.S., according to the National Association of Realtors® (NAR) 2023 Land Market Survey. While this marks a slower pace compared to past performance, it highlights the market’s resilience and ongoing potential for expansion amidst challenging conditions, said NAR Chief Economist Dr. Lawrence Yun.
While sector performance has been volatile in commercial real estate, “land demand has held on very well,” Yun noted.
The survey found that residential, industrial and timber land posted the strongest price growth, by type of land, which is in line with pre-COVID performance.
The 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, according to NAR’s estimate.
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: Land sales grew 1.2%. While this marks a slower pace compared to past performance, the data point highlights the market’s resilience.
Land value: As of 2023’s third quarter, the underlying value of the land of household-owned real estate totaled $18.6 trillion, up from $17.2 trillion in 2022 Q3. According to NAR’s estimate, the 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.
Length of time for purchase: Land sales generally concluded within 60 days, and 25% of these transactions are wrapped up in less than 30 days.
Land price growth: Growth in land price per acre adjusted to a rate of 1.9% on average in 2023. By type of land, residential, industrial and timber land posted the strongest price growth of 1.9% to 2.9%. Timber and ranch land prices also have increased since the end of the pandemic.
Hottest markets: Regions 1, 9 and 10 had the largest increases in land sales, in the range of 2.8% to 3.7%. Region 1 covers New York, Massachusetts and Maine; Region 9 includes Kentucky, Tennessee, Alabama, Mississippi, Louisiana and Arkansas; and Region 10 covers Virginia, North Carolina, South Carolina, Georgia and Florida.
Most expensive residential land: Region 1 (New York, Massachusetts and Maine) had the highest prices for residential land, commanding up to $200,000 per acre.
Florida Realtors® serves as the voice for real estate in Florida. It provides programs, services, continuing education, research, and legislative representation to about 238,000 members in 51 boards/associations. Florida Realtors® Newsroom website is available at floridarealtors.org/newsroom