MARKET
Texas Land Markets
REPORT BY CHARLES E . GILLIL AND, PH.D. Research Economist, Texas Real Estate Research Center at Texas A&M University
THIRD QUARTER 2023
Change in Texas Rural Land Prices: 2013–2023 9,500
T
he four-quarter preliminary total number of sales dropped to 3,444 continuing to slide for the sixth straight quarter. This represents a more than 50 percent fall from the third quarter 2022. Final reports may likely soften that reported decline; however, the market continues to cool from the frenzied hot pace seen in 2021 and 2022. According to market participants, buyers focused on good quality properties while lesser quality land remained unsold. That flight to quality land ensured higher overall prices, up 7.03 percent to $4,720 per acre. After adjusting for the impact of inflation, prices increased only 3.13 percent, the smallest percentage increase since the 2020 pandemic year. Preliminary reported total acreage dropped 69 percent to 255,154 acres. Quarterly volume has declined for the sixth straight quarter. The preliminary total dollar volume fell to $1.2 billion, a 67 percent drop. Final reports will increase the number of sales and add to the total dollar volume. Nevertheless these reveal a market returning to more normal levels of activity with moderating price pressures. If more of the lesser quality land had sold, overall price levels may have actually declined.
18
| LEGENDARY LIVING
6500
3500
0 2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
5,000
Texas Rural Land Prices: 2013–2023 4,000 Nominal Real or Deflated
3,000
2,000
1,000
0 2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
