HOUSTON—Texas small land sales volume experienced strong gains in 2016, while the average price per acre declined slightly statewide, according to the small land sales report released by the Texas Association of Realtors. The definition of a “small” land sale varies from region to region but generally is considered to be a land purchase of 200 acres or less. The report analyzes small land sales data and trends across seven regions of Texas utilizing survey data aggregated by the real estate center at Texas A&M University.

“As our state's population continues to grow and the footprints of Texas cities expand, the demand for rural land will only increase,” said Vicki Fullerton, chairman of the Texas Association of Realtors. “At the same time, after consecutive years of rapid growth in real estate land prices, prices in many regions have leveled off.”

Texas small land sales volume jumped 14.2% annually to 6,992 small land tracts sold in 2016. During the same time frame, the average price per acre dipped 0.3% year-over-year to $5,647 an acre. The exception is far West Texas, where 500 to 8,000 acres qualifies as a small land sale.

“The increased demand for rural land in Texas is indicative of the state's diverse economy and high quality of life that's so appealing to both business and family relocation from across the globe,” Fullerton tells GlobeSt.com.

Strong small land sales growth was evident throughout most regions, with small land purchases in far West Texas, Northeast Texas and the Austin-Waco-Hill Country experiencing annual gains of more than 20%. Conversely, small land sales in West Texas declined 20.6% from 2015.

“While the Texas land market remains strong, multiple factors are impacting land sales activity throughout the state,” Charles Gilliland, economist with the real estate center at Texas A&M University, commented. “Rising prices of irrigated farmland and a sluggish agricultural sector are driving up land costs in the Panhandle, and residual effects of the oil and gas downturn have slowed small land sales activity in West and South Texas. Statewide, shortages in prime land are stifling land price growth as developers consider less desirable land tracts.”

As demand for small land tracts continued to rise, the average tract size of Texas land purchased declined. In 2016, the average tract size for Texas small land purchases declined by 3 acres from 2015 to 36 acres. Far West Texas and South Texas were the only regions that experienced declines in average price per acre, falling 64.9% and 3.9%, respectively.

“The wise utilization of Texas land is the bedrock of our state's economy and quality of life,” Fullerton says. “As Texas continues to experience rapid population growth, it's important that leaders across our state and within our communities take care to ensure that ongoing land segmentation and development preserves the unique culture of our state's regions and does not harm essential industries.”

Instant Insights /

After Years of Land Price Growth, Many Regions Level Off

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