Report: Texas rural land buying frenzy wanes

Sales of rural land fell 26.5 percent across Texas over the last year, falling from the “frenzied” activity that drove prices up, according to a new report by the Texas Real Estate Research Center (TRERC) at Texas A&M University.

“Clearly activity appears to be slowing,” said Dr. Charles Gilliland, TRERC’s Research Economist. “Demand for land, as reported by rural brokers, remains strong but has noticeably cooled from last year’s frenzied contest.” Prices increased by more than 21 percent statewide, except in Far West Texas, where they fell substantially, the report showed. The total number of acres that changed hands declined in several regions, and total sales dropped everywhere but Far West Texas, it showed.

Dr. Gilliland said some markets were seeing below- asking-price offers, something not seen in two years. But fewer listings in the second quarter of 2022 drove up prices by 24.5 percent to $4,286 per acre statewide. Total second-quarter sales volume hit $3.6 billion, up 28 percent, and a total of 850,469 acres changed hands, Dr. Gilliland said. The typical transaction expanded 9.4 percent to 1,293 acres, he said.