How to Assess Tennessee’s Land Market in 2026

Tennessee’s land market has stayed on an upward track into 2025, and the latest USDA data shows why buyers and sellers are paying close attention. According to the USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary, Tennessee farm real estate value increased by 7.7% in 2025, while Tennessee cropland value increased by 7.8% in 2025. Those gains matter for anyone evaluating farms, timber tracts, recreational ground, or future development sites—because they signal continued demand even as market conditions vary sharply by region and parcel quality.

National benchmarks help put Tennessee’s performance in context. The USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary reports that U.S. farm real estate value averaged $4,350 per acre in 2025, up 4.3% ($180 per acre) from 2024. U.S. cropland value averaged $5,830 per acre in 2025, up 4.7% from 2024, and U.S. pasture value averaged $1,920 per acre in 2025, up 4.9% ($90 per acre) from 2024 (all from the same USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary).

A State of Diverse Land and People

Tennessee’s land market doesn’t move as one. The state’s geography, climate, and local economies create distinct “micro-markets,” so a strong statewide trend can still hide big differences between counties.

Tennessee spans three Grand Divisions—West, Middle, and East—each with its own land uses and buyer demand:

• Middle Tennessee blends productive farmland with fast-growing development pressure around Nashville and its surrounding growth corridors. As metros expand, buyers often compete for acreage with road frontage, utility access, and buildable topography.
• West Tennessee features flatter ground and fertile soils that support row-crop agriculture. Land values here often track farm income potential, drainage, and proximity to grain markets and transportation.
• East Tennessee includes Appalachian ridges, valleys, and tourism-driven demand near outdoor destinations. The broader region is also seeing value growth: according to the USDA National Agricultural Statistics Service (NASS) via Van Trump Report, Appalachian region farm real estate values increased by 5.1% in 2025.

Culture matters, too. Tennessee mixes deep agricultural roots with an influx of new residents drawn by jobs, lifestyle, and recreation. That blend affects what sells (and at what price): row-crop ground, pasture, timberland, hunting property, lake lots, and “mini-farm” homesteads often behave like entirely different markets even within the same county.

What the 2025 Data Says About Tennessee’s Momentum

By 2025, Tennessee didn’t just rise—it ranked near the top nationally. According to USDA National Agricultural Statistics Service (NASS) via DTN Progressive Farmer, Tennessee ranked second highest in farm real estate value increase at 7.7% in 2025, behind Michigan’s 7.8%. The same reporting notes Tennessee ranked third highest in cropland value increase at 7.8% in 2025, behind Utah’s 9.7% and Michigan’s 8.2% (USDA National Agricultural Statistics Service (NASS) via DTN Progressive Farmer).

It’s also worth noting the broader national direction: every state reported increases in farmland value in 2025, with Tennessee at 7.7%, according to USDA National Agricultural Statistics Service (NASS) via DTN Progressive Farmer. That “rising tide” matters because it supports pricing across many land categories, even while local factors still determine whether a specific parcel sells quickly or sits.

Key Factors That Drive Tennessee Land Valuations

To estimate fair market value for a Tennessee land parcel, focus on the drivers that consistently move price per acre—then validate your assumptions with local comparable sales.

1) Location and Growth Patterns

Location still does the heavy lifting in land valuation. Parcels within easy reach of Nashville, Knoxville, Chattanooga, and Memphis typically command higher prices because buyers pay for convenience—commutes, services, utilities, and resale liquidity.

Transportation access amplifies this effect. Land near interstates and major corridors—especially I-40, I-65, I-24, and I-75—often sells faster because it reduces development costs and increases usability for farming, storage, or future commercial potential.

2) Recreational and Lifestyle Demand

Outdoor amenities add measurable value in Tennessee. Proximity to lakes, rivers, trail systems, and mountain views increases demand for cabins, short-term rentals, hunting tracts, and retirement properties—especially in tourism-influenced areas of East Tennessee.

3) Improvements and “Ready-to-Use” Infrastructure

Raw land usually trades at a discount compared to improved parcels. Road frontage, driveways, fencing, barns, utilities, water sources, and cleared acreage can raise value because they reduce the buyer’s upfront time and cost. Even smaller upgrades—brush clearing, gates, signage, or a cleaned-up access lane—can improve first impressions and shorten time on market.

4) Access, Legal Entry, and Buildability

Easy access sells. Landlocked tracts, unclear easements, steep terrain, and weak road systems reduce both buyer demand and lender appetite. Before you buy, confirm deeded access through a title review and make sure the property physically supports its intended use (driveway locations, building sites, and drainage).

5) Soil Quality, Water, Timber, and Income Potential

Land that produces income tends to hold value better. Row-crop capability, pasture carrying capacity, merchantable timber, and water resources all influence price because they affect productivity and long-term return. In West Tennessee, soil and drainage can dominate pricing; in timber-heavy areas, stocking, access, and harvest potential may drive the numbers.

6) Neighboring Land Uses and Future Risk

Adjacent land uses can either protect value or erode it. Neighboring farms, protected areas, and large undeveloped tracts often support privacy and long-term appreciation. On the other hand, nearby industrial activity, nuisance uses, or unattractive development can reduce demand quickly. Always evaluate what surrounds the property today—and what could be built tomorrow under current zoning.

7) Local Economy and Buyer Pool

Jobs create buyers. Counties with expanding employers and population inflows generally see stronger land demand and higher pricing resilience. In contrast, areas with out-migration or limited economic activity may require more aggressive pricing and longer marketing timelines—especially for lower-quality parcels.

8) Comparable Sales (Comps) and Recent Market Proof

Comps remain the clearest reality check. Look at similar acreage, topography, road frontage, improvements, and land use—ideally sold within the past 6–12 months. Use comps to establish a defensible price-per-acre range, then adjust for property-specific strengths like utilities, water features, and usable building sites.

Tennessee Land Market Conditions: Rising Prices, Local Variations

Statewide appreciation in 2025 doesn’t mean every parcel is “hot.” Tennessee’s strongest competition typically clusters around:

• expanding metro areas and commuter counties,
• recreation and tourism corridors, and
• productive agricultural zones with reliable soils and access.

Meanwhile, isolated rural properties with limited access or few improvements often require more time, sharper pricing, and clearer marketing to find the right buyer. The market rewards parcels that are easy to understand, easy to access, and ready to use.

Smart Tactics for Buying Land in Tennessee

• Use a rural land specialist. A land-focused agent can spot red flags (access, easements, topography) and help you interpret comps correctly.
• Line up funding early. Pre-approval or proof of funds strengthens your offer and helps you move quickly when good tracts hit the market.
• Walk the property. Verify boundaries, terrain, water features, and the real condition of roads and trails.
• Confirm access and title details. Ensure deeded access, review easements, and check for liens or back taxes.
• Budget for improvements. Price out driveways, utilities, fencing, clearing, and drainage so you understand total cost—not just purchase price.
• Order the right due diligence. Surveys, inspections (as appropriate), and appraisals reduce unpleasant surprises.
• Base offers on local comps. Avoid paying a “statewide trend premium” that the local market won’t support.

Tactics to Successfully Sell Land in Tennessee

• Position the property for its best buyer. Market farm ground to producers, recreational land to hunters/outdoor buyers, and buildable tracts to homestead and development buyers.
• Make high-ROI improvements. Clear key viewing areas, add signage, improve access, and document utilities or perc information when available.
• Price with proof. Anchor your list price to comps and current conditions, not just what neighboring counties are doing.
• Use strong media. Professional photos, maps, boundary overlays, and clear “use cases” reduce buyer friction.
• Consider flexible terms. Owner financing can widen the buyer pool for vacant land, depending on your goals and risk tolerance.
• Set timeline expectations. Prime parcels can move quickly; niche or remote tracts often take longer and require patient follow-up.

Conclusion: Find Your Place in Tennessee

Tennessee continues to stand out in the national land conversation. In 2025, the state posted a 7.7% increase in farm real estate value and a 7.8% increase in cropland value (both reported by the USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary), ranking near the top of all states for gains according to USDA National Agricultural Statistics Service (NASS) via DTN Progressive Farmer. At the same time, regional context still matters—especially in areas tied to the Appalachian landscape, where farm real estate values increased 5.1% in 2025 according to the USDA National Agricultural Statistics Service (NASS) via Van Trump Report.

If you want to buy well or sell confidently, focus less on statewide averages and more on local comps, access, usability, and the buyer demand profile in the immediate area. Do the homework, move decisively when the numbers work, and treat each parcel as its own market. Tennessee still offers opportunity—but it rewards precision.

Frequently Asked Questions (FAQs)

What’s driving Tennessee land values higher right now?

Rising demand, strong regional buyer interest, and continued national appreciation all contribute. In 2025, Tennessee farm real estate value increased by 7.7% and cropland value increased by 7.8%, according to the USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary.

How does Tennessee compare to the national land market?

Nationally, U.S. farm real estate averaged $4,350 per acre in 2025 (up 4.3%, or $180 per acre), U.S. cropland averaged $5,830 per acre (up 4.7%), and U.S. pasture averaged $1,920 per acre (up 4.9%, or $90 per acre), according to the USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary.

Was farmland up everywhere in 2025?

Yes. Every state reported increases in farmland value in 2025, with Tennessee at 7.7%, according to USDA National Agricultural Statistics Service (NASS) via DTN Progressive Farmer.

How strong were Tennessee’s increases compared with other states?

Tennessee ranked second highest in farm real estate value increase at 7.7% in 2025 (behind Michigan’s 7.8%), and ranked third highest in cropland value increase at 7.8% (behind Utah’s 9.7% and Michigan’s 8.2%), according to USDA National Agricultural Statistics Service (NASS) via DTN Progressive Farmer.

Do regional trends matter inside Tennessee?

Yes—topography, tourism, local economies, and land use create major price differences between counties. For example, the broader Appalachian region saw farm real estate values increase by 5.1% in 2025, according to the USDA National Agricultural Statistics Service (NASS) via Van Trump Report, which is useful context for evaluating East Tennessee and similar terrain-driven markets.