How to Assess the Texas Land Market in 2026

The Texas land market remains one of the most watched real estate segments in the U.S.—and the latest data shows why. Prices continue to rise even as fewer acres change hands and buyers gravitate toward different tract sizes, creating a market that rewards preparation, local expertise, and clear deal strategy.

Texas Rural Land Market Snapshot (2024–2025)

Recent statewide benchmarks highlight a market that’s still appreciating, but with tighter transaction volume and shifting buyer preferences.

• Statewide rural land prices increased 5.87% year over year to $5,158 per acre in Q3 2025, according to the Texas Real Estate Research Center at Texas A&M University.
• The statewide typical tract size fell 7.3% to 1,818 acres in Q3 2025, per the Texas Real Estate Research Center at Texas A&M University.
• Total acres sold statewide declined 3.56% year over year in Q3 2025, reported by the Texas Real Estate Research Center at Texas A&M University.

Looking at the prior year’s large-tract trend, statewide rural land pricing for larger tracts also moved up: large-tract prices rose 1.88% to $4,776 per acre in Q4 2024, according to the Texas Real Estate Research Center at Texas A&M University.

The Lay of the Texas Land

Texas covers more than 268,000 square miles and includes an extraordinary range of land types—pine forests and small farms in the east, Hill Country limestone and live oaks in the center, and wide-open ranch country, desert basins, and mountain terrain in the west. That diversity keeps demand broad: buyers can pursue ranching, recreation, timber, farming, rural homesites, or land positioned for energy and infrastructure development.

As land use expands beyond traditional agriculture and ranching, pricing has become more sensitive to “micro” property attributes—water, access, improvements, and development potential—while still following broader regional market cycles.

Regional Variations: Where Prices Are Moving

Texas is not a single land market. It’s a network of distinct regional markets with different demand drivers, commodity influences, and buyer profiles. Recent quarterly results show that contrast clearly:

• Region 1 (Panhandle–South Plains): Prices dipped 1.55% year over year to $1,844 per acre in Q3 2025, according to the Texas Real Estate Research Center at Texas A&M University.
• Region 3 (West Texas): Prices climbed 15.79% year over year to $2,787 per acre in Q3 2025, per the Texas Real Estate Research Center at Texas A&M University.
• Region 7 (Austin–Waco–Hill Country): Prices rose 3.4% year over year to $7,704 per acre in Q3 2025, as reported by the Texas Real Estate Research Center at Texas A&M University.
• Region 5 (Gulf Coast–Brazos Bottom): Prices increased 4.46% year over year to $10,001 per acre in Q4 2024, according to the Texas Real Estate Research Center at Texas A&M University.

These differences matter. A pricing strategy that works near Austin may fail in the Panhandle, and “comps” from one region can mislead buyers and sellers in another.

Red-Hot Demand, Tight Supply, and What’s Changed

Texas has stayed resilient because demand comes from multiple directions: lifestyle buyers looking for space and privacy, investors seeking hard assets, ranch and farm operators scaling operations, and developers competing on the edges of fast-growing metros. Meanwhile, inventory remains constrained in many counties, which keeps pricing firm even when transaction volume softens.

Today’s market also reflects a shift in deal structure and buyer behavior. With statewide total acres sold down 3.56% year over year in Q3 2025 and typical tract size down 7.3% to 1,818 acres, many participants are prioritizing fit and flexibility over sheer acreage, based on the Texas Real Estate Research Center at Texas A&M University findings.

Agricultural Land Values: Farm and Cropland Benchmarks

For buyers who focus on production value—not just lifestyle or appreciation—agricultural land indicators provide essential context. Recent reporting shows that agricultural values continue to set new highs:

• Texas average farm real estate value increased 6.1% to $2,970 per acre, according to the Texas Farm Bureau.
• Texas cropland average value rose 5.4% to $2,710 per acre, per the Texas Farm Bureau.

These benchmarks can help buyers sanity-check rural pricing, especially when evaluating income potential, soil quality, water availability, and long-term operating costs.

What Drives Land Value in Texas (Beyond Price Per Acre)

Smart buyers and sellers evaluate land value as a stack of attributes—not a single number. When two tracts sit in the same county, the “right” one can still command a meaningful premium based on fundamentals like:

• Water resources: Reliable groundwater, surface water, and improved water systems support ranching, farming, and rural residential use.
• Mineral rights and energy potential: Oil, gas, aggregates, and renewable energy suitability can reshape a tract’s income profile and buyer pool.
• Terrain and usability: Floodplain exposure, slope, brush cover, and road frontage influence both operational efficiency and lifestyle appeal.
• Improvements: Fencing, barns, wells, utilities, irrigation, and homes can reduce a buyer’s time-to-use and increase perceived value.
• Development optionality: Proximity to growth corridors, zoning realities, and infrastructure can add an “embedded” premium even for currently rural tracts.

Navigating a High-Priced Market: Practical Moves for Buyers and Sellers

Buying Land in Texas

• Expand your search beyond the most competitive counties to find better value per acre.
• Compare land types (ranchland, timberland, cropland, recreational) to match your goals and your holding timeline.
• Validate water, access, easements, and improvement quality during due diligence—these details often explain price gaps.
• Consider seller financing when available to improve affordability and terms.
• Move quickly when a tract fits your criteria; in many regions, the best properties still attract multiple qualified buyers.

Selling Land in Texas

• Price using current, local comps—not last year’s assumptions—because regional performance varies widely.
• Use a credible valuation approach (and consider a certified appraisal for complex tracts or estate planning needs).
• Market with high-quality mapping, property notes, and clear documentation of water, access, improvements, and restrictions.
• Create competition through strong exposure—strategic broker outreach, digital listings, and (when appropriate) professional auctions.
• Plan for taxes early and coordinate with a tax advisor so your net proceeds align with your next step.

Getting Help: Why Local Expertise Matters

In a market where pricing shifts by region, tract size, and property attributes, experienced guidance can protect both value and timeline. Specialized land professionals can help buyers identify inventory faster, evaluate a tract’s true drivers of value, and negotiate terms that match current conditions—especially when the data points in different directions (rising prices, smaller typical tracts, and fewer acres sold).

Outlook: What to Watch Next

Texas land fundamentals remain strong, but the market is more nuanced than the “everything is skyrocketing” narrative. Statewide prices are still rising—up to $5,158 per acre in Q3 2025—while liquidity has tightened, with total acres sold down 3.56% and typical tract size down to 1,818 acres, according to the Texas Real Estate Research Center at Texas A&M University. Expect continued regional divergence as buyers weigh affordability, utility, water, and proximity to growth.

Frequently Asked Questions (FAQs)

Which Texas regions are running hottest right now?

Demand remains especially competitive in growth-adjacent and lifestyle regions. For example, Region 7 (Austin–Waco–Hill Country) reached $7,704 per acre in Q3 2025, according to the Texas Real Estate Research Center at Texas A&M University.

Are all regions increasing in price?

No. Performance varies by region. Region 1 (Panhandle–South Plains) fell to $1,844 per acre in Q3 2025 while Region 3 (West Texas) rose to $2,787 per acre, per the Texas Real Estate Research Center at Texas A&M University.

What do farm and cropland values suggest about the market?

Agricultural benchmarks continue to rise. Texas farm real estate increased to $2,970 per acre and cropland increased to $2,710 per acre, according to the Texas Farm Bureau.

Are buyers purchasing smaller parcels than before?

Statewide, yes. The typical tract size dropped 7.3% to 1,818 acres in Q3 2025, according to the Texas Real Estate Research Center at Texas A&M University.

Is it harder to buy land now than a year ago?

In many areas, competition remains intense because prices continue to move up and transaction volume has softened. Even with acres sold down 3.56% year over year in Q3 2025, statewide prices still increased to $5,158 per acre, based on the Texas Real Estate Research Center at Texas A&M University.