Texas Rural Land Markets | Third Quarter 2025

Texas Rural Land Market Developments
Third Quarter 2025

This report was completed Nov. 13, 2025.

About this Report

This report contains an analysis of Texas land markets. The reported sales consist of a sample of verified transactions through third quarter 2025. The report does not include all Texas land sales. The statistics reflect a mixture of land uses and conditions and represent the market for large rural land tracts (the minimum land size is region-specific due to the varied tract sizes sold in each region). Statistics in the report reflect general trends without regard to land use or type. The analysis reports quarterly, annualized changes using moving averages as they generally minimize noisy, short-term fluctuations and provide a long-term indication of market trends. Reported values are based on median prices because they are the most stable representation of market conditions.

Users should regard the statistics presented in this report as indicators of past market conditions, providing a general guide to land market trends. The reported data does not represent prices or values of any particular farm or ranch. Users should not consider the reported statistics as a substitute for an appraisal or market study of current local sales regarding the value of any farm or ranch.

For historical data on Texas’ Land Market Areas, go to https://trerc.tamu.edu/rural-land/. This page also includes a link to Texas Rural Land Value Trends, a regional analysis of Texas markets by the Texas Chapter of the American Society of Farm Managers and Rural Appraisers.

Texas Statewide Overview

The third quarter saw a continuation of the rising year-over-year (YoY) price change that began in the first quarter. Price is up 5.87 percent YoY to $5,158 per acre. The five-year growth rate is now 11.24 percent. The number of sales declined slightly YoY, down 1.99 percent. Only Regions 1 and 4 saw YoY sales declines.

Total acres sold declined 3.56 percent, but total dollar volume rose 2.1 percent YoY on higher prices. Overall, market activity is still well below 2019 levels. However, there are noteworthy differences in trends by region, which are covered below.

The typical size contracted, down 7.3 percent to 1,818 acres. This is heavily influenced by a sizable reduction in typical tract size in Far West Texas and a reduction in the largest segment of sales by size in West Texas. Additionally, tract size was down in all but two regions.

Statewide total dollar volume rose 2.1 percent YoY. However, not all regions were positive YoY. The biggest regional decline this time was in the West Texas region, where price per acre was up tremendously but total acres were down more than price was up for the reason stated in the previous paragraph.

When comparing year-to-date sales from 3Q2024 to 3Q2025 across the 33 Land Market Areas (LMAs), the first thing that stands out is that overall, so far, 2025 is very similar to 2024. Total sales, typical size, and typical prices are each within 2 percent of the results from 2024. The sales volume was down in 15 LMAs but up 1 percent overall. Typical size was down 2 percent overall, and the change was statistically significant in just two LMAs: LMA 3, where it was up 24 percent, and LMA 8, where it was down 81 percent. Median price was up 2 percent overall and was up in 19 of the 32 LMAs with sales (there were no reported sales in El Paso LMA). The price change was statistically significant in five LMAs—four positively and one negatively.

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Texas Regional Market Developments

Region 1: Panhandle-South Plains

Price in this market dropped 1.55 percent YoY to $1,844 per acre, remaining in the $1,800s since 2Q2024. The typical tract size has been consistent at about the same level (upper 300s) for more than a year. It was 387 acres, down just 2.46 percent. The total number of acres sold was basically flat YoY, down 0.6 percent coming in at 53,320. This and the slight drop in price pulled total dollar volume down 2.14 percent YoY to $98.32 million. The annualized number of sales dropped 10.45 percent to 317 transactions, continuing the decline from the peak in 1Q2022, and now at the lowest level since 2017. Overall, this market has been trading sideways recently with declining sales, as high prices are meeting resistance.

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Region 2: Far West Texas

Demand for land here remains weak. The annual sales volume was 24, up 109.93 percent from a very low level a year ago. Price increased 15.91 percent YoY to $714 per acre while size decreased 8.01 percent to 13,494 acres. Total dollar volume increased by 24.91 percent YoY to $32.82 million, and total acres sold climbed 7.76 percent YoY to 45,960 acres. Lack of a sufficient volume of transactions makes it difficult to accurately estimate trends in this region.

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Region 3: West Texas

This market presented some unusual dynamics recently. Price jumped 15.79 percent YoY to a new high of $2,787 per acre. Annualized sales volume moved up 7.13 percent to 526 sales. However, total acres sold fell 18.12 percent to 72,095, and total dollar volume slipped 5.2 percent to $200.93 million as the typical tract size contracted 8.61 percent to 382 acres. The massive drop in total acres sold was primarily due to substantially few sales of tracts over 500 acres in Q3. Demand for land has recently spiked in areas with strong potential for data centers and AI projects. The Abilene area (Taylor and Jones Counties) is one such example in this region.

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Region 4: Northeast Texas

Reported sales volume continues to decline YoY in this region, down 18.33 percent to 802. This remains the lowest level since 2013. Despite this, price was up 4.38 percent YoY to $9,313 per acre, and the five-year CAGR remains high at 13.25 percent. The size of the typical transaction increased 1.71 percent YoY to 118, roughly the same as the last several quarters. Total dollar volume slipped 1.99 percent to $257.29 million and total acreage fell 6.11 percent to 27,627 acres.

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Region 5: Gulf Coast-Brazos Bottom

After taking a brief respite in the first half of last year, price in this region is climbing to new highs again. It was up 13.63 percent YoY to $11,423 per acre. The nominal five-year compound annual growth rate (CAGR) sits at 10.81 percent and is 6.78 percent in real terms. Sales were up 1.9 percent YoY and have been steady for two years. Typical tract size slipped 11.91 percent to 131 acres; the average over the last 10 years is about 143 acres. Total dollar volume increased 8.36 percent to $215.34 million, while total acres sold was down 4.64 percent to 18,852 acres owing to the reduction in typical tract size.

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Region 6: South Texas

Price this quarter was slightly lower than a year ago, down 0.6 percent at $5,970 per acre, which is 5.6 percent below the peak reached in 1Q2024. The real or deflated price declined 2.79 percent YoY. The five-year CAGR slipped to 8.81 percent. Typical size expanded 13.56 percent YoY to 295 acres, which might explain some of the decline in median price. Sales volume has improved over the last four quarters compared to the year before. The most recent four-quarter total number of sales increased 9.21 percent YoY to 344, the highest number in two years. Total dollar volume increased 11.06 percent to $162.29 million, as total acres sold gained 11.73 percent to 27,184 acres.

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Region 7: Austin-Waco-Hill Country

Price grew YoY by 3.4 percent to $7,704 per acre, a new high for this region. This brings the real or deflated price per acre back into positive territory, up 1.17 percent YoY. The five-year CAGR improved to 12.68 percent. The typical tract size slipped 3.17 percent to 201, which is roughly in line with the two-year average of 205 acres. The number of sales rose 5.72 percent YoY to 1,054, the highest in two and a half years. Total dollar volume was up 7.38 percent to $394.55 million. Total acres sold rose 3.85 percent YoY to 51,213 acres. Overall, these outcomes show welcome improvement to the rural land market in this region.

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Source: Texas Real Estate Research Center at Texas A&M University

Summary and Outlook

Though statewide market activity is at a 12-year low, it has been stable and improving this year, and prices are exhibiting remarkable strength; the YoY rate of change has improved three consecutive quarters. While price growth nearly stalled out last year, it did not decline YoY and appears to be reaccelerating, albeit on low sales volumes. The total four-quarter sales volume is greater (by a small margin) than it was a year ago. TRERC’s baseline forecast of statewide nominal price per acre now predicts prices will rise about 2 percent over the next four quarters. Meanwhile, total acres sold are expected to decline by less than 1 percent over the next few quarters, then to steadily rise beginning the second half of next year. As always, such forecasts have a short shelf life. TRERC will continue to closely monitor market conditions.

Though prime rates have come down a bit, interest rates remain higher than they were most of the 15 years prior to 2023. The steep price appreciation of the last five years and interest rates are clearly the most prominent reasons for lower levels of market activity. There are still concerns about trade (especially in agricultural products) and interest rates in the near term. Potential market participants are probably holding out for lower interest rates but may still be dismayed about asking prices. Nonetheless, TRERC is increasingly confident that a significant retracement in statewide price, like what occurred in the mid-to-late ‘80s and from 2009 to 2011, is unlikely. Variations by size segment and region will continue; some regions appear poised for stronger returns, and others are exhibiting market weaknesses. For more data by Region, including data on smaller tracts, visit the Center’s Rural Land Data page to filter by geography and tract size datasets and download data tables.