Land Market Report

By Jared Groce

Many folks, including myself, had predicted last year that the increase in land pricing would likely continue in 2022 barring a catastrophic event. Well, that event is here and is called inflation.
What will that do to land prices for us? Of course no one really knows, but here are some things to consider:

According to the Texas Real Estate Center at Texas A&M, we saw a 19.52 percent decrease in land prices in 1975 when we had the oil crises and inflation. We saw a 13.59 percent decrease in 1989 during the recession led by Iraq invading Kuwait. There seems to be a common thread of fuel prices, inflation, and land prices. However, what we had in 1975 and 1989 was the fact that so much of Texas land had a highest and best use of agriculture, but today, practically none of our North Texas land has a highest and best use of agriculture simply because the price is too high.

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