Vacant Land Sales Research Report 2022
Table of Contents
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The past few year has been marked by a worldwide pandemic, significant economic transformations, and an extraordinary shift in the real estate market. These profound changes have altered the landscape and hold the potential to influence sellers’ preferences in the long run. Nevertheless, numerous behaviors and attitudes persist unchanged.
Vacant land sales have been on the rise in recent years, with sales increasing by 6% in 2022 alone. This strong demand is being driven by a number of factors, including low interest rates, a growing population, and increasing urbanization.
Key Findings
- Vacant land sales rose 6% in 2022, surpassing the sales increase of other commercial real estate types.
- Residential land sales accounted for a higher share of residential real estate sales, at 4%.
- Residential land for the buyer to build on accounted for a higher share of residential sales, at 4% in 2022.
- Land prices rose at the second-strongest pace of 6% compared to other commercial real estate types.
- Vacant sales prices rose at a slightly higher pace than prices of industrial properties (6%) and multifamily apartments (5% for Class A and 6% for Class B/C).
Trends
- The land market is expected to remain strong in the coming years, driven by interest rates and a growing population.
- Residential land sales are expected to continue to grow, as more and more people choose to build their own homes.
- Land prices are expected to continue to rise, especially in desirable locations.
Region Variations
- Vacant land sales are strongest in the South and West regions of the United States.
- The median vacant land sale price is highest in the West region, followed by the South, Midwest, and Northeast regions.
- The median vacant land sale price in the West region is more than twice the median vacant land sale price in the Northeast region.
Charts and Statistics
The following charts and statistics provide additional insights into the vacant land market:
Chart 1: Vacant Land Sales by Region
As shown in Chart 1, vacant land sales are strongest in the South and West regions of the United States. These regions are experiencing rapid population growth and economic development, which is driving demand for vacant land.
Chart 2: Median Vacant Land Sale Price by Region
As shown in Chart 2, the median vacant land sale price is highest in the West region, followed by the South, Midwest, and Northeast regions. This is likely due to the high demand for vacant land in the West region, as well as the fact that the West region has a lot of land that is suitable for development.
Chart 3: Vacant Land Sales by Type
As shown in Chart 3, residential land sales account for the majority of vacant land sales. This is likely due to the fact that many people are choosing to build their own homes, and they need to purchase vacant land in order to do so.
Chart 4: Vacant Land Prices Over Time
As shown in Chart 4, vacant land prices have been rising steadily in recent years. This is likely due to the increasing demand for vacant land, as well as the fact that the supply of vacant land is limited.
Table 1: Vacant Land Sales Data from land.com for 2022
Conclusion
The vacant land market remained strong in 2022, with sales increasing by 6% compared to 2021. The median vacant land sale price also increased by 6%, to $150,000.
The high demand for vacant land is likely being driven by a number of factors, including the growing population, the desire to build custom homes, and the increasing popularity of outdoor recreation.
Buyers and sellers of vacant land should be aware of the latest trends and regional variations when making decisions about buying or selling vacant land.
Sources
- National Association of Realtors
- Zillow
- Census Bureau
- Bureau of Labor Statistics
- land.com