Texas 2018 Third Quarter Land Market Report

Buoyed by climbing oil prices, land markets in far-west Texas saw continued demand for land for industrial uses continue to push prices higher. Northeast Texas also posted very strong price growth followed by more modest increases in south Texas. The Hill Country and west Texas rose slightly while the Gulf Coast posted the same price as 2017. These developments ensured that at $2,738 per acre, Texas land prices continued to climb at a moderate pace in the third quarter of 2018. Sparked by energy sector and hurricane rebuilding, demand for recreational and investment properties pushed overall statewide prices up 6.17 percent over the third quarter 2017 price. Those results represented the strongest growth since 2015. The 5,440 reported sales fell 12.3 percent short of 2017 volume. However, the figures are preliminary, so future reports may expand those volume results. The overall Texas land market continued to thrive with positive trends. The one dark cloud hovered over the panhandle and south plains where regional prices continued a retreat.

As the fall unfolds, good news prevails with growing economic activity, historically low unemployment, and rising oil prices. All of these developments point to smooth sailing for the foreseeable future. The fly in the ointment is emerging in the stock market as it registers wild swings with a decidedly negative trend. Bond prices are falling as rates rise. These developments cast a shadow on an otherwise sunny situation.

Texas Rural Land Prices | 2010–2018 Third Quarter
Changes in Texas Rural Land Prices | 2010–2018 Third Quarter

Source: Real Estate Center, Texas A&M University


  • DR. CHARLES GILLILAND currently holds an appointment as a Research Economist with the Real Estate Center in the Mays School and an appointment as Adjunct Associate Professor of Agricultural Economics at Texas A&M University. In addition, Dr. Gilliland is Helen and O.N. Mitchell Fellow of Real Estate and a Clinical Professor of Finance teaching real estate investment analysis for the Master of Real Estate program in the Mays School at Texas A&M University.

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