2025 Land Real Estate Trends
As interest rates begin to cool and markets show signs of strength, 2025 is slated to be another great year in the land industry, offering opportunities for both buyers and sellers alike. While many aren’t expecting the kind of rapid appreciation observed in the years immediately following COVID-19, most see 2025 in a similar light to 2024 as a year of stability in the land market.?
Here are a few 2025 land real estate trends buyers and sellers can expect to see throughout the coming year!?
Low Listing Inventory
Across the country, many of our agents are still experiencing low listing inventory. This was the case throughout last year and is likely to continue through 2025. While there’s no shortage of buyers, properties available for purchase remain limited in many markets. This scarcity has led to a quick turnaround time for many sellers, with quick sale times and great offers from competing buyers.
2025 is likely to be a favorable market for sellers as high buyer demand tends to drive competition and increase final sale prices. With interest rates starting to decline, more buyers may be willing to pull the trigger on purchases they’ve put off for the past few years, making 2025 a good year for landowners looking to divest their landholdings.
Stability in Farmland Values
2024 saw a plateauing of farmland values after the rapid appreciation seen in the wake of COVID-19. Farmland values around the country largely remained stable. Some areas saw some slight depreciation, but on the whole, values held remarkably well in the face of supply chain shortages, ongoing droughts, and other challenging factors.
During a recent episode of the National Land Podcast, Vice President of Business Development for Acres.com Ben Maddox spoke to his anticipation for farmland values to remain stable throughout the year.?
He stated, “I think there may be short-term disruptions but overall my slight prediction for the year is that business will go on as usual. There may be complications with trade wars or tariffs, but I think if you look at previous cycles be it the last round of tariffs, COVID, the Great Recession, or any of these moments of turmoil, farmland has endured and maintained its value through those times. I think things will keep going on as they were before, there may be a lot of noise but if you take these short-term events with a long-term mindset, we’ll wake up in 12 months and farmland will be the same asset class as it is today.”
Increased Urban Development
Over the past few years, we’ve seen a significant increase in demand for certain kinds of commercial development properties. This trend began during COVID-19 as developers transitioned away from traditional office spaces toward large-scale warehouses to serve as fulfillment centers for e-commerce.
The latest development trend comes in the form of massive data centers used by tech companies to store and process their data. These centers require large amounts of power to operate, which makes site selection a challenge for developers. As such, they’ve begun looking at farmland properties within proximity to existing power stations and energy infrastructure.
These kinds of industrial uses have driven up demand for rural land, creating opportunities for landowners whose properties meet the necessary criteria for developers to profit. Acquisitions of this nature are likely to continue well throughout 2025 as advancements in technology like AI and cryptocurrency mining necessitate further development.
The land real estate market is looking to have plenty of opportunities for buyers and sellers alike in 2025. No matter your situation, National Land Realty is here to help you every step of the way. Get in touch with your local Land Professional here!?
This article was originally written by Bryce Berglund for the National Land Blog.