By Emmy Powell
Communications Specialist
Rural land values in Texas reached a new high in 2025, even as sales activity showed signs of stabilizing after several slower years, according to a new report from the Texas Chapter of the American Society of Farm Managers and Rural Appraisers.
The annual Rural Land Value Trends Report tracks land prices, lease rates and market activity across the state.
“This is one of the best documents available for those interested in the sales value and lease value of rural lands in Texas,” Tiffany Dowell Lashmet, agricultural law specialist, said in a blog. “It is also the only publication of which I am aware that provides information on the value of hunting leases.”
This 2025 report points to a land market that remained steady despite broader economic pressures.
“The Texas rural land market demonstrated remarkable resilience throughout 2025, ending the year on a significantly firmer footing than in 2024,” Lynn Krebs, research economist at Texas A&M University, said in the report.
While trends varied by region, the overall stability underscores continued demand for rural property.
Statewide, rural land prices reached a new record high of $5,214 per acre by the fourth quarter, marking a 6.56% year-over-year increase. Growth accelerated throughout the year, with price gains strengthening each quarter.
Market activity also showed improvement. Sales volume increased 8.16%, the strongest quarterly growth since late 2021 and a reversal after three consecutive years of decline. While total acres sold dipped slightly by 0.32%, total dollar volume rose 6.22%, driven by higher land prices.
Longer-term trends remain strong, with a five-year annual growth rate of 10.73%. However, activity has not fully returned to pre-2019 levels.
Compared to 2019, total sales volume and acres sold are still down 29.37% and 33.86%, respectively, though total dollar volume has climbed 16.82%.
The report breaks Texas into seven regions that are each further divided into subregions. For each area, the report provides price and lease rate information across a range of land uses, including irrigated cropland, dryland farming, rangeland, Conservation Reserve Program acres, timberland and recreational properties such as hunting leases.
One notable shift in 2025 was a sharp decline in average tract size, which fell 31.6% to 1,578 acres. This unusual contraction, largely influenced by changes in Far West Texas, signals a broader move toward smaller transactions in some areas.
Regional trends varied across the state.
West Texas posted one of the largest price gains, up 13.49% to $2,878 per acre. The Austin–Waco–Hill Country region climbed 8.15% to $7,911 per acre, alongside a 10.84% increase in sales and 22.93% jump in dollar volume.
South Texas and Northeast Texas saw strong rebounds in activity, with South Texas sales up 25.16% and dollar volume rising 26.53%, and Northeast Texas dollar volume increasing 21.61%.
The Gulf Coast–Brazos Bottom region recorded a 10.63% price increase to $11,502 per acre, but overall activity remained relatively flat.
In contrast, the Panhandle and South Plains saw prices dip 1.61% to $1,832 per acre, despite gains in sales and acreage.
Far West Texas remained volatile, with sales surging 184% and prices rising 20.35%, although total dollar volume declined due to smaller tract sizes.
According to the report, declining tract sizes and rising sales volumes signal a more active market across several regions, even where price growth was modest.