The Texas land report for 2014 analyzes small land parcel sales throughout seven regions in Texas. Statewide, 5,282 small land tracts were sold in Texas in 2014, a 20.69 percent increase from 2013. As in 2013, the hill country region around Austin posted the most small land sales with 1,722 parcels changing hands.
The average price per acre for Texas small land sales also showed strong gains in most regions in 2014, increasing 3.5 percent year-over-year to $5,018 per acre statewide. The average parcel size was around 20 acres. Below, we’ve focused on the regions surrounding Dallas and Houston.
North Texas is defined as region four. It includes the Metropolitan Statistical Areas for Dallas-Fort Worth-Arlington, Wichita Falls, Sherman, Denison, Texarkana, Longview and Tyler. The north and east sides of the region are bordered by Oklahoma, Arkansas and Louisiana. In this region, land sales of 33 acres or smaller were calculated.
1,428 small land sales transacted in 2014, a 17.01 percent increase compared to 2013.
The median tract size in Region Four was 17 acres in 2014, a 5.55 percent decrease from 2013.
The average price per acre in 2014 was $7,543, an 8.25% increase over 2013.
Most of the land sales in region 4 are for residential and recreation purposes, usually for buyers from the Dallas – Fort Worth metro area.
The gulf coast region is defined as region five. It includes the southeast of the state and one of the largest Metropolitan Statistical Areas, including Houston-Sugar Land-Baytown, College Station-Bryan, Victoria and Beaumont-Port Arthur. In this region, small land sales consist of land parcels 42 acres or smaller. Like the north Texas region, most of these land parcels were purchased by city dwellers seeking a weekend getaway for recreational purposes. Despite the oil price decline in quarter 4 of 2014, land sales were robust, and also averaged the highest price per acre in the state.
Region Five had 1,238 small land sales in 2014, a 34.16 percent increase compared to 2013.
The median tract size in Region Five was 18 acres in 2014, a 10 percent decrease from 2013.
Average price per acre for Region Five was $9,167 per acre in 2014, a 0.31 percent decrease compared to 2013.
It will be interesting to see if the oil price decline will have an effect, particularly around the region five Houston area in 2015. However, look for home builders and land developers to continue to seek small and large land parcels near metro areas – notably, the golden triangle area between Dallas, Houston and Austin-San Antonio. There is still a shortage of homes for sale and home builder lots to accommodate the significant Texas population growth.
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