A 2026 Guide to Investing in Texas Land

Texas land still plays by its own rules: massive geography, fast-changing local markets, and a mix of ranching, recreation, and development demand. That’s the opportunity—and the challenge. If you want to invest well, you need current pricing benchmarks, a clear strategy, and disciplined due diligence.

Recent data shows the market remains active, but it’s moving at different speeds depending on region and tract size. Statewide rural land price reached $4,827 per acre through first quarter 2025, up 2.68% year-over-year, according to the Texas Real Estate Research Center at Texas A&M University. Smaller tracts often command a premium: Texas small rural land sales statewide averaged $10,242 per acre, up 6.42% year-over-year, per Texas A&M AgriLife Research (TAAD presentation).

Know Your Territory (Because Texas Isn’t One Market)

Texas is huge, and land values reflect that. You can’t apply a single rule of thumb from the Hill Country to West Texas and expect the same results. Start by defining your target use case—agricultural production, recreational access, future development, or long-term land banking—then match it to a region where that plan makes sense.

Regional benchmarks help you sanity-check listings:

• The Austin–Waco–Hill Country region recorded a median price of $7,291 per acre in Q1 2025, up 1.32% year-over-year, according to the Texas Real Estate Research Center at Texas A&M University.
• West Texas reached a median price of $2,662 per acre in Q1 2025, up 12.89% year-over-year, per the Texas Real Estate Research Center at Texas A&M University.
• Gulf Coast–Brazos Bottom increased 11.04% to $10,289 per acre in Q1 2025, per the Texas Real Estate Research Center at Texas A&M University.

Also separate “rural land” from “farm real estate” when you compare pricing. In 2024, average farm real estate value increased 6.1% to $2,970 per acre in Texas, and cropland average value increased 5.4% to $2,710 per acre, according to the Texas Farm Bureau (USDA report). Those numbers can be useful reference points if your investment thesis depends on agricultural productivity rather than recreational or development potential.

Finding Your Slice of Texas

Great land deals rarely come from a single channel. Use multiple paths to build a stronger pipeline and a better sense of “normal” pricing in your target county.

1. Start online, then verify locally. Listings help you spot trends, but sold comps and local context determine real value.
2. Get boots on the ground. Walk the area, drive access roads, and talk with neighbors about flooding, easements, and seasonal conditions.
3. Network for off-market opportunities. Local land groups, auctions, and ag communities often surface properties before they hit major sites.
4. Work with a land specialist. A land-focused agent can flag water constraints, access issues, and realistic resale dynamics.
5. Check county records. Ownership maps and tax records can reveal potential sellers who are not actively marketing.

Understand Price by Tract Size (Small Acreage vs. Large Tracts)

In Texas, per-acre pricing can swing dramatically based on tract size, access, improvements, and proximity to growth corridors. If you’re comparing a 15-acre ranchette to a 1,500-acre ranch, you’re not comparing the same product.

Statewide size-based benchmarks underscore the difference:

• Small rural land sales averaged $10,242 per acre (up 6.42% year-over-year), according to Texas A&M AgriLife Research (TAAD presentation).
• Large tracts rural land prices statewide were $4,776 per acre (up 1.88% year-over-year), per Texas A&M AgriLife Research (TAAD presentation).
• A separate statewide large-tract metric placed Texas rural land price per acre for large tracts at $1,862 (up 8.19% year-over-year), also reported by Texas A&M AgriLife Research (TAAD presentation).

Use these figures the right way: not as a promise, but as guardrails. If a property is priced far above its peer group, you should be able to explain why (water, frontage, utilities, improvements, or development path). If it’s far below, assume there’s a reason and investigate aggressively.

Kicking the Tires: Land Due Diligence That Protects Your Upside

Land can look perfect in photos and still be a money pit in person. Before you negotiate hard, verify the fundamentals.

Walk the property and validate the “value drivers”

Confirm road access, topography, drainage, and usable acreage. Identify water sources (wells, tanks, creeks), assess soil quality if you plan to graze or farm, and look for signs of erosion or flood exposure. If minerals matter to your strategy, clarify what conveys and what does not.

Order a survey and a title search

Boundary clarity and clean title protect resale value. A title search helps uncover liens, easements, and deed restrictions that can limit building, hunting, or access.

Check zoning, deed restrictions, and tax classifications

In many counties, the difference between agricultural use valuation and a standard tax assessment can materially change your annual carrying costs. Align your intended use with what the county will recognize and what the deed allows.

Show Me the Money: Financing Texas Land

Land financing rarely works like a suburban mortgage. Many lenders require higher down payments, shorter terms, and stronger documentation—especially for unimproved acreage.

• Bank or credit union land loans for stable, well-documented deals
• Owner financing when a seller wants steady income and flexible terms
• Hard money for short timelines or value-add strategies (often at higher cost)
• Partnerships to share capital needs and diversify risk

Budget beyond the purchase price. Even raw land can require ongoing tax payments, fencing repairs, road maintenance, brush management, and insurance.

Crossing T’s and Dotting I’s: Legal and Resource Rights

Paperwork isn’t glamorous, but it determines what you truly own. A Texas real estate attorney can help structure the contract, confirm deed language, and reduce risk around exceptions and disclosures.

Pay special attention to water. Water access and well feasibility can make or break recreational use, livestock plans, or future home sites. Verify what rights convey with the property and which approvals or groundwater district rules may apply in your area.

Making Your Land Work for You

Texas land rewards investors who match the asset to a clear plan and realistic timeline. Common strategies include:

• Land banking: Hold for appreciation, especially near expanding metros and infrastructure.
• Leasing: Generate income through grazing, farming, hunting, or recreational access.
• Selective improvements: Add fencing, water, access, or utilities to increase usability and resale demand.
• Conservation approaches: Explore conservation easements where they align with your goals and tax strategy.

Land typically performs best as a long-term hold. Plan for time, transaction costs, and market cycles.

The Not-So-Sunny Side: Risks to Price Into the Deal

Land investment can be illiquid, which means selling quickly may require discounting. Local markets can also shift with interest rates, development patterns, and buyer demand. And Texas weather is real risk—drought, floods, and wildfires can impact access, carrying costs, and usable acreage.

Still, disciplined investors often succeed by buying with margin, verifying fundamentals, and holding long enough for the strategy to mature.

Your Land Dream Team

Build a team that knows rural Texas:

• Land-focused agent or broker for market reality and deal flow
• Surveyor for boundaries, access, and encroachments
• Real estate attorney for contract terms, title issues, and rights
• Tax professional for ag valuation, exemptions, and ownership structure
• Local contractors for fencing, gates, roads, wells, and brush work

Final Thoughts

Texas land can be a powerful portfolio diversifier and a practical real asset—if you treat it like an investment, not a postcard. Use current benchmarks to stay grounded. For example, statewide rural land averaged $4,827 per acre through Q1 2025 (up 2.68% year-over-year) per the Texas Real Estate Research Center at Texas A&M University, while small-acreage deals averaged $10,242 per acre (up 6.42% year-over-year) according to Texas A&M AgriLife Research (TAAD presentation). Those differences highlight why strategy, region, and tract size matter.

If you want hands-on support, some buyers work with experienced land-focused companies. For instance, Land Boss notes they’ve handled over 100 land transactions and emphasize local market knowledge and streamlined closings.

Frequently Asked Questions (FAQs)

How much does an acre of Texas land cost right now?

It depends on region and tract size. Statewide rural land price reached $4,827 per acre through first quarter 2025 (up 2.68% year-over-year), according to the Texas Real Estate Research Center at Texas A&M University. Regionally, the Austin–Waco–Hill Country median was $7,291 per acre (up 1.32% year-over-year), while West Texas median was $2,662 per acre (up 12.89% year-over-year), per the same Texas Real Estate Research Center at Texas A&M University. Smaller tracts often sell higher per acre, with small rural land sales averaging $10,242 per acre (up 6.42% year-over-year) per Texas A&M AgriLife Research (TAAD presentation).

Do I need to live in Texas to buy land there?

No. Texas allows out-of-state buyers to purchase land. If you’re a non-resident (or buying through an entity), talk with a tax professional about filing requirements and how property taxes and exemptions may apply to your situation.

What’s the deal with water rights in Texas?

Water access is highly location-dependent. Groundwater rules vary by groundwater conservation district, and surface water is regulated differently than groundwater. Before you close, confirm whether wells are feasible, what permits may be required, and what (if any) water-related rights convey with the deed.

How long does it take to sell land in Texas?

Timelines vary widely. Properties near growth corridors or with strong access and utilities can sell faster, while remote acreage may take much longer—especially if it’s priced above local comparables or has access, title, or water constraints.

Can I reduce property taxes on Texas land?

Possibly. Many owners pursue agricultural use valuation (often called an “ag exemption”) or timber-related valuation when they meet county requirements. Because rules are county-specific and enforcement varies, confirm eligibility early and document the land use that supports the valuation.