The Upsides and Downsides of Buying Land in Tennessee in 2026

Buying land in Tennessee can feel like a slam dunk: strong in-migration, expanding metro areas, and a deep agricultural tradition. But today’s market also brings real trade-offs—especially if you’re considering farm ground, recreational acreage, or a future homesite. Tennessee still has about 10.8 million acres of farmland and farms that average roughly 155 acres, yet only about 41% of the state’s land is considered prime farmland (both figures from the Natural Resources Conservation Service). Add rising land values and accelerating development pressure, and the “right” purchase depends heavily on your goals, timeline, and risk tolerance.

Getting Acquainted with Tennessee

Stretching from the Appalachian Mountains in the east to the Mississippi River valley in the west, Tennessee offers major geographic variety in one state. It borders eight states: Kentucky (north), Virginia (northeast), North Carolina (east), Georgia, Alabama, and Mississippi (south), Arkansas (west), and Missouri (northwest).

About 6.7 million people live in Tennessee, and the state covers 42,143 square miles—larger than Belgium. While most residents cluster around urban and suburban corridors, rural land still dominates the map, which is why acreage buyers continue to look here.

Tennessee’s climate is generally mild, with humid summers and moderate winters. Average summer highs reach around 89°F, and typical winter lows sit near 34°F. Rainfall is steady, supporting forests, pasture, and row-crop production across much of the state.

Economically, Tennessee remains diversified across agriculture, manufacturing, healthcare, logistics, and tourism. Companies such as FedEx, Dollar General, and AutoZone have major headquarters or operations here. Cultural draws—from Beale Street to Lower Broadway—combine with destinations like Dollywood, Graceland, and the Great Smoky Mountains to support a tourism economy often estimated around $20 billion.

The Potential Perks of Buying Land in Tennessee

1) Aesthetic, Recreational, and Lifestyle Value

Many buyers start with the scenery—and Tennessee delivers. From Appalachian ridgelines to pastureland, hardwood forests, lakes, and waterfalls, land here can support everything from a quiet cabin site to hunting, boating, and trail access.

2) Four Seasons Without the Extreme Cold

Tennessee typically offers distinct seasons—mild springs and falls, manageable winters, and warm summers. That makes the state appealing for year-round use, whether you’re building, farming, or holding recreational acreage.

3) A Strong Agricultural Identity (and Real Momentum in Land Values)

Tennessee agriculture is more than a backdrop; it’s an economic engine. In 2021, crop sales totaled about $2.1 billion, and the broader agriculture industry has been estimated around $3.9 billion. If you’re evaluating land as a long-term store of value, recent USDA data also shows notable appreciation:

• According to the USDA National Agricultural Statistics Service (NASS) Land Values Summary Report, Tennessee farmland values increased 7.7% in 2025, the second-highest rate in the nation.
• According to the USDA National Agricultural Statistics Service (NASS) Land Values Summary Report, Tennessee cropland values increased 7.8% in 2025, the third-highest rate nationally.

For context, national averages rose too, but at a slower pace:

• According to the USDA National Agricultural Statistics Service (NASS) Land Values Summary Report, the average U.S. agricultural real estate value reached a record $4,350 per acre in 2025, up 4.3% from 2024.
• According to the USDA National Agricultural Statistics Service (NASS) Land Values Summary Report, the average U.S. cropland value reached $5,830 per acre in 2025, up 4.7% from 2024.
• According to the USDA National Agricultural Statistics Service (NASS) Land Values Summary Report, the average U.S. pastureland value reached $1,920 per acre in 2025, up 4.9% from 2024.

If you’re comparing Tennessee acreage to national trends, those figures help you benchmark whether an asking price makes sense for cropland, pasture, or mixed-use property.

4) A Deep Bench of Family-Owned Operations

If you want to buy land in communities where agriculture is rooted and multi-generational, Tennessee stands out. According to the USDA Census of Agriculture, 97.5% of farms in Tennessee are family-owned, among the highest rates in the nation. That often translates into strong local knowledge, established farm services, and a culture that understands land stewardship.

5) Conservation Efforts That Can Support Long-Term Rural Character

Development pressure is real (more on that below), but Tennessee is also expanding tools to keep working lands productive. According to the Land Trust for Tennessee and Tennessee Department of Agriculture, the state has protected nearly 140,000 acres of farmland and forests through voluntary conservation easements as of 2025. And according to the Tennessee Governor's Office and Tennessee Department of Agriculture, the Farmland Preservation Act was signed into law in 2025, establishing permanent conservation easements and grant funds to support voluntary farmland preservation.

Possible Downsides of Tennessee Land Ownership

1) Land Prices Can Swing Dramatically by County (and Even by Road)

Tennessee is not a single market. An acre near fast-growing metros can cost orders of magnitude more than rural land in the same region. You can still find rural acreage at comparatively low prices, but you must price based on utilities, access, zoning, soils, and nearby development—not just the county name.

2) Development Pressure Is Shrinking Farmland

One of the biggest “hidden” risks for buyers who want long-term rural surroundings is how quickly land use can change. According to the Tennessee Public Service Institute and Tennessee Department of Agriculture, Tennessee has been losing 237.2 acres of farmland per day (86,588 acres per year) since 2017, largely due to development and urban sprawl. This can cut both ways: it may increase scarcity and values in certain areas, but it can also bring traffic, noise, and incompatible neighboring uses.

3) Not All “Farmable” Land Is Prime

Tennessee has significant agricultural acreage, but quality varies. The Natural Resources Conservation Service estimates that only about 41% of the state’s land qualifies as prime farmland. If you’re buying for crops, pasture improvement, or long-term lease potential, verify soils, slope, drainage, and access to water before you assume the land will perform.

4) Weather and Water Risk Require Planning

Tennessee can see severe thunderstorms, localized flooding, and occasional remnants of tropical systems. If you plan to build—or even just cut roads—confirm drainage patterns, culvert needs, and insurability early. Always check FEMA flood maps for low-lying areas near rivers and creeks.

5) Local Rules Create a Patchwork of What You Can Build

Zoning, septic requirements, road standards, and permitting processes vary widely by county and municipality. In some rural areas, rules can be minimal; near cities and suburbs, they can be strict. Confirm what’s allowed before you close, especially if you want multiple dwellings, short-term rentals, agricultural structures, or commercial use.

6) Maintenance Costs Add Up—Even on “Raw” Land

Owning land typically means recurring costs: property taxes, insurance, brush control, boundary maintenance, and sometimes roadwork or driveway improvements. If you plan to build, utilities and site prep can exceed expectations, especially on steep or wooded tracts.

Key Buying Considerations (Practical Checklist)

Use this list to evaluate Tennessee land the way lenders, builders, and experienced buyers do:

• Location and market behavior: Pull comparable sales, understand growth plans, and identify nearby infrastructure projects.
• Topography and soils: Match the terrain to your intended use. In East Tennessee, slope can make building and farming significantly more expensive.
• Access and easements: Confirm deeded access, road frontage, and any shared-drive or utility easements.
• Utilities: Verify power availability, water source options (public water vs. well), and internet feasibility if you need to work remotely.
• Zoning and permitting: Confirm allowed uses, minimum home size rules, setback requirements, and septic permitting standards.
• Flood and drainage risk: Check FEMA maps, walk the land after rain if possible, and look for erosion channels and low crossings.
• Neighboring land use: Drive the area, check nearby zoning, and look for signs of imminent development that could change your experience.

Bottom Line: Is Tennessee the Right Place to Buy Land?

Tennessee can be an excellent place to buy land—especially if you value natural beauty, recreational access, and a state where agriculture still shapes community identity. At the same time, today’s buyers face fast-changing conditions: farmland is being converted to development, and land values have been rising quickly in some categories.

Make your decision with clear priorities (farm income, a homesite, recreation, long-term appreciation), verify the physical realities of the tract (soils, slope, access, water), and confirm the local rules that govern what you can actually do. With strong due diligence and the right property, Tennessee land can be both personally rewarding and financially resilient.

Frequently Asked Questions (FAQs)

How much does land cost in Tennessee?

Prices vary sharply based on proximity to growth corridors, utilities, zoning, and whether the tract is suited to building or agriculture. Metro-adjacent acreage can command premium pricing, while rural land can be far less expensive. Use local comparable sales and also benchmark broader trends: the USDA National Agricultural Statistics Service (NASS) Land Values Summary Report reports that average U.S. agricultural real estate reached $4,350 per acre in 2025 and average U.S. cropland reached $5,830 per acre in 2025, which can help you sanity-check valuations depending on land type.

Is farmland in Tennessee still a good investment?

It can be, but it depends on tract quality, location, and your holding period. Recent appreciation has been strong: the USDA National Agricultural Statistics Service (NASS) Land Values Summary Report shows Tennessee farmland values rose 7.7% in 2025 and Tennessee cropland values rose 7.8% in 2025. At the same time, the Natural Resources Conservation Service notes that only about 41% of Tennessee land is prime farmland, so do not assume every “farm” listing has the same income potential.

What taxes and ongoing costs come with owning land?

Expect property taxes, insurance (especially if you build), and maintenance such as mowing, driveway work, fencing, and timber or brush management. Local tax rates and fees vary by county and city, so confirm costs using the parcel’s assessed value and local millage.

How is development affecting rural land in Tennessee?

Development pressure is one of the biggest forces shaping land availability. The Tennessee Public Service Institute and Tennessee Department of Agriculture reports Tennessee is losing 237.2 acres of farmland per day (86,588 acres per year) since 2017, largely due to development and urban sprawl. On the preservation side, the Land Trust for Tennessee and Tennessee Department of Agriculture says nearly 140,000 acres have been protected through voluntary conservation easements as of 2025, and the Tennessee Governor's Office and Tennessee Department of Agriculture notes the Farmland Preservation Act (2025) created permanent easements and grant funding to support voluntary preservation.

Should I buy woods, pasture, or cropland?

Match the land type to your goal. Wooded tracts often maximize privacy and recreation but can complicate building. Pasture can work well for livestock and may be easier to maintain than forest, while cropland can offer stronger lease income in the right area. For valuation context, the USDA National Agricultural Statistics Service (NASS) Land Values Summary Report puts average U.S. pastureland at $1,920 per acre in 2025 and average U.S. cropland at $5,830 per acre in 2025.

What rules apply to building on land in Tennessee?

Rules depend on the county and municipality. Always verify zoning, minimum square footage, permitted structures, setbacks, driveway requirements, and septic approval before you buy—especially if you plan to subdivide, add multiple units, or run a short-term rental.