Whether you're buying, selling, or investing, understanding
what drives land value can help you make smarter decisions. Unlike homes, land
doesn't depreciate — but its value can rise dramatically when certain
characteristics are in place. From location and water access to zoning and
utilities, here are the top five factors that influence land pricing.
1. Location & Accessibility
The oldest rule in real estate still applies: location
matters. For land, location is about more than just proximity to town — it also
includes:
Distance to highways, schools, hospitals, and shopping
Nearby recreation (lakes, mountains, national forests)
Regional growth and development trends
Surrounding land use (farms, ranches, subdivisions,
industrial areas)
Easily accessible land with nearby amenities or recreation
often commands a higher price. Remote land can still hold value — especially if
it offers privacy, hunting, or scenic views — but lack of access roads can
reduce demand.
2. Utilities & Infrastructure
The cost to bring utilities to raw land can be significant.
Properties with existing improvements are more valuable, including:
Electric access or on-site power
Water: wells, irrigation shares, or city water availability
Septic or sewer options
Internet and fiber availability
Driveways, fencing, gates, or outbuildings
Even basic infrastructure — like a cleared building site or
gravel drive — can give a property a competitive edge.
3. Water Features & Rights
Water is one of the most valuable resources for rural land.
Price influences include:
Irrigation rights or ditch shares
River, creek, or pond access
Potential for building a pond
Proven well depth and production
Water conservation or agricultural allocations
In western states, water rights can be worth more than the
land itself — and they dramatically impact farming, ranching, and recreational
land value.
4. Land Quality, Soil & Terrain
The physical characteristics of a property play a major role
in its value and usability. Key considerations include:
Soil quality for farming or food plots
Gentle terrain vs. steep slopes
Pasture vs. timber vs. scrub brush
Flood zones or wetlands
Wildlife habitat and mature timber value
Flat, fertile, buildable land with grazing capacity or crop
potential is usually more valuable than land that is rocky, steep, or
flood-prone.
5. Zoning, Restrictions & Land Use Flexibility
What you can or cannot do with land impacts price. Buyers
look for flexibility, including:
Agricultural, recreational, residential, or commercial
zoning
HOA/CCR restrictions or lack thereof
Mineral, timber, and hunting rights
Potential for subdivision or development
Land with multiple use-case potential attracts a larger
buyer pool and typically commands a premium.
🌱 Final Thoughts
Land is a stable, tangible investment — and when you
understand what drives value, you can make confident decisions whether you're
buying your first acreage, developing rural property, or preparing land for
sale. Evaluate each parcel on its location, improvements, water, soil quality,
and allowable use to determine true market potential.