If you’re wondering how much is an acre of land in Texas, the statewide average in 2025 is around $2,400 to $4,500 per acre, depending on location, land type, and access to utilities. Rural areas and West Texas often offer land under $2,000 per acre, while Central Texas and areas near big cities like Austin, Dallas, and Houston can cost more than $30,000 per acre for residential lots. Prices vary widely because Texas is huge, with diverse geography, demand, and economic growth patterns.
This guide takes you through everything you need to know about Texas land prices—from average costs and regional differences to financing, future trends, and smart buying tips. Whether you’re an investor, rancher, farmer, or first-time buyer, understanding how land is valued in Texas can help you make informed decisions.
How Much Is an Acre of Land in Texas?
Texas has more land than any other U.S. state, making it one of the most dynamic markets for land sales. The average price per acre in Texas is approximately $2,426 statewide, but this figure masks significant variations across counties and land types.
For instance:
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West Texas ranch land may sell for $1,000–$1,500 per acre.
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East Texas timberland often ranges from $2,000–$4,000 per acre.
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Central Texas residential lots can skyrocket past $25,000 per acre.
Over the last decade, prices have steadily risen due to population growth, housing demand, and investment interest. While Texas remains affordable compared to coastal states, the trend suggests land here is becoming more valuable every year.
Factors That Influence the Price of an Acre in Texas
When asking how much is an acre of land in Texas, it’s important to understand why prices vary. Several key factors affect land costs:
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Location – Land close to major cities like Dallas, Houston, San Antonio, or Austin is far more expensive than rural counties.
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Land Type – Agricultural land, timberland, ranches, hunting properties, and residential lots all carry different values.
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Utilities & Infrastructure – Land with road access, electricity, water, and sewer hookups costs significantly more than raw, undeveloped acreage.
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Soil & Natural Resources – Fertile farmland or land with timber and mineral rights can command higher prices.
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Future Development Potential – Areas with planned highways, schools, or commercial growth see land values rise quickly.
In short, the question isn’t just “how much is an acre of land in Texas?” but rather “where in Texas, and for what purpose?”
Regional Breakdown of Land Prices Across Texas
Because Texas is larger than many countries, land prices vary significantly across different regions. Here’s a breakdown:
North Texas
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Includes Dallas–Fort Worth area.
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Prices range from $5,000 to $35,000+ per acre near cities.
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Rural counties still offer land for $2,000–$4,000 per acre.
West Texas
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Known for wide-open ranch land.
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Some of the cheapest land in the state, averaging $1,000–$2,000 per acre.
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Sparse water and utilities keep costs low.
East Texas
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Rich in forests and farmland.
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Prices usually $2,500–$5,000 per acre, depending on timber value and location.
Central Texas & Hill Country
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Highly desirable region near Austin, San Antonio, and the Hill Country.
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Residential lots often $10,000–$50,000 per acre.
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One of the fastest-rising markets in Texas.
South Texas
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Ranching and hunting land dominate.
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Prices range $1,800–$4,000 per acre, with large tracts still affordable.
Comparison Table: Average Price Per Acre in Texas (2025)
| Region | Average Price Per Acre (2025) | Land Type Highlights |
|---|---|---|
| North Texas (DFW) | $5,000 – $35,000+ | Residential & commercial growth near Dallas–Fort Worth |
| West Texas | $1,000 – $2,000 | Ranch land, wide open spaces, limited utilities |
| East Texas | $2,500 – $5,000 | Timberland, fertile farmland, and recreational properties |
| Central Texas / Hill Country | $10,000 – $50,000+ | Residential lots, high demand near Austin & San Antonio |
| South Texas | $1,800 – $4,000 | Ranches, hunting land, mixed agricultural use |
Agricultural and Ranch Land Costs in Texas
Agriculture plays a central role in Texas’s economy, and many buyers search for farmland or ranchland.
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Farmland: Depending on soil quality and water availability, farmland averages $2,000–$3,500 per acre.
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Ranchland: Large ranches, particularly in West and South Texas, can go for $1,200–$2,200 per acre.
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Recreational/Hunting Land: Properties with wildlife, lakes, or rivers often sell at premium prices, ranging from $3,000–$6,000 per acre.
The type of agricultural exemption on the property (such as for cattle, timber, or crops) can also reduce tax costs, making land ownership more affordable in the long term.
Residential and Commercial Land Pricing
If you’re buying land to build a home or develop commercially, the price landscape is very different:
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Residential Lots in Cities: $20,000–$50,000 per acre (higher in Austin).
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Suburban Lots: $5,000–$15,000 per acre, depending on access to schools and jobs.
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Commercial Land: Priced by location, often $50,000+ per acre in major metro areas.
Residential and commercial buyers typically pay more because infrastructure, zoning, and demand drive up costs.
Trends in Texas Land Prices (Past 10 Years)
Looking back, Texas land prices have grown steadily over the past decade:
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2010s: Average was around $1,500 per acre statewide.
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2020: Surpassed $2,200 per acre due to housing demand.
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2025: Currently $2,400–$4,500 depending on region.
The surge is driven by:
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Rapid population growth (Texas gains ~1,000 new residents daily).
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Rising housing costs are pushing people toward land purchases.
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Investors seeking long-term value in land assets.
Financing Land in Texas – What Buyers Should Know
Buying land isn’t the same as buying a house. Most banks treat land loans differently:
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Down Payment: Typically 20–30%.
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Loan Terms: Shorter (10–20 years).
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Interest Rates: Slightly higher than mortgages.
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Special Programs: Some Texas lenders, like the Texas Farm Credit system, specialize in rural land loans.
Buyers should budget not just for the land price, but also for closing costs, surveys, and potential improvements (like roads or fences).
Taxes, Fees, and Hidden Costs of Owning Land
Owning land comes with ongoing costs beyond the purchase price:
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Property Taxes: Texas has relatively high property taxes.
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Ag Exemptions: Agricultural, timber, or wildlife exemptions can lower tax bills.
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Maintenance Costs: Fencing, road upkeep, and weed control.
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Utility Installation: Drilling wells, installing septic systems, or bringing power lines can add tens of thousands.
Who’s Buying Texas Land?
The Texas land market attracts a wide variety of buyers:
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Local Ranchers & Farmers expanding operations.
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Developers are buying land near highways and cities.
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Investors (including out-of-state) are looking for long-term appreciation.
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Individuals seeking recreational or retirement property.
Demand is especially strong from Californians and Northeasterners relocating to Texas.
Future Outlook – Will Texas Land Prices Rise?
Most experts believe Texas land prices will keep climbing due to:
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Population growth (expected to reach 40 million by 2050).
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Housing shortages in cities.
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Infrastructure expansion (new highways, airports, and rail projects).
However, certain rural areas may stay affordable for decades, especially in West Texas.
Tips for Finding Affordable Land in Texas
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Look in rural counties with lower demand.
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Consider larger tracts (often cheaper per acre).
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Work with local brokers who know hidden deals.
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Explore online land platforms like Lands of Texas or Zillow Rural Land listings.
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Check county tax auctions for distressed properties.
Conclusion
So, how much is an acre of land in Texas? The answer depends on where you buy and what kind of land you’re after. While the statewide average hovers around $2,400–$4,500 per acre, prices range from under $1,000 in remote ranchlands to $50,000+ in urban residential zones.
For buyers, this means opportunity—whether you’re after affordable rural acreage, farmland with tax benefits, or prime residential lots in booming cities. With Texas’s strong economy, growing population, and vast open spaces, land here remains one of the best long-term investments in the U.S.
FAQs – Quick Answers About Texas Land Prices
Q: What’s the cheapest county in Texas to buy land?
A: Rural West Texas counties like Hudspeth and Culberson often list acres for under $1,000.
Q: How much is an acre near Dallas, Houston, or Austin?
A: Expect $15,000–$50,000+ depending on proximity to the city center.
Q: Can foreigners buy land in Texas?
A: Yes, Texas has no restrictions on foreign ownership of land.
Q: Is Texas land a good investment?
A: Historically, yes—values have steadily risen for decades, especially near growing cities.
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