We all learned in economics class about supply and demand and how they affect price.
If demand goes up, but supply can’t match it, that drives up price.
So if you are going to invest in something, you should keep that principle in mind.
And where do we see increasing demand right now where supply cannot possibly keep up? US land. Rural land, in particular.
Why Buy Rural US Land? Here are the Stats
- The US contains 2.3 billion acres of total land.
- Out of those 2.3 billion acres, there are 922 million acres of ag-land. Agricultural products are responsible for $985 billion of the US GDP plus more than 23 million jobs. That is a hefty chunk of the US economy.
- There are also 73 million acres of rural residential land.
- 66 million acres of American soil is development urban land.
- Since 2016, pasture value per acre has gone up $20.
- Since 2016, farm real estate value per acre has gone up $70.
- Cropland value per acre holds strong at $4,090.
What is Pushing Up Demand for Rural US Land?
- The economy has achieved significant recovery since the recession. This is plain if you look at data on wages, employment, interest rates, the stock market, and lumber prices. So consumer confidence has surged (it was just 37.4 in January 2012, and now it is up to 134.1 in 2019). So demand has increased.
- Now is the time to build. The cost of housing is soaring across the country right now, particularly along the West Coast. There is simply not enough housing to go around, so developers are making a push to build new communities on existing rural land.
- Millennials love to travel, and enjoy visiting rural destinations. So the tourism value of rural land has gone up.
- The need to feed a hungry populace hasn’t diminished. It just continues to grow, further fueling the value of agricultural land, especially when it comes to growing products like corn, cotton, soybeans and wheat. Pork is also big right now.
- There is increased opportunity to turn a profit in agriculture right now, since farms are becoming more energy-efficient.
Your Ideal Investment Is Waiting For You
Trends come and go, but rural land’s scarcity is here to stay, along with its ever-growing demand. And thanks to online resources, buying land is now easier than ever. Search LandHub if you are ready to find your next investment.