Last year, soaring real estate prices and property shortages continued, leaving many to consider an alternative. Land investment may not be as common as residential real estate, rental properties, or REITs, but it’s looking like a solid choice in 2023, and beyond.
Investments in land have steadily increased over the last decade. Investors may purchase land for agricultural purposes or residential and commercial real estate. Regardless of the purpose, all types of land for sale have recently seen an increase in demand.
Here are some of the latest trends and why you should consider purchasing land.
NY Land Sales Are on the Rise
According to the REALTORS® Land Market Survey, land sales increased by 6% in 2021, surpassing the sales growth of commercial real estate properties, industrial buildings, and apartment buildings. The team at Sutton Real Estate has seen an increase in the number of land deals completed from 2021 to 2002 in upstate NY. According to experts, it’s a trend that’s likely to continue this year as demand increases and the value rises.
The announcement of Mircon investing $100 billion over the next 20-plus years in Onondaga County has sparked renewed interest in available land in surrounding areas where we lack housing – specifically multi-family housing. Upstate New York’s housing currently can’t support the nearly 50,000 jobs statewide promised to be created by the end of this decade. Securing land and real estate in Onondaga County and beyond is an opportunity to consider heavily for investors and developers in Upstate NY.
According to Stephen Saleski, a Real Estate Associate Broker at Sutton Real Estate Company…
“There seems to be a lot of investors and operators sitting on cash. The pent-up demand for investments, coupled with a lack of inventory for industrial and retail users space created much more activity than in the last few years.
I believe the continued lack of inventory for space, increased availability of construction materials, and continued consumer spending will keep land as a good investment in the short term.”
However, supply and demand also mean that as the amount of land for sale diminishes, prices will rise. Long term, this means the cost to invest will continue to go up, so it’s best to buy early and wisely.
Land Continues to Be a Stable Asset
The stock market is prone to fluctuations, making it occasionally volatile. Factors such as war, government policy changes, inflation, etc., can all cause the market to go up or down. As such, it can be risky purchasing stocks, especially as a beginning investor.
Safe assets, such as gold or land, provide stability. The value of land stays largely the same or even increases. That’s why many investors put their money into land as a way to keep their wealth safe.
Land also offers a great deal of versatility. For instance, it can be used for a residential property or a commercial office space.
Farmland Value in 2023
Russia produces around 25% of the world’s nitrogen fertilizer. Production has slowed due to the Russia-Ukraine conflict. It’s essentially off the market or far more costly than before the war. As the conflict continues, it’s likely to impact land prices this year.
Land, especially farmland, is usually held for a long time and often passed down to other family members. That’s one reason that supply is so limited. However, this also makes farmland valuable. And the demand will only increase as more people seek stability during difficult times or want more room for their families.
The COVID-19 pandemic created a surge of people flocking to rural areas. It sparked interest in the cottagecore movement, which focuses on sustainability, simplicity, and agricultural life.
While the shift from city to rural life isn’t as strong as during the pandemic, many people still see the value in farmland. Expect demand to continue throughout the year.
Land Sales Trends in 2023 and Beyond
These trends demonstrate the value of investing in land in 2023 and beyond. It’s a stable asset that you can rely on.
Are you in need of a broker to find land for sale here in New York? Take a look at what we have available at Sutton Real Estate Company, or contact us with any questions you have about our listings.