2020 Land Market Survey

Survey Shows Land the Only Commercial Asset with Positive Growth in 2020

April 20, 2021 (Chicago) The REALTORS® Land Institute (RLI) and National Association of REALTORS® Research Group have released the results of their latest Land Market Survey. The survey shows that while the COVID-19 pandemic battered the commercial real estate market in 2020, the land market held up to the pandemic’s severe blow, according to survey participants. A 3% increase in land sales contrasts starkly with a 40% drop in commercial sales transactions of properties or portfolios of at least $2.5 million.

Land sales prices were also on the rise, with respondents reporting a 2% increase on average in 2020. In contrast, the Green Street Commercial Price Index, an appraisal-based index of the properties held by REITS, indicates that commercial real estate prices fell 6% in 2020. The strongest price increases were reported in residential (+6.8%) and recreational (+3.6%) land, due to the robust demand in home sales especially in the suburbs and for vacation homes and the acceleration in e-commerce sales.

As for the 2021 outlook, respondents expect an increase in land sales and land prices for all types of land, except for sales of land for office, retail, and hotel use. Respondents expect the strongest sales growth in sales of residential land (5.9%) with prices rising on average by 5%. Sales of timber land are also expected to remain flat. Respondents expect the strongest price growth for industrial and recreational land, each growing at 3% in 2021.

Click here to view and download the full 2020 Land Market Survey. 

RLI’s 2021 National President, Renee Harvey, ALC, stated, “The land market saw incredible growth in the face of unprecedented challenges in 2020. As the only commercial asset with positive growth during the COVID-19 pandemic, land continues to be a sound investment.”

Lawrence Yun, PhD, Chief Economist and Senior Vice-President, Research for the National Association of REALTORS®, stated, “The acute housing shortage facing the country means the continued need to build more homes. The very first step requires land acquisition. Therefore, I expect the land market to continue to show robust growth this year. In addition the acceleration of e-commerce will be another major force that will continue to drive the demand for land for new warehouses and distribution centers.”

The annual Land Market Survey is a tool for landowners and land real estate professionals in all sectors of the business to use for bench-marking and as an informational resource when conducting business. This year marks the seventh consecutive year that the survey has been conducted to reveal current trends and the ever-changing state of land markets within the industry.

Click here to view and download the full 2020 Land Market Survey. 

97 replies
  1. pc version
    pc version says:

    It is clear that land continues to be a solid investment as the primary business resource with positive growth during the COVID-19 epidemic. Thank you very much for sharing.

    Reply
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    Martinser says:

    Essay writing services have been in great demand amongst students who desire good grades. The companies offering such services guarantee best cv writers uk with domain knowledge and expertise. However, students tend to get confused when selecting such services because every company claims to be the best.

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  3. elevateexpress.com
    elevateexpress.com says:

    Residential and recreational land reported the strongest price increases, driven by high demand for suburban homes and vacation properties, as well as the surge in e-commerce sales. Overall, the survey serves as a valuable benchmarking tool for landowners and real estate professionals, providing insights into the evolving trends and dynamics of land markets.

    Reply
  4. Pressure Washing Townsville
    Pressure Washing Townsville says:

    The survey’s findings highlight the resilience of land as a commercial asset amidst the challenges of 2020. Despite economic uncertainties, its positive growth underscores its enduring value and stability in investment portfolios. Land remains a solid foundation for long-term prosperity and growth

    Reply

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