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Highlights:
- Land Sales rose 6% in 2021, surpassing the sales increase of other commercial real estate types
- The 2021 surveys about the land transactions of REALTORS® reveal a strong land market in 2021. Land sales rose on average by 6% in 2021, surpassing the sales growth of commercial real estate properties such as single-family rentals (5%), industrial (4%), and apartment buildings (2% for Class A and 3% for Class B/C).
- Residential land sales accounted for a higher share of residential real estate sales, at 4%. Residential land for the buyer to build on accounted for a higher share of residential sales, at 4% in 2021.
- As of 2021 Q4, the underlying value of the land of real estate owned by households totaled $15 trillion, up from $13 trillion in 2020 Q4. According to NAR's estimate, the land value accounts for 40% of household real estate assets based on Federal Reserve Board data on household real estate and the cost of structures (replacement value).
- Land prices rose at the second-strongest pace of 6% compared to other commercial real estate types. REALTORS® reported that, on average, land prices rose nearly 7% year-over-year during 2021, the second-highest pace of price growth after single-family rental properties which rose 7.5%.
- Land sales prices rose at a slightly higher pace than prices of industrial properties (6%) and multifamily apartments (5% for Class A and 6% for Class B/C). In contrast, prices for offices, hotels, or retail malls declined on average during 2021.
