Acre Cost Texas: Current Prices and Buying Tips

Thinking about buying an acre in Texas? You’re not alone. Whether you want a ranch, a plot for a home, or just an investment, knowing the real cost per acre helps you avoid surprises. In 2024‑25 the average price sits around $5,000 to $7,000 per acre, but that number jumps or drops depending on where you look.

Where Prices Vary Most

West Texas, especially the Permian Basin, can push prices above $10,000 per acre because of oil royalties and water rights. In contrast, the Panhandle and some parts of North Texas hover near $3,000 per acre, thanks to flat terrain and less demand. Hill Country around Austin and San Antonio often lands in the $8,000‑$12,000 range, driven by scenic views and proximity to cities.

Don’t forget the Gulf Coast. Coastal acreage, especially near Houston, commands higher prices due to industrial development and flood‑zone considerations. If your budget is tight, look at counties like Lubbock, Midland, or parts of East Texas where farmers still find land for under $4,000 per acre.

What Drives the Cost?

Location is the obvious factor, but water rights, soil quality, and zoning can add big chunks to the price tag. An acre with a well or direct access to a river can cost 20‑30% more. Soil that supports cash crops like cotton or wheat also bumps the price, while rocky or brush‑covered land stays cheaper.

Zoning matters too. Land zoned for agricultural use is usually cheaper than land earmarked for residential or commercial development. Check the county’s master plan before you sign anything – a mis‑zoned parcel can waste your money.

Improvement level is another hidden cost. An acre with existing fencing, roads, or a barn may be pricier upfront, but it saves you time and money later. Conversely, raw land lets you negotiate a lower price if you’re ready to invest in infrastructure yourself.

Market trends also play a role. Texas saw a mild price increase of about 4% last year as more people moved from expensive coastal cities. If interest rates stay steady, demand could keep nudging prices up, especially in fast‑growing metro outskirts.

So, how do you make sure you pay a fair price? Start by pulling recent sales data from the county assessor’s website – look at at least three comparable properties (the “comps”). Adjust those numbers for differences in water access, soil, and improvements. If a lot feels pricey, ask the seller for a breakdown of the added value.

Financing is another piece of the puzzle. Many lenders treat raw land differently from a home loan, often requiring a larger down payment and a higher interest rate. Shop around for agricultural lenders or credit unions that specialize in rural property – they can offer better terms if you plan to farm the land.

Finally, work with a local real‑estate agent who knows Texas land. An agent can spot red flags, like unresolved water rights or a pending zoning change, before you get stuck. They also have relationships with surveyors and title companies that keep the process smooth.

Bottom line: the price per acre in Texas isn’t a one‑size‑fits‑all number. Look at location, water, soil, zoning, and improvements, and compare several recent sales. With solid research and the right help, you can find an acre that fits your budget and your goals.