3 Reasons Why Vacant Land in Florida Might Be the Next Best Investment You MakeThere’s a saying you may have heard about real estate that goes, “Don’t wait to buy real estate, buy
3 Reasons Why Vacant Land Might Be The Next Best Investment You Make
Dated: October 4 2022
3 Reasons Why Vacant Land in Florida Might Be the Next Best Investment You Make
There’s a saying you may have heard about real estate that goes, “Don’t wait to buy real estate, buy real estate and wait.” Most property owners will agree with this statement and while you may be thinking about housing and commercial buildings, it’s absolutely true for VACANT LAND in Florida as well. Over the past 10 years, not only has land become a hot commodity in our state, but when we look even closer at the land trends in Pinellas County (the 2nd smallest county in Florida), we see that the demand for buildable land has continued to grow. In fact, the demand for land has become more competitive than ever, especially if we’re talking about acreage that could accommodate multiple homes in a market where there is a shortage of housing.
We pulled some important stats about land values in Pinellas County below that every property owner should know about. Keep reading to find out what the price and sales trends for land are telling us about this important asset you might already own or be thinking about adding to your real estate portfolio:
The Price for Land Continues to Grow
As demand for housing has exploded in the Pinellas County real estate market, so has the demand for land to build homes on. In the chart below, we tracked the average sale price trends since 2012 for land sold in Pinellas County. Since 2012, the average sale price of vacant land has increased +224%.
Even just year over year (September 2022 vs September 2021) land prices grew +29%.
Land is Selling Faster Than Ever
Historically, land often takes longer to sell than single-family homes, condos, and properties with existing structures. When buying land to build on, several steps must be taken prior to closing to make sure the land is suitable for building. Some of these steps include multiple surveys, checking building codes for setbacks, finding out what utilities are currently on the land or available to add, confirming the zoning usage, and more. Closing timeframes and due diligence periods are historically longer for these reasons. However, over the past few years, the land market has transitioned to a strong seller’s market, meaning many sellers are less flexible with longer closing times than they would have been in years past, pushing some of the risk to buyers.
Below, we looked at the average days on market vacant land properties accumulated once listed (this is the timeframe between listing a property for sale and getting it under contract). In September 2012, the average days on market for a vacant land listing was 277 days. In September 2022, that number declined to just 60 days.
The Number of Land Listings Continues to Decline
If there’s one thing we can’t make more of, it’s land. As land across the state is being built up, the number of listings for vacant land will continue to decline over the long run. Below you can see how the number of vacant land listings has declined over the past decade as well. This decline, combined with demand for more housing is the perfect storm to make land an excellent long-term investment. Since September 2012, the number of vacant land listings in Pinellas County has declined -52%. While there are noticeable increases and declines on the chart, the over trend is downward. Even year over year, we see that the number of land listings declined -26% compared to September 2021.
With the above information in mind, vacant land may be an excellent type of property to add to your real estate portfolio. Like any investment, it’s important to consider carrying costs and long-term goals before you buy land. However, our opinion remains that this is an excellent long-term asset to hold in the right real estate portfolio.
If you’re thinking about buying or selling land in the Tampa Bay area, our real estate team is always happy to provide expert advice to make sure you meet all your real estate investing goals when it comes time to buy or sell. With over 35 years of local expertise in the Pinellas County real estate market, The Sandy Hartmann Group has brokered millions of dollars in residential, commercial and industrial land.
To see a list of the LATEST vacant land properties for sale in Pinellas County
You can also call or text us at (727) 400-3315 to find out more or send us a message directly with all your questions.
Andrea is the Managing Partner of The Sandy Hartmann Group and runs the team alongside Sandy Hartmann. She would love to talk to you about real estate! Andrea was born and raised in the Tampa Bay a....
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