The Case For Land

Today, land is considered a highly appealing investment option in the United States as well as globally. Factors such as rapid population growth, urban development, changes in leisure activities, better transportation, increased mobility, economic growth, and ongoing urbanization contribute to the case that land will continue to rise in value.

The pressures that have affected land values in the past will continue to increase in the future. The population of the United States, currently around 360 million, is expected to reach 450 million by 2050. The world population is also expected to almost double during this time. Despite the rapid increase in population, the amount of land available remains fixed and limited. Currently, the mainland United States has about 1.9 billion acres of land (excluding Alaska and Hawaii). A century ago, this equated to 48 acres per person; today it’s about 4 acres per person and is projected to decrease to about 1 acre per person by 2050, based on current projections. The impact of these trends on land values is clear.

While the total land area in the United States remains consistent, there is a constant evolution in land use. Urban areas are expanding at a rate of approximately 10 to 15% annually, making them a lucrative option for land investors. Interestingly, urban land makes up less than 2% of the country’s total land area. 

Approximately 75% of the population growth in the United States over the last ten years has happened in urban areas. Research shows that by 2050, the largest cities in the country will nearly double in size. As a result, the greatest land value shifts are expected to take place in the suburban regions surrounding these urban centers.