Thinking about purchasing some American soil, but not sure whether this is the right time to invest in US land? There are a lot of fantastic investment opportunities in the land market right now. Let’s take a look at some reasons to think about moving forward with your land acquisition.
- Demand for land is rising, but supply is capped.
First of all … land is land. There are 3.7 million square miles of it in the US, and that isn’t going to change. Meanwhile, with growing residential and commercial needs, demand will just keep on rising. The sooner you buy, the more you can potentially profit from that growing gap between supply and demand.
- Consumer confidence keeps growing.
Consumer confidence was indexed in January 2012 at 37.4, and at 127.4 in July 2018. It continues to rise today thanks to lower unemployment, higher wages and corporate earnings, declining interest rates, and other key factors. The price of lumber is reasonable, and the construction industry is enjoying a heyday.
- This is a buyer’s market for agricultural land.
54% of land in the United States is used for raising crops and livestock. Yet despite how critical this industry is to the GDP of the country (worth around $985 billion, and providing more than 23 million Americans with work), agricultural land right now is surprisingly affordable. This reflects the condition of commodity markets around the world.
How affordable?
- Between 2016 and 2017, the value of cropland stayed fixed at $4,090 per acre.
- Meanwhile, pasture value climbed 1.5 percent, equivalent to a gain of $20 per acre.
- As to farm real estate, that climbed 2.3% ($70 per acre) from 2016 to reach $3,080 per acre in 2017.
When shopping for agricultural land, you need to put some thought into what will be raised there. Solid investments these days include:
- Cotton
- Soybeans
- Corn
- Wheat
- Poultry
- Swine
- Other livestock
With the costs for animal feed and energy dropping and economies strengthening around the globe, it makes sense that agricultural land will continue to hold a stable value in the years ahead. There are also developers who want to get their hands on this type of land in order to construct housing at a time of steep shortages.
Conclusion: Economic Factors are Conspiring to Make US Land a Competitive Investment
With today’s rising demand for land fueled by low interest rates, strong consumer confidence, and a growing need for land for agricultural and residential use, this is a prime opportunity to get in on a solid investment. So consider purchasing your own piece of American soil and taking advantage of today’s low prices and tomorrow’s great potential.
