Signs of an Up-and-Coming Land Market

If you want to make a great land investment, sometimes you have to look beyond the proven markets. 

Up-and-coming land markets are areas where investment and demand are growing, but land prices haven’t quite caught up. The result is low-priced properties with a lot of profit potential, especially if you plan to stick around for a while. 

So, how do you spot one? Read on for the six tell-tale signs of an emerging land market, plus helpful tips for deciding whether you should take the plunge. 

What is an Up-and-Coming Land Market?

In real estate, an up-and-coming market is one that’s right on the cusp of popularity but not quite there yet. Also known as transitional markets, these areas offer a lot of promise for savvy investors, though they do come with a bit of risk too. 

You’ll usually find transitional land markets on the edge of established ones. As more people get priced out of area hot spots, infrastructure and interest start to spread, opening up new potential for investors and a lower barrier of entry to first-time land buyers. The trick is to get in early, when properties are still undervalued and you can snag a truly stellar deal with the promise of a quick return. 

Of course, if you’re a land buyer looking to purchase property in an underdeveloped-but-likely-to-explode market, you’re probably not the only one. By knowing the signs of an up-and-coming land market, you can get ahead of the crowds and increase your chances of a low price, maximum acreage, and an overall smart buy. 

6 Signs a Land Market is About to Get Popular

A good intuition and a bit of luck will take you far in land real estate. Beyond that, here are the signs you should be looking for when trying to find an up-and-coming market to buy in:

• Growing commercial and residential interest
• More people are moving to the area
• New transportation and connective infrastructure
• Updates in zoning and land use regulations
• Land prices are rising, and properties are spending less time on the market
• Positive economic forecasts

1. Growing Commercial and Residential Interest

Increased construction and development – both residential and commercial – is one of the first signs of an up-and-coming land market. That’s because both are indicators of the sorts of things that are required for a burgeoning market, including more interest, more investment, and more confidence in the local economy. 

For the best return, you’ll usually want to get in when these large-scale development projects are in the works, rather than completed. That being said, if you see development start to pick up in a previously overlooked area, you can usually still buy cheap land if you get in sooner than later. 

2. More People Moving to the Area

If you’re in the market for peace and privacy, then a growing population might not be top of the list of things to look for. However, population growth – particularly more families and young people coming to the area – suggests that a market is primed for other sorts of growth, too. That’s a good sign if you want to buy cheap and sell fast, as well as if you’re buying land in the hopes of one day building a home and community. 

3. New Transportation and Connective Infrastructure

Investments in transportation, such as new bus lines or airports, let you know that there’s an uptick in an area’s desirability. The same goes for connective infrastructure – i.e., existing highways or train lines being extended into the area. These may precede market growth or come as a direct response to it, but in either case, they’re a clear sign that the area is on its way to becoming more established. 

4. Updates in Zoning and Land Use Regulations

When municipalities are trying to attract more buyers to an area, they often update zoning and land use regulations to facilitate increased density and investment. You may see relaxed regulations on vacant land for sale, or more parcels allotted for commercial or residential development. And if you get in early, you may score some favorable incentives as well, like expedited permitting and reduced impact fees. 

5. Land Prices Rising and Properties Spending Less Time on the Market

One of the most obvious signs of an up-and-coming land market is rising prices on land and properties selling sooner rather than later – generally within six months to a year of being listed. The higher the prices go compared to historical averages, and the faster the properties sell, the more traditional the market. So, act fast and don’t miss the sweet spot in an emerging market when land is still affordable and easy to find. 

6. Positive Economic Forecasts

There is no magic 8-ball for predicting that a land market is about to boom. But some experts make it their mission to accurately assess economic forecasts and let you know what areas are about to explode and when. Follow local economic experts in the news and on social media to ensure you’re one of the first to know if they perceive economic growth and stability coming to a previously underestimated market. 

Is It Time to Buy? 

When it comes to buying land in an up-and-coming market, you don’t want to jump the gun, but you also don’t want to wait too long. All investments require risk, but you can help mitigate that by following these helpful bits of advice:

• Work with an experienced land broker: They’re usually one of the first to know if an area is on the verge of new development. 
• Consider proximity: It’s a plus if an area is near to existing communities, roadways, and services. 
• Go visit: Look for things like well-maintained properties and an established downtown, even if there's a lot of growth potential yet to be met. 

Your perfect property could be waiting for you where you least expect it. Start the search today on LandHub, or use our site to connect with a qualified land broker in your area.