Why Buy A Home On Acreage?
If you are in the market to buy a home, there are numerous reasons to consider one with more than just a subdivided lot below it. The first reason that comes to mind is privacy, as you will likely live in an area where homes have significant separation from each other. Wouldn’t it be nice to know that you can’t see or hear your neighbors’ daily activities?
Additionally, if you buy in the right area, you might be able to have horses or other animals on your property. You could plant large gardens, install a pool or tennis court, build a small or large pond for fish and wildlife, and most likely be able to add-on to your home without too many hassles.
How Many Homes On Acreage Are Selling?
When we look at the market for homes on acreage, we find one that has grown differently than those homes that sold on subdivided smaller lots. The graph below plots all homes sold on acreage during the first eight months of each year from 2004 through 2019.
The past five years have seen homes on acreage sell more often than they did even during the large housing expansion from 2004 through 2006.
How Are Homes On Acreage Valued?
If you own a home on acreage, you can see how values have moved for you over the past fifteen years.
Much like homes not on acreage, values have been steadily climbing over the past seven years. In 2019, the average value of all homes sold and closed in the Tallahassee MLS has been $127 per square foot.
Homes on smaller than an acre have averaged $125 per square foot, while homes on more than an acre have averaged $144 per square foot. This goes to show that acreage does impact the value of the property, but perhaps not as significantly as the underlying cost of the land.