Land value per acre can vary in different regions due to basic supply and demand pressures, even when the differing plots are similar in nature. The greater the demand for land in a region, the higher the average price per acre. Similarly, a large supply of desirable land in a region drives down prices.Continue Reading
The level of demand for a particular acre of land is based primarily on the quality of that land. For example, fertile land is highly in demand if it is usable for farmland. When the desire is to use the land for commercial interests, demand is often driven by the location of the land. Zoning restrictions can drop demand, as can the surrounding neighborhood. Factors such as present or nearby roads, electricity or population centers can also affect the demand for a plot of land.
The supply of usable land is also an important determinant of how a specific acre of land is priced in differing regions. A farming area that has suffered from drought may have a restrictive supply of arable land available, whereas a region with plenty of rainfall may find itself with a large supply of desirable land. What makes an acre of land useful for one purpose does not necessarily make it useful for other purposes, which means that the same plot of land may change in value based on the use goals of the buyer.Learn more about Real Estate