What Is Happening in the South Texas Land Market in 2026?

By James Peterson ALC | UC Ranch Properties
South Texas Land and Ranch Real Estate Specialist

The South Texas land market entered 2026 with stronger sales activity, more acres changing hands, and a modest increase in the regional price per acre.

According to the Texas Real Estate Research Center’s first-quarter 2026 report, the annualized price for rural land in its South Texas region rose 4.76% year over year to $6,277 per acre. Sales increased almost 27%, while the number of acres sold climbed nearly 40%.

That’s encouraging news for South Texas landowners.

But it doesn’t mean every ranch, farm, hunting property, or rural homesite is worth $6,277 per acre. That number is a regional market indicator. The value of a specific property still depends on its location, acreage, water, access, improvements, land use, and many other details.

I’m James Peterson ALC, with UC Ranch Properties. I am based in Floresville, Texas, and I’ve spent 30 years helping landowners, buyers, and sellers navigate real estate throughout South Texas.

Here’s what the latest report tells us and how buyers and sellers should use the information.

The Texas Real Estate Research Center reported the following annualized figures for its South Texas region:

The Texas Real Estate Research Center's first-quarter 2026 report highlights strong momentum across the South Texas rural land market. The annualized average price per acre reached $6,277, a 4.76% increase from the previous year. Market activity also accelerated, with 403 reported sales, up 26.73% year over year. Buyers purchased a combined 31,856 acres, representing a 39.95% increase, while total sales volume climbed to nearly $200 million, a significant 46.61% gain. The average tract size also increased to 298 acres, up 4.19% from the first quarter of 2025. Together, these figures indicate a healthy market with rising land values, increased buyer activity, and larger properties changing hands.

Most of the price and sales gains came from tracts between 45 and 90 acres. The report also noted that prices in this size category were still below the records reached in 2022.

The increase in price matters, but the rise in sales, total acreage, and dollar volume may tell us more about the current direction of the market.

More properties are changing hands.

Buyers are participating.

And South Texas land is moving at a stronger pace than it did during the slower years of 2023 and 2024.

The $6,277 figure is not a simple average of every South Texas land sale completed during the first three months of 2026.

The Research Center uses annualized, four-quarter moving figures. Its reported price per acre is based on moving median prices and is divided into property-size categories. This method is meant to reduce the effect of short-term swings and provide a clearer picture of the overall market direction.

The report is also based on a sample of verified transactions. It does not include every land sale, and it combines properties with different uses, conditions, locations, and features.

That distinction matters.

A buyer shouldn’t look at a 60-acre property, multiply 60 by $6,277, and assume that’s the property’s market value.

A seller shouldn’t do that either.

The report itself warns that these figures are general indicators of past market conditions. They aren’t an appraisal or a replacement for a local market study based on comparable sales.

Statewide, Texas rural land prices rose 6.02% to $5,246 per acre. Statewide sales activity increased 5.45%, but total acres sold declined 8.06%, and total dollar volume fell 2.52%.

South Texas showed a different pattern.

Our regional price increase was smaller than the statewide percentage increase, but South Texas experienced much stronger growth in:

• The number of completed sales
• The number of acres sold
• Total dollar volume

That tells me the South Texas market wasn’t simply holding its price. It was also seeing a meaningful improvement in transaction activity.

That’s a healthier sign than looking at price per acre alone.

The Research Center also notes that total dollar volume and total acres sold can sometimes provide a better indication of market health than price changes by themselves.

The report found that most of the gains in South Texas came from properties between 45 and 90 acres.

It doesn’t give one specific reason for that increase. In my experience, though, this acreage range can appeal to several types of South Texas buyers.

A tract of this size may work for someone looking for:

• A country home with room for livestock
• A weekend or recreational property
• A smaller hunting place
• A family property outside the city
• A manageable cattle or agricultural operation
• A long-term land investment
• Space to build while keeping some privacy

Smaller acreage can also open the market to buyers who don’t need or can’t justify several hundred acres.

That doesn’t mean every 45-to-90-acre property will sell quickly. Buyers still pay close attention to usable land, road access, water, electricity, improvements, restrictions, and location.

A well-located 60-acre tract with good access and useful improvements is a very different property from 60 acres with limited access, no utilities, and a large amount of unusable terrain.

The acreage count may be the same. The market value may not be close.

The stronger sales numbers suggest that buyers are returning to the South Texas land market, especially for desirable smaller and midsized tracts.

That doesn’t mean you should rush into a purchase.

It means you should be prepared when the right property becomes available.

Start with the purpose of the property

Before you look at listings, decide what you need the land to do.

Are you buying for:

• Hunting or recreation?
• Cattle or agricultural use?
• A primary residence?
• A weekend property?
• Future development?
• A long-term family investment?

A property can look beautiful and still be wrong for your intended use.

Compare similar properties

A 50-acre tract near Floresville shouldn’t automatically be compared with a remote 500-acre ranch farther south.

The best comparable sales usually share several characteristics:

• Similar acreage
• Similar location
• Similar road access
• Similar water sources
• Similar improvements
• Similar land use
• Similar development or recreational potential

The regional report gives you context. Local comparable sales help you make a purchasing decision.

Look beyond the price per acre

Price per acre is useful, but it’s only one part of the decision.

Buyers should also examine:

• Legal and physical access
• Water wells, stock tanks, creeks, or other water sources
• Electricity and utility availability
• Fencing and cross-fencing
• Homes, barns, shops, pens, and other improvements
• Soil, vegetation, topography, and drainage
• Easements and restrictions
• Survey and boundary information
• Mineral and surface rights
• Ongoing maintenance and ownership costs

Questions involving title, minerals, taxes, environmental concerns, or legal rights should also be reviewed with the appropriate qualified professionals.

For sellers, higher sales activity is good news.

There are more transactions taking place, and more acres are moving through the market. But stronger regional numbers don’t guarantee that a property will sell at any asking price.

Buyers are still careful.

They compare properties. They look at the cost of financing, improvements, repairs, fencing, water systems, and ongoing maintenance.

The properties that stand out are usually the ones that are priced correctly and clearly presented.

Don’t price your land using one regional number

Multiplying your acreage by $6,277 may give you a rough regional reference point, but it won’t produce a reliable listing price.

Your property may be worth more than that figure.

It may also be worth less.

A useful market review should consider:

• Recent nearby sales
• Tract size
• Road frontage and access
• Location and driving distance
• Water and utilities
• Existing improvements
• Agricultural and recreational use
• Development potential
• Current competing listings

Gather your property information early

Before going to market, organize the information a serious land buyer will want to review.

That may include:

• Existing survey
• Legal description
• Improvement list
• Well information
• Utility providers
• Agricultural history
• Current leases
• Easements
• Restrictions
• Tax information
• Mineral information available to the owner
• Maps and quality property photography

Having this ready can reduce confusion and make it easier for qualified buyers to understand the property.

Don’t stay anchored to the peak market

The report notes that some sellers remain attached to peak 2022 and 2023 pricing. That can create a gap between what sellers expect and what current buyers are willing to pay.

South Texas activity has improved, but the 45-to-90-acre segment still hasn’t returned to its 2022 price records.

That doesn’t mean sellers need to discount good land.

It means pricing should be based on what comparable buyers are doing today, not on the highest number someone heard several years ago.

Consider two hypothetical properties.

Property one: 60 acres near Floresville

This tract has paved road frontage, electricity, a working water well, good fencing, a small barn, and several attractive building sites.

It’s within a reasonable drive of San Antonio and could work for a country home, livestock, or recreation.

Because of its size, access, location, and improvements, this property could attract a broader group of buyers and sell above the regional price-per-acre indicator.

Property two: 600 acres farther south

This ranch offers privacy and excellent recreational potential, but it has limited access, few improvements, and water questions that need further review.

The total sale price would be much higher because of the acreage, but the price per acre could be lower than the smaller tract.

The buyer pool may also be smaller.

Neither property is necessarily better.

They simply serve different buyers and need to be valued using different comparable sales.

That’s why broad land market reports are useful for understanding direction, but they can’t replace a property-specific evaluation.

Treating a regional number as an appraisal

The $6,277 figure describes a regional trend. It does not establish the value of an individual property.

Comparing tracts of very different sizes

Smaller properties often sell at a different price per acre than large ranches. Compare similar acreage whenever possible.

Ignoring the property’s intended use

Land that works well for cattle may not work well for development, hunting, or a residential homesite.

Overlooking water and access

A beautiful property can lose much of its usefulness if access is uncertain or water is inadequate.

Pricing from an old market peak

What a similar property sold for during the strongest part of the post-pandemic land market may not reflect what buyers will pay now.

Focusing only on price per acre

Improvements, location, water, access, utilities, shape, topography, and usable acreage can all change the final value.

The Research Center describes the broader Texas rural land market as healthy and stable, although transaction volume remains well below pre-COVID levels.

Prices have been more resilient than earlier forecasts predicted. At the same time, the market still faces pressure from interest rates, the amount of price appreciation that occurred over the last five years, and general economic uncertainty.

The Center’s near-term statewide forecast calls for small price increases and a slight decline in the volume of acres sold. It also expects regional differences to remain a major part of the Texas land market.

For South Texas, the first-quarter numbers give us reason to be encouraged.

Price per acre increased.

Sales improved.

More acres changed hands.

Total dollar volume rose sharply.

Still, this is a selective market. Properties with the right combination of location, access, water, improvements, and pricing should be in a stronger position than properties that are overpriced or poorly prepared.

What was the reported South Texas land price in the first quarter of 2026?

The Texas Real Estate Research Center reported an annualized price of $6,277 per acre, up 4.76% year over year for its South Texas region. This is a regional indicator, not the value of every property.

Are South Texas land sales increasing?

Yes. Annualized sales increased 26.73% to 403 transactions, while total acres sold increased 39.95% to 31,856 acres.

What size South Texas properties showed the most improvement?

According to the report, most of the price and sales gains came from tracts between 45 and 90 acres.

Does the $6,277 figure tell me what my ranch is worth?

No. A property’s value depends on local comparable sales and features such as location, access, water, utilities, improvements, land use, and tract size.

Is 2026 a good time to sell South Texas land?

It may be a good time for owners of well-located and correctly priced properties. Sales activity has improved, but your decision should be based on your property, goals, timeline, and current local competition.

How do I determine the value of my South Texas land?

Start with a property-specific market review based on recent comparable sales. A land specialist should also consider acreage, improvements, water, access, utilities, restrictions, land use, and local buyer demand.

Regional reports give us the big picture.

Your property needs a closer look.

I’m James Peterson ALC, with UC Ranch Properties, a South Texas land and ranch real estate specialist based in Floresville, Texas. I help landowners, buyers, and sellers throughout South Texas, backed by 30 years of real estate experience.

Whether you’re considering selling a family ranch, buying recreational acreage, or trying to understand what your land may be worth, I’ll help you look at the numbers and the property itself.

James Peterson ALC
UC Ranch Properties
South Texas Land and Ranch Real Estate Specialist
Based in Floresville, Texas
TXRanchAndHome.com
TXLandTeam.com
210-740-1295

Questions about this on a property in Floresville? Texas Ranch & Home works rural homes and land across Wilson, Atascosa, Gonzales, Guadalupe and Karnes Counties. Call James Peterson ALC at (210) 740-1295 or Barbara Peterson at (210) 540-6487, or send us a message.

More from us: rural homes and land in Floresville · what your rural home is worth · all articles.