North Carolina's land market provides diverse geography, which leads to significant variations in prices and demand across the state. The median price per acre in North Carolina is $20,349, ranking it the 13th most affordable state for buying land in the US. However, prices can vary widely between different regions.
The state's affordability is influenced by factors like the mix of urban and rural areas. Certain regions experience lower land prices due to limited accessibility, less desirable terrain, or lower demand compared to highly sought-after locations. For example, land in the mountains of western North Carolina or the coastal Outer Banks region may command higher prices than rural areas in the central part of the state.
Demand also differs by region, with areas near major cities like Charlotte and Raleigh seeing more competition for land suitable for residential and commercial development. Meanwhile, demand in rural areas may be driven more by agricultural use, outdoor recreation, or buyers seeking privacy and seclusion.
Identifying Hot Spots for North Carolina Land Investment
To identify the best opportunities for land investment in North Carolina, it's essential to look at pricing trends and growth indicators in different markets around the state. Some areas to watch include:
- The Research Triangle: The Raleigh-Durham area, home to major universities and a thriving tech scene, has seen steady population and economic growth, driving demand for housing and commercial development.
- Charlotte Metro: Charlotte has been one of the fastest-growing cities in the country, fueling demand for land in surrounding suburban areas and the urban core.
- Coastal Communities: While prices may be higher, land in beach towns and barrier island communities can be attractive for vacation home development or as an investment to hold and resell.
- Mountain Towns: Places like Asheville and Boone have become increasingly popular for retirees and second-home buyers, leading to rising land prices but also potential for appreciation.
By examining market data and trends, investors can identify the parts of North Carolina that offer the best mix of affordability, demand, and growth potential for their specific land investment strategies.
Which North Carolina Counties Have the Hottest and Coldest Land Sale Volumes?
We pulled some data from Redfin, which collects county land sale records and classified the counties based on turnover, average time on the market, and other useful metrics. First, let's look at the counties that scored in the top 15 and bottom 15.
County Scoring
These scores combine sell-through rates, time on the market, and turnover. They are essential because they give you a quick snapshot of how hot (or not) the market is in each county.
Top 15 Counties by Shortest vs Longest Time on the Market
This graph is about how quickly (or slowly) vacant land sells in different counties across North Carolina. On one side, you've got the counties where land gets snatched up the quickest; on the other, you've got the counties where land tends to sit on the market for a while. Reviewing this type of data can help you avoid buying land that's not a good deal.
Average turnover %
Finally, this graph rates counties by their average turnover. Higher the score the better. Let's look deeper into the makeup of land buyers in North Carolina.
North Carolina Land Buyer Profiles and Preferences
Not all land buyers are the same, so understanding the different types of people interested in North Carolina land is key to effective marketing and sales. Some key buyer segments include:
- Retirees and Second-Home Buyers: Retirees and second-home buyers are typically in the 55+ age range, with higher disposable incomes and net worth than the general population. Many are from the Northeast, Midwest, and Florida, seeking a milder climate and lower cost of living. They value a relaxed lifestyle, access to healthcare, and a sense of community. Amenities like gated developments, golf courses, and proximity to cultural attractions appeal to this group.
- Outdoor Enthusiasts: Outdoor enthusiasts, from millennials to baby boomers, span a wider age range but share a passion for nature and recreation. They often have middle to high incomes and are willing to invest in land for personal enjoyment. Hunters, in particular, skew heavily male and highly value wildlife conservation and land stewardship. They are drawn to properties with diverse habitats, water features, and proximity to public lands or game reserves.
- Farmers and Ranchers: Farmers and ranchers are often younger, with a mix of established agricultural families and first-generation farmers. They are hardworking, self-reliant, and focused on the long-term productivity and sustainability of the land. They prioritize soil quality, water rights, and access to markets and agricultural infrastructure. Many are interested in smaller acreage properties suitable for specialty crops, livestock, or agritourism ventures.
- Developers and Investors: Developers and investors are typically experienced real estate professionals with a higher risk tolerance and longer investment horizons. They are analytical and data-driven, closely tracking market trends, zoning changes, and economic indicators. They are attracted to properties with good access, utilities, and development potential in high-growth areas like the Research Triangle, Charlotte, and coastal or mountain resort destinations.
Each of these groups has different priorities and preferences regarding factors like location, acreage, terrain, amenities, and price point. Understanding these nuances is essential for crafting relevant marketing messages and matching properties to the right buyers.
Tailoring Marketing Strategies to Target Audiences
Once key buyer segments have been identified, the next step is developing targeted marketing approaches to reach and resonate with each group. Some strategies to consider include:
- Retirees and Second-Home Buyers: Highlight the lifestyle benefits of owning North Carolina land, such as access to outdoor recreation, proximity to cultural attractions, and friendly communities. Use targeted digital advertising and partnerships with retirement and travel publications to reach this audience.
- Outdoor Enthusiasts: Emphasize the unique natural features and wildlife habitats found on different properties and nearby hunting, fishing, hiking, and camping opportunities. Advertise in outdoor sports magazines and on relevant websites and forums.
- Farmers and Ranchers: Focus on soil quality, water access, and agricultural zoning and infrastructure. Partner with local farm bureaus and agricultural organizations to connect with potential buyers.
- Developers and Investors: Provide detailed data on zoning, utilities, access, and market trends for each property. Attend industry events and advertise in publications by real estate investors and developers.
The key is to tailor both the message and the medium to align with each target audience's interests, goals, and communication preferences. By segmenting buyers and customizing their marketing, land investors can more efficiently and effectively connect with the right prospects.
Competitive Landscape of the NC Land Market
Major Players and Market Share Analysis
The North Carolina land market is fragmented, with many local and regional investors and brokers serving different parts of the state. However, there are some more prominent players that have a significant market presence, including:
- Mossy Oak Properties: This national rural land brokerage franchise has multiple offices across North Carolina and focuses on hunting ranching, and conservation properties.
- Atkinson Realty: One of the largest brokers of undeveloped land in eastern North Carolina, with a 50-year history and extensive acreage listings.
- Carolina Mountain Sales: A leading brokerage specializing in western North Carolina mountain land, with a team of experienced local agents.
- Unique Places LLC: A land investment and development company with holdings across the state, focused on residential, commercial, and conservation projects.
While these firms have a sizable market share, smaller investors and brokers who can offer specialized local expertise, targeted marketing, and creative deal structures still have many opportunities.
Differentiating Your Land Investment Business
Land investors need to find ways to differentiate their properties and overall business to stand out in a competitive market. Some potential strategies include:
- Specialization: Focus on a specific type of land, such as agricultural, recreational, or development, and become known as an expert in that niche.
- Value-Added Services: Offer buyer resources like land surveys, soil tests, permit assistance, or contractor referrals to simplify the purchase and development process.
- Conservation and Sustainability: Highlight your properties' environmental features and implement sustainable land management practices to appeal to eco-conscious buyers.
- Innovative Marketing: Use engaging visual content, virtual tours, and targeted digital advertising to showcase your properties and reach potential buyers where they are searching online.
- Flexible Financing: Offer seller financing, lease-to-own, or other creative deal structures to make your properties accessible to a broader range of buyers.
By differentiating your land investment business, you can attract more potential buyers, command higher prices, and build a strong brand reputation in your market.
Strategies for Staying Ahead of the Competition
In addition to differentiation, there are several other ways land investors can position themselves for success in a competitive market:
- Stay Educated: Continuously monitor market trends, zoning changes, infrastructure projects, and other factors that could impact land values and demand in your target areas.
- Build Relationships: Network with local real estate agents, developers, land use attorneys, and other professionals who can provide valuable insights and referrals.
- Be Patient: Land investments often require a longer time horizon than other real estate strategies. Be prepared to hold properties for multiple years while waiting for the right buyer or development opportunity.
- Have Multiple Exit Strategies: Diversify your options by investing in land with multiple potential uses, such as subdividing the land, and being open to selling to different buyers depending on market conditions.
- Provide Exceptional Service: Focus on creating a positive buying experience for every customer with responsive communication, helpful resources, and a smooth closing process. This can lead to referrals and repeat business down the road.
Land investors can build a strong foundation for long-term success in the North Carolina market by staying informed, adaptable, and customer-focused.
The North Carolina land market offers diverse opportunities for investors who take the time to understand the nuances of different geographic regions and buyer segments.
Zoning, Land Use Regulations, and Permitting Processes
Zoning and land use regulations are crucial in determining the development potential of vacant land in North Carolina. Each county and municipality has zoning ordinances that dictate allowed uses, density, setbacks, and other development standards. Some key zoning classifications to consider include:
- Agricultural (AG): Allows for farming, ranching, and low-density residential development. Minimum lot sizes can range from 1 to 10 acres or more.
- Residential (R): This zone permits single-family homes with varying densities based on the specific zoning district (e.g., R-1, R-2, etc.). Some residential zones may also allow for limited agricultural uses.
- Mixed-Use (MU): This zone combines residential, commercial, and sometimes light industrial uses within a single development. This zoning is becoming more common in urban and suburban areas.
- Commercial (C): This zone allows retail, office, and service businesses. Some commercial zones may also permit higher-density residential development.
- Industrial (I): This category accommodates manufacturing, warehousing, and distribution facilities. Light industrial zones may impact surrounding properties less than heavy industrial areas.
In addition to zoning, land development is subject to various local, state, and federal regulations related to environmental protection, stormwater management, and building codes. Navigating the permitting process can be complex, often requiring site plans, land surveys, environmental assessments, perc tests, and public hearings.
Economic Drivers, Population Growth, and Infrastructure Investments
North Carolina's strong economic fundamentals and population growth are key drivers of demand for vacant land across the state. The state's diverse economy, anchored by thriving sectors like technology, healthcare, finance, and advanced manufacturing, continues to attract businesses and talent from around the country.
According to recent projections from the North Carolina Office of State Budget and Management, the state's population is expected to reach 14.0 million by 2050, an increase of 3.5 million people from 2021. This growth will be fueled primarily by net migration, as more people move to North Carolina than leave the state.
Significant infrastructure investments are underway or planned across the state to accommodate this growth. Some notable projects include:
- Transportation - Major highway expansions, such as the I-540 outer loop around Raleigh and the I-485 express lanes in Charlotte, are improving connectivity and reducing congestion. The state is also investing in rail and public transit enhancements.
- Utilities - Municipalities and utility providers are upgrading water, sewer, and electrical infrastructure to serve growing communities. Renewable energy projects, like solar farms and wind turbines, are also expanding.
- Education - New schools, community colleges, and university facilities are being built to meet the needs of a growing population. These institutions also serve as economic anchors and workforce development engines.
- Healthcare - Hospital systems and medical providers are expanding their footprints, with new clinics, outpatient centers, and research facilities in the works.
These infrastructure investments, coupled with substantial population and economic growth, create new land development opportunities across the state. Investors should monitor these trends and target properties well-positioned to benefit from ongoing growth and development patterns.
By understanding the regulatory landscape, economic drivers, and infrastructure initiatives shaping North Carolina's land market, investors can make more informed decisions and capitalize on the state's dynamic growth prospects.
