
Is Buying Land a Good Investment? Expert Insights & Market Trends
The Short Answer: Yes, buying land can be an excellent investment for the right investor. Land offers unique advantages, including limited supply, potential for long-term appreciation, and protection against inflation. Success depends on careful planning, thorough research, and understanding both the benefits and challenges of land ownership.
Land ownership has quietly become one of the most discussed investment strategies in 2025. Unlike built properties, raw land doesn’t depreciate, offers unlimited customization potential, and serves as a reliable hedge against inflation. With current market conditions creating both opportunities and challenges, understanding whether land investment aligns with your financial goals requires understanding a few important factors.
Modern investors must weigh immediate capital requirements against long-term wealth building potential, evaluate different types of land investments, and understand local market dynamics. Whether you’re considering agricultural land, undeveloped property for future development, or recreational acreage, the fundamentals of successful land investment remain consistent across property types.
Why Land Investment Makes Sense in 2025
Land is a Finite Resource
The most compelling reason to consider land investment centers on scarcity. They simply aren’t making any more land, and as populations grow and urban areas expand, the limited supply naturally drives up value over time. This fundamental economic principle creates a built-in advantage for landowners willing to hold properties for long-term appreciation.
Current Market Trends Support Land Investment
The land market remains strong in 2025, with consumer confidence high and buyer activity increasing, especially following recent uncertainty. Several key trends are reshaping the investment landscape.
Remote Work Drives Rural Demand The work-from-home culture has shifted buyer preferences toward suburban and rural areas where land costs less and offers more space. This trend particularly benefits states like Nebraska, where quality land remains available at reasonable prices compared to coastal markets.
Technology Infrastructure Development Data centers for tech companies are creating new demand for rural land, especially properties near existing power stations and energy infrastructure. This development is opening opportunities for landowners in previously overlooked areas.
Limited Inventory Supports Prices Low inventories of quality rural land continue supporting land values throughout 2025. This scarcity benefits sellers and creates competitive markets for well-positioned properties.
Types of Land Investment in Nebraska
Agricultural Land
Nebraska’s agricultural heritage makes farmland a natural investment choice, though recent market data reveals important considerations. Nebraska agricultural land values declined by 2% in 2025 to an average of $3,935 per acre, marking the first decline in six years. Lower crop prices and higher interest rates have created financial pressure on farmers, but fundamentals remain strong.
Grazing Land
Despite recent price adjustments, grazing land values actually increased 1% to 5%, reflecting strength in the cattle market. Working capital remains relatively stable, and the state’s fertile soils and access to the Ogallala Aquifer continue supporting agricultural productivity.
Raw Land for Future Development
Raw land near growing communities offers excellent long-term investment potential. Focus on properties with road access and utility availability, proximity to urban areas experiencing growth, proper zoning for intended future use, and no environmental complications like flood zones.
Development Land
Land positioned for future residential or commercial development offers the highest appreciation potential but requires patience and local market knowledge. These properties typically produce little to no immediate income while waiting for growth, but can deliver substantial returns when development occurs. Success depends on timing, infrastructure access, proper zoning, and understanding local growth patterns. This investment works best for experienced investors with higher risk tolerance who can hold properties for extended periods without income.
Recreational Land
Rural properties perfect for hunting, fishing, or weekend retreats continue attracting buyers seeking work-life balance and outdoor activities. Nebraska offers some of the most diverse hunting opportunities in the nation, from upland game (like pheasants & quail) to big game (like mule deer & white-tailed deer).

Benefits of Land Investment
Tangible Asset You Can Control
Unlike stocks or mutual funds, land provides a physical asset you can visit, improve, and control. This tangible nature offers peace of mind during uncertain economic times and allows you to directly influence your investment’s value through improvements and management decisions.
Multiple Income Opportunities
Land can generate passive income through various approaches:
- Agricultural leasing to local farmers
- Recreational activities like hunting leases
- Cell tower or solar panel installations
- Parking or storage uses
- Timber harvesting on forested properties
Hedge Against Inflation
Land often serves as an effective hedge against inflation because its value tends to rise with inflationary pressures. Research shows that real estate, including land, provides effective long-term inflation protection, with studies indicating positive correlations between land values and inflation over extended periods. As the cost of goods and services increases, so does land value and the properties built upon it.
Tax Advantages
Land ownership provides several tax benefits:
- Lower property tax on undeveloped land versus improved property
- Potential deductions for property taxes and interest expenses
- Agricultural exemptions may apply to qualifying properties
- Depreciation opportunities on certain improvements
Challenges to Consider
Higher Interest Rates and Financing
Interest rates have increased borrowing costs for real estate purchases. Land loans typically require higher down payments (often 20-50% for raw land), higher interest rates than home mortgages, and shorter repayment terms compared to residential financing. According to FDIC standards, raw land may require down payments as high as 30-50% of the total cost with additional costs for closing fees, surveys, environmental assessments, and legal expenses.
Ongoing Costs
While property tax on vacant land runs lower than improved property, you’ll still face annual property tax, maintenance costs for access roads and fencing, and insurance in some cases.
No Immediate Cash Flow
Land ownership builds equity over time while providing potential appreciation as surrounding areas develop. Property may increase in value through infrastructure improvements, zoning changes, or increased demand for the area. However, returns often take years to materialize, requiring patience and long-term thinking.
Unlike immediate income-producing investments, land requires ongoing carrying costs without guaranteed returns. Factor in annual property taxes, maintenance expenses, and opportunity costs when calculating potential returns.
Due Diligence Requirements
Successful land investment requires thorough research, including zoning restrictions and future development plans, mineral rights and water rights, environmental concerns and flood zones, and access rights and utility availability.
What Makes Nebraska Attractive for Land Investment
Strong Agricultural Foundation
Nebraska benefits from fertile soils, irrigation access from the Ogallala Aquifer, and ideal climate conditions for corn and soybean production. The state consistently ranks among top agricultural producers nationally, supporting land values through productive agricultural use.
Reasonable Land Prices
Compared to coastal states, Nebraska offers affordable entry points for new investors, quality agricultural land at competitive prices, and room for appreciation as demand grows from both agricultural and non-agricultural buyers.
Strategic Location
Nebraska’s central location provides excellent access to national markets and transportation networks, supporting both agricultural operations and potential future development projects.
Making Your Decision

Personal Financial Assessment
Before investing in land, evaluate your financial position carefully. Consider your available cash for down payment and ongoing operations. Review your monthly cash flow to understand what you can afford in mortgage payments and carrying costs. Explore loan options through farm credit services, traditional banks, or specialized land lenders.
Investment Strategy Alignment
Think about how land ownership fits your overall investment portfolio. If you’re building wealth for retirement, land can provide long-term appreciation and inflation protection. For immediate income needs, consider how you might generate returns through leasing or other arrangements.
Decision Framework
Write down your investment priorities and timeline. Your list must have features like location, access, and development potential. Calculate the total cost of ownership including purchase price, financing costs, and ongoing expenses. Compare potential returns to other investment options available to you.
Talk to agricultural lenders, tax professionals, and experienced land investors in your area. They can provide insights on local land values and help you evaluate whether land investment makes sense for your situation.
Expert Tips for Land Investment Success
Start with Clear Goals
Define whether you want long-term appreciation through patient holding, active development for quicker returns, passive income through leasing arrangements, or personal use combined with investment potential.
Research Local Markets
Conduct thorough market research to understand local real estate trends, supply and demand dynamics, and property values. Focus on areas with population growth trends, infrastructure development plans, and economic diversification beyond single industries.
Work with Local Experts
Partner with professionals who understand Nebraska land markets including local real estate agents specializing in land, attorneys familiar with land transactions, and surveyors and environmental consultants.
Plan for the Long Term
Land investments often take time to appreciate, so prepare for a long-term commitment. Successful land investors typically think in decades, not years, allowing time for appreciation and development opportunities to emerge.
Market Outlook for 2025 and Beyond
Continued Demand Drivers
The nation faces a housing shortage estimated at 4.9 million homes. This shortage, compounded by rising material costs and labor shortages, creates opportunity for land positioned for future development.
Technology Integration
Technology tools using artificial intelligence and predictive analytics are helping investors identify opportunities more efficiently. Savvy investors leverage these tools for better deal analysis and market evaluation.
Water Rights Increasingly Important
Water rights are becoming more valuable as water scarcity concerns grow. Properties with water access and rights may see additional appreciation beyond basic land values.
Is Land Investment Right for You?
Buying land can be an excellent investment for the right person with proper planning and realistic expectations. Land offers unique advantages including limited supply, potential for appreciation, and protection against inflation. Nebraska provides particularly attractive opportunities with fertile agricultural land, reasonable prices, and strategic location.
Land investment works well for investors with discretionary income beyond emergency funds, patience for long-term appreciation, and ability to handle additional costs like property taxes and maintenance. Success requires substantial capital, thorough research, and understanding local markets.
To get started, analyze your investment goals and risk tolerance, meet with agricultural lenders and land specialists, and research recent sales in your target area. Work with experienced professionals to evaluate specific properties and run financial projections.
Ready to explore land investment opportunities in Nebraska? Contact Lashley Land today. Our team specializes in Nebraska farmland, recreational properties, and investment land throughout west central Nebraska. With over 55 years of experience, we understand the complexities of land investment and can help you find the right property for your goals. Call us to discuss your land investment needs and explore our extensive listings of Nebraska properties.