Who’s buying rural Southwest real estate?

Sustainable Development Goals (SDGs) and Rural Real Estate Values in the Southwest

Introduction

The following report provides an analysis of the current trends in rural real estate values and sales in the Southwest region of the United States. The report emphasizes the impact of the Sustainable Development Goals (SDGs) on these trends.

Land Values on the Rise

A recent USDA report on land values has indicated a consistent upward trend in land values across the United States. This trend is particularly evident in the Southwest, with Texas and Oklahoma experiencing increases of 7.4% and 8.5% respectively. In contrast, land values in New Mexico have remained steady.

• COVID stimulus money
• Low interest rates
• Increased interest of urban dwellers to move to the country

Buyers in the Southwest

The buyers of rural real estate in the Southwest region can be categorized into several groups:

1. Farmers and ranchers
2. Outside interests purchasing tracts for recreational use
3. Investors looking for safe havens for their money
4. Foreign buyers

Farmers in the Market

According to Charles Gilliland, a research economist with the Texas Real Estate Research Center, farmers, buoyed by cash from insurance and stimulus programs, are actively buying farmland and outbidding investors. Recreational investors, on the other hand, show more interest in buying ranch land. Many buyers are motivated by concerns about economic and societal uncertainty and see land as a store of wealth. Additionally, there is an increase in buyers focused on conservation efforts and restoring native plants. Some wealthy individuals are also purchasing large ranches as working operations with new economic opportunities in mind.

Oklahoma

Roger Sahs, an Agricultural Economics Associate Extension Specialist at Oklahoma State University, states that foreign investment in Oklahoma’s agricultural real estate increased after the passage of SQ 788 (Medical Marijuana Legalization Initiative) in 2018. However, recent regulatory changes and additional enforcement have led to a decline in demand for land by grower interests.

New Mexico

Dwain Nunez, an associate broker in New Mexico, reports that all eight ranches sold by his company in 2023 were purchased by people in agriculture. Buyers mainly come from Texas, and there has been no significant presence of foreign buyers. Some rural real estate is being taken out of production agriculture but will remain as hunting property with conservation measures in place.

Texas

Foreign buyers are not as visible as they were in past decades in Texas. Dairy farms in North Texas attracted some foreign investors, while the largest purchases of forest land in East Texas were made by Canadians. Chinese buyers have attracted attention, but they represent a small percentage of foreign ownership. Objections from conservationists and other factors have halted certain investment plans.

Foreign Holdings

According to a December 2021 US Farm Service Report, foreign interests hold approximately 40 million acres of U.S. agricultural land, accounting for 3.1% of all privately held agricultural land and 1.8% of all land in the United States. Texas has the largest amount of foreign-held agricultural land, followed by Maine and Colorado. In Oklahoma and New Mexico, foreign entities own 4.4% and 3.8% of agricultural land respectively.

Foreign Buyers

A Congressional Research Service report from January 2023 reveals that Canada is the largest foreign owner of U.S. agricultural land, primarily forestland. The Netherlands, Italy, the United Kingdom, and Germany also have significant holdings. Other countries with substantial ownership include Portugal, France, Denmark, Luxembourg, Mexico, Switzerland, the Cayman Islands, Japan, and Belgium.

SDGs, Targets, and Indicators

1. SDG 1: No Poverty

   • Target 1.4: Ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property.
   • Indicator: Increase in rural land values and sales.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all.
   • Indicator: Increase in rural land values due to factors such as COVID stimulus money and low interest rates.

3. SDG 11: Sustainable Cities and Communities

   • Target 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums.
   • Indicator: Increased interest of urban dwellers to move to rural areas, leading to an increase in rural land values.

4. SDG 12: Responsible Consumption and Production

   • Target 12.2: By 2030, achieve sustainable management and efficient use of natural resources.
   • Indicator: Increase in buyers focused on conservation, including restoring native plants, and development of properties for sale to wealthy individuals.

5. SDG 15: Life on Land

   • Target 15.1: By 2020, ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems and their services.
   • Indicator: Increase in buyers focused on conservation and restoration of native plants in rural areas.

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: farmprogress.com

Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.