How Much Does Land Cost in North Dakota?

Land values in North Dakota vary significantly, reflecting the state’s diverse landscape and economic activities. From agricultural plains to urban centers and energy-rich regions, understanding these values requires examining different land types and the economic forces shaping them.

Understanding North Dakota Land Values

North Dakota’s land values are influenced by its predominant agricultural sector and other economic drivers. Average land prices provide a general understanding, though specific parcels can deviate based on local conditions.

Agricultural land forms a substantial portion of North Dakota’s real estate market. In 2023, the average farm real estate value, including land and buildings, was $2,320 per acre, a 13% increase from the previous year. Cropland values rose 13% to $2,660 per acre in 2023. By 2024, North Dakota cropland values continued their upward trend, increasing 11.59% to $3,174 per acre, marking the third consecutive year of double-digit increases.

Non-irrigated cropland cash rent averaged $76.00 per acre in 2023, while irrigated cropland rent was $189.00 per acre. Pastureland averaged $1,070 per acre in 2023, a $140 increase from the prior year, with cash rent at $20.50 per acre. By 2024, statewide pastureland values increased to $1,355 per acre, a 6.63% rise, and cash rental rates reached over $23 per acre.

Residential land values in North Dakota vary widely by location. Undeveloped residential lots in urban areas, such as Fargo or Bismarck, command higher prices due to demand and infrastructure. Suburban lots offer a balance between accessibility and space, while rural residential land is more affordable per acre but may lack immediate access to amenities. In Central North Dakota, the median price per acre for land listings was $20,335.

Commercial land prices are highly location-dependent, with parcels near major highways, city centers, or industrial zones fetching premium prices. Values can range significantly, from hundreds of thousands to millions of dollars for larger or strategically located parcels. Commercial land listings can vary widely, with specific industrial sites listing for millions depending on size and location. Development potential and existing zoning classifications heavily influence these values.

Recreational or undeveloped land, sought for hunting, fishing, or general recreational use, also presents a range of values. This land may not have immediate development potential but holds value based on natural features, water access, and wildlife populations. Prices vary depending on unique characteristics and remoteness. Listings for recreational land can range significantly, with some parcels priced under $50,000 and others exceeding $750,000, depending on acreage and amenities.

Key Factors Influencing Land Prices

Several factors contribute to the fluctuation and variation in North Dakota land prices. These elements interact to create a complex market landscape.

Agricultural commodity prices significantly influence farmland values. When prices for crops like wheat, corn, and soybeans are high, farm incomes increase, enhancing the value of agricultural land. This direct correlation leads to upward pressure on cropland prices during strong commodity markets. Conversely, declining commodity prices can temper land value growth.

Oil and gas activity, particularly in western North Dakota, impacts land values in those regions. Demand for land related to energy exploration, production, and supporting infrastructure drives up prices for both surface and mineral rights. This activity also increases demand for housing and commercial spaces, influencing residential and commercial land values in affected areas.

Population and economic growth across the state drive land value appreciation. Regions experiencing job growth and population increases increase demand for residential, commercial, and industrial land. This expansion translates into increased competition for available land, pushing prices upward in growing urban and suburban areas.

Location and accessibility are key factors. Land near urban centers, major transportation routes, or essential services commands higher prices. Proximity to amenities, schools, and employment centers increases the value of residential and commercial properties, while strategic access for agricultural operations or resource extraction benefits other land types.

Soil quality and water access are important for agricultural land. Highly productive soils capable of supporting diverse crops or robust grazing, along with reliable water access through natural sources or irrigation, contribute to higher farmland values. Irrigated land commands a higher price per acre than non-irrigated land due to its higher productivity.

Zoning regulations and development potential influence land values, especially for non-agricultural parcels. Land zoned for commercial or residential development, or with potential for rezoning, has a higher market value than land with more restrictive zoning. The possibility of future development unlocks greater utility and potential returns for investors.

Interest rates and financing conditions affect land affordability and demand. Lower interest rates make land purchases more accessible and attractive by reducing borrowing costs, stimulating demand and potentially increasing prices. Conversely, rising interest rates cool the market by increasing financing costs, leading to a slowdown in land value appreciation.

Resources for Land Valuation and Listings

For those seeking specific and localized information regarding land values and available listings in North Dakota, several practical resources are available. These tools can help in understanding current market conditions and identifying potential opportunities.

Official data sources provide overviews of land values. The USDA National Agricultural Statistics Service (NASS) offers reports on agricultural land values and cash rents, including state-level and regional data. North Dakota State University (NDSU) Extension annually publishes land rent and value surveys, useful for agricultural land and breaking down values by specific regions. Local county assessor’s offices maintain property tax assessment data, providing insight into assigned property values for tax purposes. These assessments may not always reflect current market value but can serve as a starting point for research.

Consulting with local real estate professionals specializing in land sales in North Dakota can provide insights. These agents and brokers possess knowledge of local market nuances, recent sales data, and upcoming listings. They offer tailored advice based on specific land types and geographic areas of interest.

Online listing platforms are used to search for available land. Websites like Zillow, LandWatch, and Crexi feature land listings across North Dakota, allowing users to filter searches by location, land type (e.g., agricultural, residential, commercial), acreage, and price range. These platforms provide a convenient way to survey the market, often including photographs and property descriptions.

For precise valuation, especially for significant transactions, seeking a professional land appraisal is recommended. A certified appraiser conducts an analysis of a property’s characteristics, local market conditions, and comparable sales to determine an estimate of its market value. This assessment provides a basis for informed decision-making.