How Much Is an Acre of Land in North Dakota?

The value of an acre of land in North Dakota is not fixed. It is dynamic, constantly shifting based on various influences. The state’s unique economic landscape, characterized by significant agricultural activity and natural resource extraction, contributes to a diverse land market. Understanding these forces is essential for assessing land worth.

Understanding Key Valuation Factors

Location is a primary determinant of land value, affecting its price regardless of intended use. Land near major population centers like Fargo, Bismarck, or Grand Forks typically commands higher prices due to increased demand for development. Proximity to major transportation arteries, such as I-94 or I-29, also enhances value by improving accessibility. The presence of amenities, including schools, hospitals, and shopping centers, can positively influence land desirability and price.

The land’s inherent characteristics play a substantial role in its valuation. For agricultural properties, soil quality is paramount, with productive soils fetching premium prices. Topography, including physical features and elevation, affects usability; flat, easily developable land is often more valuable. Access to water sources, like rivers, lakes, or aquifers, is important for agricultural and development purposes. The presence of natural resources, such as oil, natural gas, or minerals, can also increase land value.

Development potential is a significant factor, influenced by local zoning regulations. Land zoned for commercial or industrial purposes in high-demand areas is generally more valuable than agricultural land. The availability of essential utilities, including water, sewer, and electricity, is crucial as it reduces development costs. Future development potential, such as urban expansions or new infrastructure, can also drive up land prices.

Broader market conditions also influence land values. Economic trends, like growth or recession, impact investor confidence and real estate demand. Supply and demand principles mean areas with high demand and limited land typically see price increases. Prevailing interest rates affect land purchase affordability; lower rates can stimulate demand by making financing more accessible, supporting higher land values.

Valuation by Land Use Category

Agricultural land values vary based on productive capacity and use. High-quality cropland with fertile soils and good drainage can command prices from $4,000 to $6,000 per acre, especially with irrigation access. Values are influenced by commodity prices, as higher crop prices increase farming profitability. Pastureland, used for grazing, typically sells for less, often ranging from $1,000 to $2,500 per acre, depending on carrying capacity and water availability.

Residential land values depend on location and community infrastructure. Urban and suburban lots in growing cities can range from tens of thousands to several hundred thousand dollars for smaller parcels, influenced by school districts, employment centers, and amenities. Rural residential parcels, larger and more secluded, might sell for $5,000 to $20,000 per acre, with prices based on service access and utilities. Recreational properties, like lakefront lots or land near outdoor destinations, often command premium prices due to their unique appeal and limited supply.

Commercial and industrial land values are driven by strategic location and development potential. Land with high traffic, visibility, and access to major roads or rail lines is more valuable for commercial use. Zoning permitting specific business types, such as retail or manufacturing, also plays a role. Prices vary widely, but commercial parcels can range from $50,000 to several hundred thousand dollars per acre in prime locations, reflecting earning potential.

Recreational land, including hunting properties or land near natural attractions, derives value from its features and aesthetic appeal. Properties with access to prime hunting, fishing, or scenic views typically fetch higher prices. Mature timber, water features, or established wildlife habitats can enhance value. These properties can range from a few hundred dollars per acre for less desirable tracts to several thousand dollars per acre for premium recreational parcels, depending on attributes and accessibility.

Resources for Current Land Values

Real estate listings and specialized land sale websites provide a primary avenue for exploring current land values. Platforms like Land.com or LoopNet often feature properties for sale, allowing users to observe asking prices and recent trends. These websites include filters to narrow searches by location, land type, acreage, and price range, offering a real-time market snapshot. While asking prices are not always equivalent to sale prices, they indicate market expectations.

University and government reports offer data-driven insights into land values. North Dakota State University (NDSU) Extension publishes annual reports on agricultural land values and cash rental rates, providing detailed analysis by region and land type. These reports include average sale prices, market trends, and factors influencing value, serving as an authoritative source for agricultural land. County assessor offices also maintain public records of property assessments and recent sales data, accessible to understand local transaction values.

Engaging with local real estate professionals specializing in land transactions provides invaluable market knowledge. Agents and brokers in North Dakota possess up-to-date information on recent sales, current listings, and local market dynamics. They offer informed opinions on specific parcels, guide buyers or sellers through valuation, and provide insights into zoning and development prospects. Their expertise is useful for unique or complex land transactions.

Public records, maintained at the county level, offer a transparent view into historical land transactions. County recorder or register of deeds offices house records of property deeds, including sale prices and transfer dates. While accessing these records may require a visit or navigating online portals, they provide verifiable data on past sales. Analyzing these records helps establish a baseline for property values, offering context for current market conditions and trends.