How Much Is an Acre of Land in Wisconsin?

Land values in Wisconsin exhibit considerable variability, influenced by a complex interplay of factors. Understanding land valuation requires looking at a parcel’s diverse characteristics and surroundings. The worth of land can fluctuate, making a precise determination a nuanced process. This exploration provides insights into elements that shape land values across the state.

Key Factors Influencing Land Value

Location

The location of a property significantly impacts its value. Proximity to urban centers, amenities, and major transportation routes often correlates with higher prices. Land near desirable natural features, such as lakes or forests, also commands a premium.

Agricultural land values are typically highest in counties along Lake Michigan, within the Fox Valley, and in Southern Wisconsin. Urban and suburban areas generally exhibit higher land values compared to rural regions due to their closeness to services and infrastructure. Urban expansion can also contribute to maintaining or increasing land values.

Zoning and Permitted Land Use

Zoning and permitted land use directly dictate activities, influencing a property’s market value. Local zoning ordinances classify land for purposes such as agricultural, residential, commercial, industrial, or conservancy use. Appraisers assess the “highest and best use” of a property, considering its potential for development or utilization based on these regulations. Specific zoning and environmental constraints play a substantial role in determining a parcel’s potential and value.

Land Characteristics

Land characteristics are important determinants of value. Topography, such as whether the land is flat or hilly, can affect usability and development costs. Soil quality is significant for agricultural land, impacting productivity and crop yields. The presence of water features like lakes, rivers, or wetlands, and the value of any timber, contribute to its appeal and utility. Access to essential utilities, including water, sewer, electricity, and internet, also enhances a property’s value.

Existing Improvements

Existing improvements can add to a property’s overall value, particularly functional structures or infrastructure. Barns, homes, and other outbuildings contribute to a parcel’s utility and readiness. Beyond structures, the presence of installed wells, septic systems, or established driveways can reduce immediate investment, making land more attractive. These elements affect marketability and price.

Market Conditions

Market conditions reflect the economic climate and investment trends. Factors such as general economic growth, prevailing interest rates, and the dynamics of supply and demand influence pricing. While the rate of land value increase in Wisconsin has slowed, values continue to climb. A limited supply of available land can support existing values, even during periods of decreased sales volume.

Average Land Values by Type and Region

Agricultural Land

Agricultural land values vary by use and quality. The average price for agricultural land sold in Wisconsin between January and December 31, 2024, was approximately $6,363 per acre. This represented a 7% increase from the previous year. Another report from the USDA National Agricultural Statistics Service indicated that Wisconsin’s farm real estate value, encompassing land and buildings, averaged $6,120 per acre in 2024, remaining stable.

Agricultural Categories

Cropland values in Wisconsin rose to an average of $6,800 per acre in 2024. Pastureland saw its average value increase to $3,200 per acre in the same year. Productivity and soil quality determine these values, with tillable cropland commanding higher prices than pasture or woodlots.

Recreational Land

Recreational land, including properties primarily used for hunting or featuring significant natural attributes, typically falls within a price range of $2,000 to $5,000 per acre. These values are often driven by factors such as access to water, dense timber, or desirable wildlife habitats. Demand is strong in northern counties, where outdoor pursuits are prevalent. Features and accessibility influence market appeal.

Residential Land

Residential land values vary widely by location and development potential. Undeveloped residential lots, particularly those closer to towns and services, command higher prices. Value is influenced by zoning, utility availability, and building suitability. Prices range significantly, from moderate for rural acreage to much higher for suburban plots with immediate development potential.

Commercial and Industrial Land

Commercial and industrial land typically represents the highest per-acre values, specific to location and intended use. Parcels with commercial development potential situated near urban centers can sell for over $100,000 per acre. Valuation depends on traffic visibility, accessibility, existing infrastructure, and surrounding economic activity. These values are not easily generalized and require detailed, site-specific analysis.

Regional Variations

Regional variations demonstrate differences in land values. Agricultural land prices are higher in southeastern Wisconsin, and in areas with strong dairy and row crop industries like the Fox Valley and Southern Wisconsin. The southeastern region also shows a leading appreciation rate for land. Northern Wisconsin often sees lower prices for undeveloped land, though demand for recreational parcels is robust. For example, Dane County shows an average agricultural land value of approximately $9,826 per acre, illustrating how localized demand can push prices above the state average.

Methods for Estimating Specific Land Values

Professional Appraisals

Professional appraisals offer the most accurate assessment of land value. A certified land appraisal involves detailed analysis by a qualified appraiser, often required for financing or legal disputes. These professionals evaluate the property’s characteristics, market conditions, and its highest and best use. The process includes property inspection and comparison with recent sales of similar parcels. Appraisals can take approximately 90 days, depending on complexity.

Local Real Estate Agents

Local real estate agents specializing in land provide valuable insights into property values. Agents prepare Comparative Market Analyses (CMAs) by examining recent sales data for similar properties. Their understanding of local market dynamics and buyer demand allows informed opinions on a property’s likely selling price. Engaging an agent with land expertise ensures relevant market trends and comparable properties are considered.

Online Resources and Public Records

Online resources and public records offer accessible tools for preliminary land value research. Many county assessor’s websites provide public access to property tax assessments. These assessments are primarily for tax purposes and may not fully reflect current market values. Geographic Information System (GIS) tools are available through some county websites, providing interactive maps with details on property boundaries, soil data, zoning, and floodplains. These tools are useful for initial research and visualizing property characteristics.

Site Visit and Due Diligence

Conducting a site visit and due diligence are important steps in understanding a property’s market potential. Inspecting the land allows observation of its topography, natural features, and access points, which may not be evident from maps or online data. Investigating local zoning ordinances, identifying easements, and checking for environmental concerns are crucial. These investigations provide a comprehensive understanding of opportunities or limitations, informing a more accurate valuation.