How Much Is an Acre of Land Worth in Arkansas?

Understanding the value of an acre of land in Arkansas involves navigating a dynamic market influenced by various factors. Land is not a commodity with a fixed price; its worth fluctuates significantly based on inherent characteristics and prevailing economic conditions. Determining a precise value requires careful consideration of numerous variables, making it a complex assessment rather than a simple calculation. The valuation process considers both the physical attributes of the land and the broader market forces at play. This variability means that two seemingly similar parcels of land can have vastly different market values depending on these underlying elements.

Key Factors Influencing Land Value

The location of a property significantly shapes its market value. Land situated closer to urban centers, major transportation arteries like interstates and highways, and established amenities such as schools and healthcare facilities generally commands higher prices. Proximity to recreational areas, including lakes, rivers, or national forests, can also enhance the appeal and value of a parcel, particularly for recreational or residential purposes. These locational advantages contribute to convenience and desirability, directly impacting pricing.

The intended or potential use of the land is another primary determinant of its worth. Agricultural land is often categorized as tillable cropland, pastureland, or timberland, with prime cropland typically fetching higher values due to its productive capacity. Residential land, whether for suburban development or rural acreage, is valued based on its suitability for housing and access to services. Commercial land, designated for business operations, derives its value from visibility, accessibility, and zoning that permits specific enterprise types.

Topography and soil quality also play a substantial role in valuation. Flat, well-drained land is generally more desirable and valuable for most uses, including agriculture and construction, compared to hilly or uneven terrain. For agricultural parcels, fertile soil with good drainage characteristics can significantly increase productivity and, consequently, the land’s market price. Land with poor drainage or rocky soil may require extensive improvements, reducing its overall value.

Accessibility and the availability of essential utilities are fundamental to land value. Properties with direct road frontage are typically more valuable than landlocked parcels requiring easements for access. The presence of readily available utilities such as municipal water, electricity, sewer or septic systems, and reliable internet service reduces development costs and enhances usability. Land without these services often requires substantial investment to become functional, which is reflected in a lower initial purchase price.

Local zoning ordinances and environmental regulations can either restrict or enhance land use, thereby influencing its value. Zoning dictates what types of structures can be built and for what purposes, directly affecting development potential. Environmental regulations, such as those protecting wetlands or endangered species habitats, might impose limitations on development, impacting the land’s highest and best use. Understanding these regulations is important for assessing a property’s true potential and market worth.

Broader market conditions also exert considerable influence on land values. Factors such as the balance between supply and demand for land in a specific area, general economic trends, prevailing interest rates, and population growth within Arkansas can cause values to rise or fall. A strong economy and increasing population often lead to higher demand and appreciating land prices, while economic downturns can result in stagnation or declines. These overarching economic forces provide a context for individual property valuations.

Average Land Values in Arkansas by Region and Land Type

Average land values in Arkansas vary considerably by region and land type. Northwest Arkansas, including Benton and Washington counties, generally has higher land values, averaging around $8,500 per acre in 2023. This region is the state’s most expensive due to its booming economy and scenic beauty. Central Arkansas, encompassing the Little Rock metropolitan area, also sees elevated land prices, averaging around $3,500 per acre, depending on proximity to major population centers and development potential.

The Ozark region, known for its mountains, lakes, and rivers, typically shows land prices around $4,000 per acre. In contrast, the Delta Region, dominated by fertile farmland, averages approximately $3,000 per acre. These regional differences highlight the impact of local economic drivers and geographical features on land valuation.

Tillable cropland values vary significantly based on irrigation. As of 2023, irrigated cropland averaged around $3,680 per acre, while non-irrigated cropland was approximately $2,360 per acre. More recent 2024 data indicates irrigated cropland values have risen to about $4,200 per acre, and non-irrigated cropland is around $2,710 per acre. Fertile cropland can reach up to $3,600 per acre, with less productive land going for as low as $2,000 per acre.

Pastureland values in Arkansas have shown robust growth, averaging $3,270 per acre in 2024, a 3.5% increase over 2023 figures. In 2022, pastureland values were around $2,850 per acre. Prices generally fluctuate between $2,300 and $4,307 per acre, with pristine pastures commanding higher prices.

Timberland in Arkansas, covering about 56% of the state’s total land base, typically ranges from $1,420 to $2,967 per acre, depending on tree type and density. Recreational land, such as hunting or fishing properties, often has a wide value range, depending on features like water access and wildlife populations. The average value of farm real estate in Arkansas, including land and structures, reached an estimated $4,110 per acre in 2024, a 4.8% increase from 2023. These averages are based on market trends and publicly available data from sources like the USDA National Agricultural Statistics Service and university extension services.

How to Research Specific Land Values

To determine the specific value of a particular acre of land, consulting public records is an initial step. The county assessor’s office in Arkansas maintains records of property tax assessments and recent sales data, which are often accessible online. While the assessed value for tax purposes may not perfectly align with current market value, it provides a baseline and insight into the property’s historical valuation. These records can also reveal details about the property’s size, improvements, and ownership history.

Engaging with local real estate professionals who specialize in land sales in Arkansas can provide valuable market insights. These agents have access to the Multiple Listing Service (MLS), which contains comprehensive data on properties currently for sale and recently sold comparables. Their local expertise allows them to provide a comparative market analysis (CMA), which estimates a property’s value by comparing it to similar properties that have recently sold in the immediate area. This analysis considers factors like location, size, features, and recent market trends.

For a formal and legally recognized valuation, hiring a certified land appraiser is the most comprehensive approach. A professional appraisal involves a thorough examination of the property, including its physical characteristics, legal description, and market conditions. Appraisers utilize various valuation methods, such as the sales comparison approach, income approach, and cost approach, to arrive at an informed opinion of value. This service is particularly useful for transactions requiring financing, legal proceedings, or accurate financial reporting.

Several reputable online real estate platforms also offer tools and data that can aid in land valuation research. These platforms often list land for sale, provide historical sales data, and sometimes offer proprietary valuation estimates based on algorithms. While these online tools can offer a preliminary estimate, they should be used in conjunction with more detailed research and professional advice. Comparing a property to recently sold similar properties, known as “comparables” or “comps,” is a fundamental principle applied across all these research methods to arrive at an accurate valuation.

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Citations:
The data for average land values is based on market observations, real estate reports, and analyses from sources such as the USDA National Agricultural Statistics Service (NASS) and University of Arkansas System Division of Agriculture. Specific data points often derive from annual surveys reflecting 2023 or early 2024 market conditions.