How Much Is Land Per Acre in Tennessee?

Land valuation is a complex process, with property prices varying significantly. In Tennessee, land value is influenced by diverse factors. Understanding these elements is important for assessing land worth within the state. This overview explores primary determinants of land prices, regional differences, and methods for obtaining reliable valuation data.

Key Factors Influencing Land Value in Tennessee

Several fundamental elements drive land prices across Tennessee, creating significant differences in per-acre costs. Location is a primary determinant, with proximity to urban centers, infrastructure, and amenities increasing property values. Land within an hour’s drive of major cities like Nashville, Knoxville, Chattanooga, and Memphis generally sells for higher prices than more remote rural properties. Parcels near major highways and interstates, such as I-40, I-75, I-24, and I-65, command higher valuations due to enhanced accessibility.

Accessibility extends beyond major roads to include ease of access, road frontage, and any easements or rights-of-way that might affect usability. The availability of essential utilities like water, sewer, electricity, natural gas, and internet access significantly impacts a property’s appeal and development potential. Properties lacking these services often require substantial investment, reflected in a lower initial land price.

Topography and terrain play a considerable role in valuation. Flat, buildable land is more desirable for development than sloped, mountainous, or flood-prone areas, though scenic views can add value in hilly regions. Zoning and land use regulations dictate permissible uses for a parcel, such as residential, commercial, agricultural, or industrial, directly influencing its market value. Commercial zoning near interstate exits, for instance, can significantly increase land value compared to agricultural designations.

Soil quality and water rights are relevant for agricultural land, where productive soil and access to water for irrigation enhance value. Natural features, including timber, water bodies, or unique geological formations, also contribute to a property’s worth, especially for recreational purposes. Existing structures, even if dilapidated, can affect land value by offering a base for renovation or requiring costly demolition. Broader market demand, influenced by economic conditions and buyer interest, consistently impacts land prices.

Regional Variations Across Tennessee

Land prices in Tennessee exhibit distinct regional variations, reflecting population density, economic activity, and geographic characteristics across the state’s three Grand Divisions. In East Tennessee, including Knoxville and Chattanooga, land values are influenced by tourism, proximity to the Great Smoky Mountains National Park, and urban development. Rural land in the Knoxville area averages around $76,716 per acre, while land in Chattanooga is approximately $145,046 per acre. Sevier County, a popular tourist destination, has seen median prices as high as $175,000 per acre for smaller lots.

Middle Tennessee, particularly the Nashville metropolitan area, experiences some of the state’s highest land values due to rapid population growth and commercial development. Davidson County, where Nashville is located, shows an average cost of $558,863 per acre, with median prices reaching over $574,000 per acre. Williamson County, known for its affluence, leads the state with median prices exceeding $175,000 to $400,000 per acre, depending on the parcel and its development potential. Demand for land in this region stems from its booming economy and influx of residents.

West Tennessee, including Memphis and the more agricultural western plains, presents different land value dynamics. While Memphis is a major urban center, land prices are more varied, with an average cost of $75,150 per acre. Cheaper land in Memphis can be found at an average of $10,556 per acre. The median price per acre for land listings across West Tennessee is about $9,381, reflecting a larger proportion of agricultural and rural land compared to the central region. Agricultural land values throughout the state have seen significant increases, with farm real estate averaging $4,500 per acre in 2023, and cropland values at $5,610 per acre in 2024.

Types of Land and Their Valuation

Land valuation in Tennessee varies considerably based on its intended use and inherent characteristics. Residential land, found in or near populated areas, is valued based on lot size, neighborhood quality, local school district reputation, and potential for single-family or multi-unit development. Residential land in Davidson County, for instance, can range from $175,000 to $300,000 per acre, with prime locations commanding higher prices.

Agricultural land is assessed by its productive capacity, considering tillable acreage, soil productivity, and water availability for irrigation.

Commercial land valuation focuses on its potential for business use, with considerations including visibility, traffic counts, ease of access to major roads, and suitability for retail, office, or industrial development. Commercial properties in downtown Nashville, for example, can command prices up to $20 million per acre in prime locations due to their economic hub status.

Recreational land, characterized by natural features, is valued for its potential for activities such as hunting, fishing, or enjoying privacy and scenic views. Properties with timber, water bodies, or proximity to natural attractions like the Great Smoky Mountains can significantly increase their appeal and value. Forested and recreational land typically ranges from $4,500 to $10,000 per acre, with pricing influenced by access and amenities.

Undeveloped or raw land presents unique valuation challenges, often lacking existing infrastructure or a clear immediate use. Its value largely depends on its future development potential and alignment with local zoning regulations.

Finding and Interpreting Land Price Data

Accessing and understanding land price information is a practical step for anyone interested in Tennessee real estate. Online real estate listing platforms, such as Zillow, Realtor.com, and Land.com, offer a broad range of properties for sale and provide insights into active listings and recent comparable sales. Users can filter searches by location, acreage, and land type to identify similar properties.

Consulting local real estate professionals specializing in land sales can provide a deeper understanding of market nuances and access to private listings or properties not widely advertised. These agents possess localized knowledge of recent transactions and emerging market trends. County assessor’s offices also serve as valuable public resources, offering historical sales data through tax assessments and deed transfers. While assessed values are used for property tax purposes, they may not always reflect current market value, so this data should be interpreted with caution.

For a precise valuation, obtaining a professional land appraisal is often recommended. Appraisers conduct thorough analyses, considering the property’s “highest and best use”—its most profitable and legally permissible use—along with its physical characteristics, access, and utility availability. An appraisal provides a detailed, objective assessment of a property’s market value.

When interpreting “per acre” data, recognize that this is an average and individual property values are highly nuanced. Smaller parcels frequently command a higher per-acre price than larger ones due to greater demand for smaller, more manageable lots. Unique features, such as exceptional views, specific zoning, or valuable natural resources, can significantly skew per-acre averages for any given property.