Florida’s land market may be in a transitional state, but large accretion and facility land transactions are on the forefront.
Sanders’ real estate brokerage conducted the Ray of the Land 2024 Florida Market Report, finding that in 2024 more than 72,000 acres of farmland were sold and moved to residential, solar and commercial development. The analysis found issues related to trends from last year.
“The change highlights both economic growth in the state and rising land values, but also raises concerns about pressure on farmland. Farmers are facing challenges due to rising costs and lower land availability, as they are further complicated by declining industries such as citrus,” the report concluded.
“As Florida land market continues to evolve, the need for effective conservation strategies, including investments in conservation easements, is now more urgent than ever to ensure the preservation of the state’s agricultural heritage.”
The report continues to the land value of Sunshine State since 2013, and with continued population growth, Florida will become one of the nation’s largest destinations for land purchases in 2025.
“The Florida land market is driven by large accreditation contracts and institutional investment despite a slight drop in overall trading volume. “Less investors have been pulled back due to rising interest rates and uncertainty, but key players have consolidated land and focused on large-scale acquisitions, leading players have been leaning. However, Florida’s economic growth and rising land values have put additional pressure on agricultural activities due to higher costs and reduced land availability.”
The report says ranch and recreational land continues to be purchased in the state, but the market in the region, ranging from 50 to 500 acres, is cooled. However, the area, over 500 acres, has generated more interest from buyers.
Farmland purchases remained strong. Last year the average farmland trade size was 397.64 acres, with an average price per acre of $10,403.56.
The number of trades on citrus land doubled in 2023. In 2023 there were 128 citrus land purchases, most of which took place in Pork and Hardy counties, 34 in Pork and 27 in Hardy. “These figures indicate a growing interest in the acreage of citrus fruits in these regions, and are probably driven by changing land use trends and demand for agricultural characteristics,” the report states.
