Is Land a Smart Buy in 2022?
Land likely isn't the first thing to come to most investors' minds when they think of investing in real estate. Investing in residential real estate, such as a fix and flip or rental property, or even buying shares of real estate investment trusts (REITs) are far more common investment strategies. But as the stock market experiences volatility and real estate prices continue to soar, land is looking more and more like a smart buy in 2022.
Land demand has slowly but steadily grown over the past decade, with the average price growth falling between 2% and 4% annually. Agricultural, including irrigated and non-irrigated farmland or cropland, and timberland are among the slowest-growing sectors, often with price growth between 0% and 1% annually.
On the other hand, residential and commercial real estate land -- which can be used to develop new industrial, retail, office, multifamily, or single-family homes -- falls between 3% and 5% on average, showing a much higher demand for this type of land.
Source Fool.com
