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Top 5 Counties to Buy Land for Sale in Alabama

Published: 10-23-23 Category: Buying

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The land market in Alabama is heating up: After slight declines over the past decade, land prices in Alabama have trended upward in the last two years, even as housing prices have fallen in 2023.

The state also experienced a notable jump in foreign agriculture investments. If you're looking to scoop up some parcels of your own, researching land for sale in Alabama may not be a bad idea for portfolio diversification and hedging.

Here, we'll cover the top five counties to buy land for sale in Alabama based on land availability, pricing, and real estate development opportunities.

Let's get started.

#1 – Jefferson County

Jefferson County, the largest county in Alabama, seats the City of Birmingham. Land for sale in Jefferson County tends to run on the pricier side, but its development opportunity is plentiful.

Jefferson has a workforce of over 300,000, with major manufacturing, retail, and healthcare influences.

Examples of recent industrial investment in Jefferson include a $30 million new development from Graham & Co in Bessemer and six new road projects meant to increase the county's business and transportation activity.

#2 – Lauderdale County

With land prices running as low as $1,400 per acre, Lauderdale is one of the cheaper counties to buy land for sale in Alabama.

Lauderdale's seat is Florence, and the county's economy mostly focuses on manufacturing—an industry requiring industrial land development. Other major industries in Lauderdale include retail and healthcare.

#3 – Cottondale County

Located inside Tuscaloosa, Cottondale is a census-designated region with major economic activity in automotive manufacturing, medical, and mining services.

Cottondale is next to Tuscaloosa, one of the largest investment-friendly cities in Alabama.

Some major development projects around Cottondale include an Epsilon Industries manufacturing plant and the new Wester Riverwalk shared-use walkway project.

#4 – Pickens County

Land for sale in Pickens County may go for as low as $1,500 per acre. Pickens County is located just west of Tuscaloosa, and its major industries include manufacturing, retail, construction, and industrial warehousing.

The county offers commercial development incentives to landowners, such as grants for site preparation, sewer improvements, and industrial road access.

One major land development project currently underway is a $10.8 million expansion of Nature's Earth Products to boost production.

#5 – Bullock County

Hunting and fishing generate more than $3 billion a year in Alabama, and many recognize Bullock County as one of the best places for hunting in the state.

Incidentally, Bullock County has some of the highest hunting lease rates in the state, at $8.42 per acre.

If making passive income from hunting land is your thing, then Bullock County is the place to be.

The county is located right next to Macon, Russel, and Barbour Counties, three other popular hunting destinations, so land positioned near county lines may benefit from hunters from all destinations.

What's the Average Cost Per Acre of Land for Sale in Alabama?

Top 5 Counties to Buy Land for Sale in Alabama

According to the USDA's 2023 Land Value Summary, the average cost of farmland in Alabama is $3,500 per acre.

The average value of Alabama cropland is $3,980, and the average value of Alabama pasture land is $3,000 per acre.

Overall, Alabama has some of the cheapest land compared to other southern states.

Who's the Biggest Landowner in Alabama?

The single largest landowner in Alabama is the US Government, which owns and manages over 700,000 acres. The largest private owner of commercial land in Alabama is the Westervelt Company, a land management company that owns 500,000 acres.

The largest non-land management land owner is Rayonier Inc., a timberland investment company with 300,000 acres.

Where Is the Cheapest Place to Buy Land in Alabama?

Based on our research from land listing data, the cheapest county to buy land for sale in Alabama is either Walker County or Hale County, both of which have average raw land prices ranging between $1,000 and $1,400 per acre—about 65% lower than the national average cost of farmland at $4,080.

Is Buying Land in Alabama a Good Idea?

Yes, buying land in Alabama can be a great idea, especially if you invest in farmland or cropland.

Nearly 25% of all jobs in Alabama are agriculture- or forestry-related. As such, there's plenty of opportunity to develop your land accordingly or lease it to farmers and create a new source of passive income.

Average leasing rates for irrigated cropland in Alabama were $137 per acre in 2023.

About 70% of Alabama's land is undeveloped forests, and over 93% is privately owned. Odds are, you'll be buying undeveloped land. Even though raw land might be cheaper, lending for raw land is riskier, so land loan rates and down payments might be higher.

Whether you're investing in land for sale in Lauderdale County or land for sale in Cottondale, you should have a commercial real estate broker on your investment team.

A broker can make your search for land for sale in Alabama less stressful by helping you find land with good real estate financials, gather environmental reports, explore financing options, and negotiate sales contracts.

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