- AI and geospatial tools now enable land investors to predict parcel value with far greater accuracy.
- Zoning reforms across U.S. metros may boost residential land availability by up to 40%.
- Suburban and exurban areas are gaining land value due to population spillover and urban scarcity.
- Land with rezoning or infrastructure proximity shows highest ROI potential in 2025.
- Tech-enabled due diligence allows investors to sidestep historically high-risk land deals.
Land has always held a special place in real estate investing—for its potential, simplicity, and comparatively low risk. But in 2025, the game is changing. Today’s land investors need to factor in everything from rezoning opportunities and infrastructure projects to artificial intelligence tools and shifting migration patterns. If you’re considering land acquisition this year, now is the perfect time to see if it’s still a smart way to build wealth.
The State of Land Investment in 2025
Land investing has always appealed to investors because of its perceived stability and long-term upside. But in 2025, it’s becoming more complex. It’s not just about holding onto raw dirt hoping it goes up in value anymore. New technology and big changes in rules are turning simple plots into chances for growth. With more people moving to outer metro areas and high demand for buildable land during the housing shortage, land investment has changed from a speculative bet into a strategic real estate move. Modern investors are using zoning reform, intelligence tools, and infrastructure maps to find land that costs less than it’s worth before its price goes up.
Key Macro Trends Driving Land Investment
Several big economic and population trends are changing land investment in 2025
Population Shifts Toward the Suburbs and Beyond
High housing costs in cities are still pushing buyers and renters out of major city centers. This means nearby suburbs, exurbs, and even country areas are seeing steady population increases. This shift increases demand for nearby land to build on, especially for land zoned or ready for homes and mixed-use buildings.
According to the National Association of Realtors, remote work is still increasing moves, especially in the South and Mountain West. The result? Land plots farther out that people once thought were too far from economic centers are now popular spots for building homes.
The Housing Affordability Crisis
Across the country, there are far fewer homes available than people want. This is causing developers to look for affordable, undeveloped land. New buildings are going up more and more in smaller and mid-sized markets where land is easier to find and cheaper.
Developers building workforce housing and apartments people can afford need cheap land to keep their profits up. Investors who find these areas early can make money as property values, including land prices, go up with each new building.
Urban Land Shortages Push the Edges
People often say land in cities is limited, and this is very true in many coastal cities. As space gets hard to find in crowded areas, developers are building farther out. And local governments are doing the same, offering reasons for development just outside city limits.
Today’s real estate investors are focusing more on land ‘near the city’ in areas that are growing. These areas have infrastructure and zoning rules ready to allow more buildings.
Zoning Changes & Government Policy as Catalysts
Zoning rules are one of the biggest reasons land investments make money. In 2025, many cities and states are changing their zoning rules to help with housing shortages and encourage better growth.
End of Exclusive Zoning Practices
A 2023 study by the Urban Institute found that changing zoning rules could increase the number of homes available by 40% in some areas (Urban Institute, 2023). Rules that make it easier to build apartments, like letting people build duplexes and triplexes in single-family areas, are changing land that could only be used for one thing into investments with big chances.
New Incentives and Public-Private Partnerships
Local governments are working more and more with private companies to redevelop old or not fully used land, especially for housing. Tax breaks, faster permits, and sharing infrastructure costs are common reasons offered by local and state governments to encourage building.
Commercial to Residential Conversions
Work-from-home is still affecting office buildings. Because of this, cities are changing zoning rules to allow commercial buildings to be turned into mixed-use or residential ones. Land near closed malls, warehouses, and business parks is becoming places where homes could be built.
These changes aren’t just ideas; they directly lead to higher demand and prices for land that fits updated rules or is in redevelopment areas.
Technological Tools Redefining Land Acquisition Strategy
One of the things that is changing land buying a lot in 2025 is the set of high-tech tools investors can use.
Artificial Intelligence in Land Analysis
AI tools look at huge amounts of data—like zoning maps, population growth, school ratings, and even social media—to rate land parcels. The rating is based on how likely they are to be built on and go up in value. This helps investors make decisions based on data, and they can do it faster than ever.
Geographic Information Systems (GIS)
GIS tools let investors see how close land is to things like services, transit, see flood risk, soil quality, and how neighborhoods are growing. They can see all this without ever visiting the land. Smart users can find the best areas to buy land before properties are even listed.
Drone and Satellite Imaging for Due Diligence
Modern drone technology lets investors check things on the surface like how high the land is, plants, and if utilities are nearby. Before, this needed someone to check the land in person. Satellite data gives a bigger picture view, like how water drains, areas likely to catch fire, or info about flooding at different times of year.
The result? Fewer bad buys, faster planning, and greater efficiency when evaluating land deals.
Land as Protection in an Uncertain Real Estate Market
While buildings like houses or offices change value depending on interest rates, how much rent grows, and repair costs, land often acts differently. It offers both simplicity and holds up well.
Low Overhead
Land owners don’t have to deal with ongoing repairs, upkeep, problems with tenants, or insurance payments that come with buildings. This simple way of owning makes it easier to wait for the right time to build or sell.
Lower Holding Costs and Taxes
In most states, undeveloped land has fairly low property taxes. There are no buildings to insure or lose value over time. This makes owning it much cheaper than owning homes or business properties.
Flexibility Over Time
Land doesn’t lose value over time like buildings. How it’s used can also change as the market changes. Land used for farming today might become a neighborhood or a solar farm tomorrow.
When the economy is uncertain, this ability to change makes land a solid and important part of a varied set of investments.
What Types of Land Are Performing Well in 2025?
Some types of land are doing better than others based on what the market wants now and what is expected later
Raw Land Near Growing Suburbs
Areas near cities like Phoenix, Charlotte, Tampa, and Las Vegas are getting more people moving in. Investors are buying up raw land quickly because they expect more homes to be built. This is especially true near planned communities or places like transit stops or major road junctions.
Agricultural Land With Urban Expansion Potential
Farmland within city growth limits, or in counties expected to have zoning changes, is being bought aggressively. This is especially true when it has water rights and is near transportation projects.
Infill Lots in Redevelopment Zones
Lots inside city limits that are not being used fully are being bought a lot for townhouses, duplexes, and ADUs. This is happening as cities make zoning rules easier. These plots are easy to miss but are wanted more and more because they already have infrastructure and are in established areas.
Parcels Near Infrastructure Expansion
The Infrastructure Investment and Jobs Act is paying for new roads, transit lines, and utilities. This is increasing land value along those areas (White House, 2023).
Well-located land next to new infrastructure being built can go up in value quickly over short times. This makes it a perfect thing for buyers who want to build.
Las Vegas Spotlight: Local Opportunities & Zoning Trends
Las Vegas has become one of the most active land investment markets in 2025. This is because its population keeps growing, zoning keeps changing, and it is planning for the future in a way that can last.
Hot Neighborhoods to Watch
Local real estate broker Steve Hawks says Henderson, Summerlin, and North Las Vegas are great areas. This is because their infrastructure is growing and wealthy buyers are interested. These areas have new shopping centers, schools, and public facilities. These are all signs that land value is going up.
Mixed-Use Development Zones Rising
Las Vegas continues to support building many units in one area and mixed uses. This gives more options for building on a single piece of land. Especially in areas next to The Strip or near new sports and tourism places, land can be used for many things (homes, stores, hotels). This makes great chances for investors.
Environmental Planning Adds Value
Because there is not much water in the area, zoning officials are putting low-impact and long-lasting buildings first. Smart land planners look for land with existing water rights or land that is likely to benefit from future environmentally friendly infrastructure.
Infill and Redevelopment in Core Zones
Older neighborhoods near transit stops are being updated with new homes and businesses. City rules support this. Investors looking at these infill lots often have fewer problems getting approval to build.
Las Vegas shows how rules, where people move, and technology make land value go up. It gives a look at how this might happen in the future.
Challenges in Land Investment and How to Deal With Them
Despite its advantages, land investment needs a careful plan.
Regulatory Complexity
Even with zoning changes, getting permits is very different from place to place. Some land purchases might be delayed for a long time if they are not checked correctly to see if they meet rules and plans.
Environmental and Legal Restrictions
Wetlands, protected animal areas, conservation rules, or utility lines can all stop or limit building. Some land might have agreements or debts recorded on it that make owning or using it harder.
Market Liquidity and Holding Time
Land usually goes up in value over time but doesn’t make regular money. This makes it not good for investors who need to make money back quickly. Selling it can also take longer than selling a house.
Strategy for Dealing With Challenges
Working with local brokers, land planners, lawyers, and survey teams can lower these risks. Investors should also focus on basic market facts: if utilities are available, zoning rules, population growth, and what buyers or developers plan to do.
The Rise of Land Syndication and Crowdfunding Platforms
New ways are making land investing easier to get into
Crowdfunding for Non-Accredited Investors
Platforms like AcreTrader and FarmTogether let people buy small parts of land assets. This makes it easier for more people to get in and costs less than buying land used to.
Land Syndication Funds
Syndicated deals let small groups of investors together pay for buying large pieces of land. This could be like a 100-acre piece near growing cities. Professional managers deal with getting building approvals and planning how to sell.
Advantages of These Models
- Spreads out investments
- Lowers risk for each person
- Lets you invest in land that can make money without doing the work yourself
For new investors, these platforms offer a way to try out land investment without starting to build yourself.
Real Estate Investing vs. Land Investing in 2025: Which Is Better?
Each strategy has strengths, but here’s a 2025-specific breakdown:
| Factor | Real Estate Investing | Land Investing |
|---|---|---|
| Cash Flow | Immediate through rent | Typically none |
| Management | High (tenants, repairs) | Low |
| Entry Cost | Moderate to high | Low to moderate |
| Appreciation Timeline | Medium-term | Long-term |
| Tax Benefits | Depreciation, 1031 | Minimal, some 1031 |
| Risk Profile | Income offsets risks | Higher if held passively |
Smart investors often use both approaches. A balanced set of investments might have 60% buildings and 40% long-term land for the best growth and protection against risk.
Looking Ahead: Trends Through 2030 for Smart Investors
Planning beyond just 2025? Consider adding investments while thinking about the next ten years
Urban Expansion and Mega-Regions
As regional cities link up to form connected economic areas (like Dallas-Fort Worth, Raleigh-Durham), land along important connecting areas becomes very valuable.
Green Energy and Sustainable Land Uses
Land that meets environmental goals (like zoning for solar, saving water) will go up in value. This is especially true in states that require measuring environmental impact and building strong buildings.
Tech Infrastructure and Smart Cities
Smart cities are becoming more common. Land close to fiber-optic cables, areas with many electric vehicle charging stations, or high-speed rail lines may go up in value faster than normal areas farther out.
Flexible Zoning and Live-Work-Play Demand
Zoning rules will allow more and more live/work spaces, very small homes, and neighborhoods built from factory-made sections. This makes it profitable to use smaller or odd-shaped lots again.
Is Land Worth Your Money in 2025?
Absolutely—if done with a plan. Land investing in 2025 is helped by bigger market trends, better data, and better rules than ever before. But like all investments, you need to check things carefully, act at the right time, and plan smartly.
Choose locations that match where people are moving and where policy is changing. Buy before demand goes up quickly, and hold long enough to make money. You’re not just buying a piece of land that doesn’t change. You’re buying into future infrastructure, how communities change, and the American housing situation.
Thinking about land as part of your investments? Las Vegas has special chances in 2025—and no one knows this area better than Steve Hawks. Contact Steve today for advice from an expert on where to invest next.