The Lay of the Land Market Report remains the definitive authority on Alabama land values.
MONTGOMERY, AL (May 15, 2026) – Alabama’s land market continued to generate strong transaction activity in 2025, but the forces driving value are becoming increasingly segmented. New data from Saunders Land’s inaugural Lay of the Land® Market Report shows recreational demand, development pressure, and multi-use flexibility continuing to support pricing across much of the state, even as agricultural buyers faced tighter margins and elevated borrowing costs.
Alabama land values are increasingly being shaped by location, property characteristics, and long-term use potential.
“Buyers today are looking much deeper at how a property fits into their long-term goals,” said Tyler Davis, President of Saunders Real Estate. “Properties with strong recreational appeal, infrastructure, accessibility, or future development potential are continuing to separate themselves in the market.”
Powered by Saunders Real Estate’s proprietary Atlas platform, the report compiles verified land transactions across Alabama that closed in 2025, offering one of the most comprehensive looks at statewide land trends heading into 2026.
Recreational Land Continues to Drive Demand
Recreational land remained one of the strongest-performing segments of Alabama’s land market in 2025. Over 400 verified hunting and recreational land transactions accounted for more than 84,000 acres and over $269 million in sales volume statewide.
Average pricing reached approximately $3,400 per acre, supported by continued demand for properties offering hunting opportunities, privacy, timber value, and long-term recreational appeal.
Inventory for well-managed recreational tracts remains limited, helping sustain pricing as buyers continue seeking properties with established wildlife habitat, internal road systems, and multi-use potential.
Farmland Holds Firm Despite Agricultural Headwinds
Alabama’s farm and cropland market remained stable throughout 2025, even as agricultural margins tightened due to softer commodity prices and elevated input costs.
Across the state, 88 verified farm and cropland transactions totaled more than 13,000 acres and nearly $69 million in sales volume, averaging roughly $5,300 per acre statewide.
Demand remained strongest for highly productive farms with quality soils, irrigation, and operational efficiencies. Many buyers also continued pursuing properties offering recreational or investment crossover appeal, helping support values despite broader agricultural challenges.
The Lay of the Land Market Report reveals that interest in Alabama farms has expanded beyond traditional agricultural returns, with buyers placing greater value on properties that offer additional uses like hunting, timber, or a potential homesite.
Pastureland Continues Attracting Multi-Use Buyers
Alabama’s pastureland market remained active throughout 2025, supported by continued demand for properties offering both agricultural and recreational utility.
Across the state, 90 verified pastureland transactions totaled more than 12,700 acres and over $60 million in sales volume, with statewide pricing averaging approximately $4,700 per acre.
Many buyers continued targeting properties capable of supporting cattle operations, hunting, rural residential use, and long-term investment potential. Improved pasture tracts with existing infrastructure and multi-use flexibility continued attracting strong interest throughout the year.
Limited inventory of quality pastureland helped support stable pricing across much of the state heading into 2026.
Timberland Remains a Long-Term Investment Play
Timberland sales remained consistent statewide in 2025, with approximately 45,000 acres of verified timberland transactions averaging just over $2,000 per acre.
While the forestry industry continues facing pressures from supply imbalances and softer wood product demand, long-term investor confidence remains steady. Alabama’s extensive privately owned forestland base and continued mill investment announcements have helped support market stability heading into 2026.
Transitional Land Continues to Outperform
Transitional land remained one of the highest-value segments of Alabama’s land market in 2025, driven by growth around Huntsville, Birmingham, Montgomery, and the coastal markets of Mobile and Baldwin County.
Across 61 verified transactions totaling over $62 million in volume, statewide transitional land values averaged more than $25,000 per acre.
Properties positioned along key growth corridors such as I-65, I-85, I-10, and I-565 consistently achieved premium pricing, particularly where zoning and infrastructure were already aligned for future residential, commercial, or industrial development.
At the same time, widening pricing differences between development-ready tracts and properties requiring longer entitlement timelines reinforced a growing divide in the market.
Unlike traditional asset classes, transitional land is valued on future use, with pricing primarily determined by location, infrastructure, and zoning, or the ability to achieve a higher and better use.
A Market Increasingly Defined by Flexibility
Across all land categories, the report highlights a common trend: Alabama buyers are increasingly prioritizing flexibility and long-term usability.
Many of today’s buyers are evaluating land through multiple lenses at once, considering recreational value, agricultural productivity, timber income, residential potential, and future appreciation simultaneously. Properties that offer several of these characteristics continue attracting the broadest buyer pools and strongest pricing.
At the same time, buyers are underwriting more conservatively, placing greater emphasis on infrastructure, accessibility, layout, and long-term utility. Alabama’s land market remains highly active, but success is becoming increasingly tied to strategy, property quality, and positioning.
As 2026 progresses, understanding how different land uses intersect, and how demand varies by region and asset type, will continue shaping both pricing and transaction activity across the state.
You can access the full Lay of the Land® Market Report below.
DOWNLOAD THE alabama MARKET REPORT
About Saunders Real Estate
Saunders Real Estate is a leading land and commercial real estate brokerage serving buyers, sellers, investors, and landowners across the Southeastern United States for 30 years. With over 100 advisors and offices in major U.S. markets including Alabama, Arkansas, Florida, Georgia, and North Carolina, we specialize in large-acreage land transactions, commercial property sales and leasing, and property management.
To reflect our legacy and continued growth, Saunders Real Estate operates through two divisions – Saunders Land and Saunders Commercial. Our expertise spans agriculture, conservation, recreation, residential development, and commercial real estate, supported by specialized services such as forestry, land management, and investment acquisitions.
Today, Saunders Real Estate is recognized as a trusted authority in the region, delivering exceptional results through experienced leadership, innovative strategies, and a client-focused approach.