Is Now a Good Time to Buy Land in Alabama?

This content has been updated as of December 2025.

A Guide to Land Prices in Alabama

Alabama is top-of-mind for individuals and families in the market for land. With its rich agricultural heritage, growing rural appeal, and steady property values, Alabama remains a sought-after destination for land buyers. Despite economic fluctuations, land has proven to be a stable long-term investment, offering opportunities for farming, recreation, and future development.

Before settling in for a search, it's essential to understand what to expect: How much does an acre of land cost in Alabama? Is now the right time to buy? Which areas offer the best value?

How Much Does an Acre of Land Cost in Alabama?

Land values in Alabama vary significantly based on region, land use, and market trends. The total number of land sales in 2025 increased by 17.94% (over 2024 sales volume) and the value per acre remains strong. Some areas are experiencing price dips, while others continue to appreciate.

Overall, Alabama's land prices increased 5.27% year-over-year, reaching an average of $3,645 per acre statewide — a new high for the state.

Location plays a significant role in land pricing, with some regions proving more resilient than others. Here’s a closer look at the range of land values across Alabama:

• Baldwin County: Prices range from $2,500 per acre to as high as $35,135 per acre.
• Coffee County: Sales as low as $1,944 per acre have been recorded, with a high of $10,538 per acre.
• Montgomery County: Prices vary from $1,165 to $5,722 per acre.
• Perry County: Sales have been recorded as low as $1,471 per acre and as high as $4,325 per acre.

Why Are Alabama Land Prices Holding Steady?

Several key factors contribute to the stability of Alabama’s land market:

1. High Demand for Rural Properties. Interest in rural land for farming, recreation, and investment continues to drive demand.
2. Limited Supply. Because land is a finite resource, values remain strong even as availability decreases.
3. Population Growth and Housing Development. Expanding metro areas are increasing the demand for land near key growth corridors.
4. Diverse Land Use Opportunities. Many properties offer timber, hunting leases, agricultural production, or future development potential, all of which add to their value.

Is Now a Good Time to Buy Land in Alabama?

While real estate markets fluctuate, land in Alabama continues to appreciate as a long-term investment. Although 2024 saw a decline in total sales volume, sales volume picked up again in 2025 while per-acre prices remain strong. The five-year growth rate in Alabama’s farmland values has been consistent, making land a solid investment for those willing to hold onto it.

If purchasing land in Alabama is high on the 2026 to-do list, it’s important to research specific market trends, secure financing, and evaluate intended land use. Alabama Ag Credit offers financing solutions tailored to land buyers to help them make informed investment decisions.

Alabama land exhibits a range of opportunities to meet a variety of land-use needs, so contact an Alabama Ag Credit lender near you for help taking the next step toward owning farmland, a recreational retreat, or a long-term investment

For a comprehensive guide on purchasing land, read our article on how to buy a farm or land in 5 steps.