Reflections on the 2025 Land Market: A Year of Strength and Surprises, Chris Miller, ALC-Managing Director, Real Estate Services

As someone who tends to look forward more than back, I don’t often dwell on the past. But in the land business, staying observant and nimble is essential — and 2025 gave us plenty to pay attention to. Looking over the past year, four words rise to the top: Strong. Durable. Uncertain. Unexpected.

A Market That Defied Expectations

After a historic sales year in 2024, many of us anticipated some cooling in 2025. Instead, the momentum continued — and in many ways, accelerated. Our firm closed a record number of individual land transactions across our 19-state operating footprint this year.

Demand was strong, especially in the U.S. South which continues to see population growth and migration that drives demand, Maine and the Lake States stayed active where land prices are less expensive and recreational attributes are abundant, and the Pacific Northwest also showed strength in timberland, with so much public land, recreation is not as large a value driver as other parts of the US. Listings nationwide moved quickly: average days on the market stayed under 60 days, a testament to strong buyer interest with values appreciating to stable.

Why 2025 Should Have Been Slower — But Wasn’t

By most traditional indicators, 2025 shouldn’t have been a banner year for land sales. Consider the headwinds:

- Election-year caution from investors

- Market volatility and uncertainty following Liberation Day and subsequent tariffs

- Persistently high interest rates

- One of the most challenging farm economies in decades

- Closure of multiple pulpwood mills across key timber markets

Any of these factors could have softened activity. Combined, they should have created significant drag. Yet the opposite happened. Land proved durable.

The Safe Haven Effect

What became abundantly clear this year is that investors view raw land — especially timberland, farm, and ranch properties — as a stable, reliable refuge in uncertain times. Land is finite, tangible, and less volatile than other asset classes.

But beyond its financial resilience, land offers something more:

- Recreation and lifestyle value

- Climate and conservation benefits

- Wildlife habitat and natural diversity

- Long-term potential through higher and better uses

This unique combination insulated land values among all the options investors have. The stock market stayed strong due in large to the boost from AI to the technology sectors, these strong personal balance sheets lead many to want to diversify their holdings into land real estate. This outcome was unexpected, and it exceeded our initial expectations.

Business Built on Trust and Long-Term Thinking

At AFM Real Estate, we are grateful for the hundreds of clients who trust us to help them buy and sell property each year. Working in the land industry is both our passion and our privilege.

Landowners bring a refreshing mindset. They think in decades, not months. They look past short-term noise and focus on long-term outcomes — sometimes generational ones. That perspective grounds our work and keeps us motivated.

Looking Ahead to 2026

As we move into 2026, we do so with optimism. Regardless of what challenges or curveballs the coming year may bring, one thing remains certain:

The land will endure. The trees will keep growing. And the value of thoughtful stewardship will continue to stand the test of time.

Continue to visit our blog for the Land Market Outlook for 2026 in January.