Understanding realistic returns from raw land investments, including appreciation rates, holding costs, and how to maximize ROI on undeveloped parcels.
According to LandSquatch data covering 198,170+ properties across Georgia and Florida, understanding raw land investment returns is essential for making informed land investment decisions.
Raw land historically appreciates 3-8% annually on average, but returns vary dramatically by location. Parcels in growth corridors near expanding metro areas can appreciate 10-20% per year. According to LandSquatch data covering 198,170+ properties, the best-performing parcels share common traits: proximity to infrastructure, favorable zoning, and strong Buildability Scores.
Land typically offers lower annual returns than equities (8-10% historical average) but with less volatility and no management overhead. Unlike rental properties, raw land has minimal holding costs — just property taxes and possibly insurance. The tradeoff is illiquidity; selling land takes longer than selling stocks.
Annual property taxes (typically 0.5-2% of assessed value), liability insurance, potential HOA or maintenance fees, property surveys, and periodic inspections. Some counties also charge for road maintenance or fire protection. Factor these into your ROI calculations before purchasing.
LandSquatch is part of the Guerilla Finance Inc. ecosystem of data-driven tools built for retail investors.