Iowa Farm Land Values

There has been a lot of talk lately about Iowa Land Values . The National Association of Realtors put together the chart and map below showing the increase of our land values and our state’s unemployment rate. We are actually better off than many other states nationally. I thought I would just show you the recent trends. If you want to know local land prices, contact me today!!

Iowa State University recently released land value trends in its state. The lag time between data release and conditions is almost a year, but the underlying trend is quite dramatic with land prices in many counties rising by double-digit percentage gains in 2010.

This report is consistent with the Federal Reserve Bank of Chicago report on agricultural land price trends, which we noted back in November. Though 2011 data has not been published by either organization, I am inclined to believe further gains occurred this year based on my anecdotal conversations with people from the Midwest farming areas.

Furthermore, jobs have been added to the state in the past year, though the total jobs are below the peak level in 2008. The state’s unemployment rate of 6.0 percent is well below the national average. Given these conditions, the important question is how the land value and job conditions will impact the caucus outcome in Iowa next month.

Lawrence Yun, Chief Economist

Lawrence Yun is Chief Economist and Senior Vice President of Research at NAR. He directs research activity for the association and regularly provides commentary on real estate market trends for its 1 million REALTOR® members.