WILL 2020 FORESHADOW A BOON IN
RURAL LAND SALES? BY GREG FAY FOUNDER/BROKER FAY RANCHES
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irus-related lockdowns, economic devastation, prolific government spending, and social unrest have ushered in the new decade. Significant changes are happening at lightning speed, and trying to make sense of how this all ends is difficult and so far a bit counterintuitive. For families across the country, there is more uncertainty than ever. But interestingly, based on the unprecedented market for land over the summer months, it appears we are in the beginning stages of a bull market for farm and ranch sales in the U.S. Under normal circumstances, oil dropping to under $0/barrel and unemployment spiking to over 10% would not favor rural land sales. When the lockdowns began, deal flow initially slowed down, with most people hunkering down and staying at home. As our communities began to reopen, there was a tremendous surge in interest in land investment. Fay Ranches and Republic Ranches agents and our competitors noticed the trend as investors looked at land as both the tangible and stable investment it has been for decades and a great, safe place to escape with their families. Now that we have had time to study this in-depth, we believe that we are seeing two significant impetuses for increasing rural land sales for the second half of 2020. This will likely continue into the coming years as more money shifts into land investment.
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The first major shift is a migration from urban centers to more rural settings as families look for safety and social distancing
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BY JEFF BOSWELL PARTNER/BROKER ASSOCIATE REPUBLIC RANCHES
while still enjoying their lives. People are realizing the tremendous value of being able to enjoy the outdoors away from others. More people are taking up hunting, fishing, camping, and other outdoor pursuits to pass the time and realize they really enjoy these hobbies. Nothing is stopping another pandemic from happening in the future, and if we learned anything this time, the best way to stay safe and healthy is to find distance from others while still doing things that make us happy and keep us sane. The second shift is in investment strategy. At the beginning of the lockdown, almost everyone who had a second home on a ranch, at a beach, or just on some acreage moved there to get away from cities. Many are realizing they prefer it. With so little left to do in urban centers, those who did not have access to a home outside of the cities started wishing they did, which is one reason we have seen such an uptick in rural land and ranch sales. Many companies have shifted to a work from home model and quickly realized that their employees could successfully work from home while still being productive. This pandemic reshaped the way we, as a society, look at work structure. Not only do we have the tools and technology to work from home and still stay connected and productive, but potentially the operating costs for companies could be much lower if they continue some version of this in the future. The trend will likely continue on some level, giving employees more flexibility to move where they want, which these