Why the Market for Luxury Ranches Continues to Grow?

Written by Posted On Sunday, 14 July 2019 12:05

ranch sale

High-end real estate in cities such as New York and Miami might be slumping, but one niche that continues to grow is the luxury ranch market. According to sources, demand is being driven by several factors, including the number of affluent clients seeking remote real estate and the lack of "inter-mountain ranches." Many luxury ranch and farmland agents note the shift; the demand for luxury ranches has been rapidly snowballing over the last decade.

These “luxury” ranches are nothing like ranches in the wild-west days. Except for the horses, cattle, and sheep, these ranches – even when they are working farms – have everything one could want in a luxury home California ranches for sale have been booming in the last year.

Today’s luxury ranches have theatre-sized entertainment rooms, gyms of NFL stadium standards, massive kitchens, and more bed and bath amenities than you might have thought possible. Just like the American West, these ranches are expansive; and in some cases, calling them ranches does not do them justice, as some are towns onto themselves.

However, this doesn’t mean that buyers are priced out of the market, at least not yet. For those perusing the ranks of ranches for sale, there is just about something for everyone on the market these days.

This ranges from “starter ranches” on just a few hectares adjacent to public land, sprawling ranches that needed to be modernized, and those which have already been decked out – even some that have their a private landing strip on the property. After all, the buyers of these properties rarely fly commercial.

Why does the market continue to grow? According to those in the know, it is a combination of factors. These include affluent buyers wanting a place to relax and unwind. While other buyers are more interested in going "off the grid."  

Moreover, some view luxury ranches not only as a getaway but also as an investment. For those seeking high-end real estate, having a ranch is a great way to earn a return on capital while having a place to either call home or for the occasional visit.

In addition, from an investment standpoint, in recent months buying low for live cattle and hog farmland has fallen. However, some analysts expect the current epidemic of African Swine Flu in China to place upward pressure on meat prices around the world.

After all, China’s 1.3 billion inhabitants represent the largest market for agricultural products in the world.

This points to a massive profit potential for investors who not only want a luxury ranch but who can also afford to keep it running as a working farm. However, one limiting factor is an age-old issue in the West – water.

Access to water has become so critical in the West that savvy sellers have been busy upgrading the amenities on their ranches in recent years to attract buyers who are more interested in the ranch as a getaway than as a working property.

This means that prices should continue to climb over the near-term with some buyers eventually being priced out of the market. As such, anyone who has an interest in owning a ranch (working or otherwise) should consider taking the leap before the best properties are off the market for good.

Just remember that when a ranch is sold, it's likely to remain off the market for decades if not longer. The inventory of ranch land for sale has been falling quickly as billionaires and centimillionaires have also been busy buying up multiple ranch holdings to cobble together mega-ranches.

In 2016, the owner of the Los Angeles Rams purchased a Texas mega-ranch for the sum of $725 million. Note this was at the same time that he was planning to move the team back to Los Angeles, and it points to the investment potential that Mr. Kroenke saw in the property compared to his football team.

What is the future for luxury ranch properties? At this point, the sky is the limit – especially as available inventory continues to shrink.

Here in lies the distinction between luxury ranches and other high-end real estate investment opportunities; it is impossible for a developer to build a luxury ranch in the same way they can build an apartment in a major city of a golf resort.

As such, luxury ranches might be one aspect of the high-end real estate market that truly is bubble-proof. Only time will tell, but given the limited number of buyers and the available properties, this is highly likely.

Rate this item
(0 votes)
nick marr

Nick Marr has been operating real estate websites since 1999 and has written hundreds of articles for numerous publications including Huff Post and The Independent Newspaper. He works with thousands of home sellers and real estate agents from over 40 countries worldwide and provides a unique insight into the international real estate sector. 


Agent Resource

How to capture your next prospect - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.