Across Wisconsin and Minnesota, the recreational land market is booming, fueled by demand from buyers within a short drive of the region, according to Weiss Realty.
Owner and broker Chad Garteski says in Western Wisconsin, for example, many are coming from Eau Claire, Madison, Milwaukee, and the Twin Cities — close enough to slip away for a weekend but far enough to feel like an escape.
He estimates about 70 percent of buyers are seeking weekend getaways, while 30 percent intend to live on their land permanently or in the future, a trend that’s grown since the COVID-19 pandemic.
Buyers are typically working-age professionals between 45 and 65, Garteski says, often entrepreneurs or business owners, many of whom are reinvesting proceeds from selling their companies. Prices reflect the demand. Wooded hunting land in Buffalo County can fetch $8,000 to $10,000 per acre, while much of western Wisconsin averages $5,000 to $6,500 per acre. Just five years ago, that same land was closer to $3,500 per acre, he notes.
Garteski adds that recreational land has steadily appreciated over the past 10 to 15 years. Many buyers now view it like a collectible asset, often trading up through 1031 tax exchanges or a “like-kind exchange.” This is a strategy allowing investors to defer paying capital gains taxes on the sale of an investment property by reinvesting the proceeds into a “like-kind” property.
“It’s definitely become more of a commodity,” he says, noting that about 30 percent of his business now involves such exchanges.
On the seller side, Garteski says land listing decisions often come down to life changes, such as after receiving a difficult medical diagnosis or no longer being able to maintain rural properties.
Government policies also influence land sales in mixed ways. Programs like Wisconsin’s Managed Forest Law can lower property taxes, making them attractive to first-time buyers, though Garteski notes long-time landowners sometimes dislike the restrictions. Conservation programs like CRP can provide extra income but may also push up purchase prices. Meanwhile, interest rates haven’t played as large a role in land transactions as they have in the housing market, he says, since many land buyers are in stronger financial positions.
For prospective buyers, his advice is simple — don’t wait, and put some chips on the table.
“Get in as soon as you can afford to, and get in at an affordable amount. If that’s 10 acres or 20 acres, jump in,” Garteski says. “Everyone keeps saying, ‘Well, it just keeps getting more expensive, it keeps getting more expensive.’ The only way to beat that is to have that investment on your side and growing.”
Once seen as a slow-moving, illiquid asset, recreational land has become much more dynamic, he explains. Thanks to online listings and digital transactions, well-priced properties often sell in weeks, not months. That has given buyers more confidence that land can serve both as a lifestyle purchase and a flexible investment, Garteski says.
“It’s a great way to mix up your investment portfolio. It’s become much more of a liquid asset.”
