An Econometric Analysis of Alabama Rural Land Values

Abstract

Dramatic changes in rural land values played an important role in regional, social, economic, and environmental development. The ability to understand and predict these changes is necessary for the effective design of environmental, public finance, and urban growth management policies. Surveys of landowners and real estate professionals were used to determine changes in 2009 Alabama rural land value, and the major determinants that influence how small private nonindustrial landowners value timberland in Alabama. A hedonic price model and other statistical methods were used to evaluate the survey data set. Results from this study determined that there were declines in Alabama rural land values during 2008 but large increases in the last ten years. Additional results indicated that road frontage, bodies of water, tract size, distance to the nearest urban areas, and age of the stand had significant effects on timberland values per acre.