When people think of investing in real estate, they often picture rental houses, commercial buildings, or vacation rentals. But there’s another strategy that has quietly been making millionaires for decades: land banking.
What is Land Banking?
Land banking is the practice of buying land in the path of future growth, then holding onto it until demand skyrockets. Instead of rushing to develop or flip the property, investors “bank” the land, often for years, as nearby infrastructure projects, population growth, and city expansion increase its value.
Why It Works in 2025
- Urban Sprawl: As cities like Nashville, Dallas, and Phoenix continue to grow, surrounding rural land is being eyed for development.
- Infrastructure Projects: Highways, airports, and industrial parks often transform farmland into high-demand land almost overnight.
- Low Carrying Costs: Compared to owning rental units, vacant land typically has lower holding costs (taxes, minimal maintenance, no tenants).
How to Start Land Banking
- Identify Growth Corridors – Look at counties adjacent to fast-growing cities.
- Research Zoning and Plans – Check county development plans to see where new roads, schools, or utilities are planned.
- Buy Below Market Value – Work directly with owners, not just through retail listings.
- Hold with Patience – This strategy works best for investors who can hold for 5–10 years.
Land banking isn’t a get-rich-quick scheme — it’s a long-term wealth builder. And in 2025, with America’s housing shortage and infrastructure spending at historic highs, land banking has never looked better.

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