How to Use the Heat Map for Market Research

Choosing the right market is an important part of land investing, but comparing counties or ZIP codes one at a time can make it difficult to see where the strongest activity is happening.

The Heat Map in Land Portal gives you a visual way to compare market data across different areas. You can analyze metrics like days on market, median price per acre, months of supply, and sales activity while adjusting the acreage range and other criteria to fit the type of land you're targeting.

In this article, we'll walk through how to use the Heat Map in Land Portal to research and compare land markets.

Step by Step Walkthrough

1. Login to Land Portal

Login to Land Portal and select Market Research from the left side menu.

This will open the Market Research tools, where you can access the Heat Map.

Note: Some tools and filters are only available on certain plans. See Plans & Pricing for what’s included in your subscription.

By default, the Heat Map displays data by county using sold land properties across all acreage ranges. The map colors will change based on the metric you're viewing, allowing you to quickly compare different areas.

2. Choose an Area to Research

Rather than comparing the entire country at once, start by narrowing your research to a state or region you're interested in.

Zoom into the area on the map to view the individual counties.

The color scale in the bottom left shows areas from High to Low based on the statistic you currently have selected.

As you change your filters or statistic, the Heat Map and color scale will update to reflect that data.

From here, you can begin changing the Heat Map metric to compare different market conditions across those counties.

3. Compare Days on Market

One useful metric to start with is Days on Market.

Select Days on Market to see how long properties are typically staying on the market in different areas.

When viewing this metric, greener areas represent lower days on market, while redder areas represent higher days on market.

You can click or hover over individual areas to view the underlying data and compare markets more closely.

Lower days on market can help identify areas where properties are moving more quickly, but this should be considered alongside other market data rather than used on its own.

4. Adjust the Acreage Range

Before comparing markets, adjust the acreage range to match the types of properties you're actually targeting.

For example, if you're interested in properties between 2 and 50 acres, set your minimum acreage to 2 and maximum acreage to 50.

Once you apply the acreage range, the Heat Map data and colors will adjust.

This is important because properties outside your target acreage can influence the overall market numbers. Narrowing the range allows you to analyze data that is more relevant to your investment criteria.

The acreage range you choose will depend on your individual strategy.

5. Review Median Price Per Acre

Next, switch the Heat Map metric to Median Price Per Acre.

This allows you to compare typical land pricing across different areas.

You may also want to adjust your acreage range again when analyzing price per acre so you're comparing properties that more closely resemble the type of land you plan to buy.

For example, the walkthrough narrows the range to 3 to 7.5 acres when comparing median price per acre.

Click or hover over different areas to see the median price per acre and compare pricing between markets.

Your ideal price range will depend on your investment strategy, so use this data to identify markets that fit the types of deals you're looking for rather than relying on one universal target.

6. Compare Months of Supply

Another useful Heat Map metric is Months of Supply.

Months of supply estimates how long it would take for the current inventory to sell if no additional properties were listed for sale.

This can give you another way to understand the balance between available inventory and sales activity in a market.

In the video example, the acreage range is returned to 2 to 50 acres before comparing months of supply.

Review this metric alongside days on market and pricing to build a more complete picture of what's happening in each area.

7. Switch From Counties to ZIP Codes

Once you've identified a county that interests you, you can make your research more specific by changing the Heat Map from County to ZIP Code.

This allows you to compare activity within individual ZIP codes instead of treating the entire county as one market.

Some parts of a county may have significantly more sales activity than others. Looking at ZIP codes can help you identify where transactions are occurring and eliminate areas where there may not be enough activity for the properties you're targeting.

You can also switch to Count to see how many qualifying properties have sold within each area.

8. Adjust the Time Period

You can also change the time period used for your market data.

For example, instead of looking at activity over the last year, you can narrow the data to the last six months to get a more recent look at what's happening in the market.

Keep in mind that narrowing the time period may result in less data, especially in markets with fewer transactions.

Try different time periods depending on how much activity is available and how recent you want your market research to be.

Use Multiple Metrics to Understand a Market

The Heat Map is most useful when you don't rely on a single number to choose a market.

Days on market can help you understand how quickly properties are moving. Median price per acre provides insight into pricing. Months of supply can help you evaluate current inventory, while Count shows you where transactions are actually happening.

You can then adjust the acreage range, time period, and geographic level to make those metrics more relevant to your specific land investing strategy.

By comparing these data points together, the Land Portal Heat Map gives you a faster way to narrow down markets and identify areas that may be worth researching further.

Ready to explore potential markets? Login to Land Portal, open Market Research, and use the Heat Map to compare market activity based on the properties you're targeting.