Water market activity in 2025 reflected stable economic and generally dry hydrologic conditions across most of the West. Overall trading volume was down slightly but prices remained high, particularly for water leases. Housing development continued to experience a slowdown, causing a drop in the average sales price in many metro regions including the Colorado Front Range and Southern Nevada. Water prices climbed modestly in regions experiencing rapid economic development and long-term supply constraints, particularly in Texas and Arizona. Agriculture faced weak forage and fruit prices, rebounding nut prices, drier conditions, and high farm debt, resulting in a variable price response for water. The loss of water reserves and influx of government funding sparked new water markets in Arizona, Texas, Utah, and Nevada. With much drier conditions and a turn in the housing market on the horizon for 2026, we expect to see greater market activity and higher prices in the coming year.
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