Cheapest States to Buy Land (2026)
Last updated 09/18/2024 by
Benjamin LockeEdited by
Cara CoreySummary:
Land prices vary significantly across the United States. While coastal states tend to have higher land prices, states in the Midwest and South offer more affordable options. This article delves into the 10 cheapest states to buy land, providing insights into median prices per acre and factors influencing these prices.
Purchasing land is a significant investment, and the cost can vary widely depending on the state where you buy it. Land, in general, is considered speculative, so it’s important to understand cost and budget before you dive into the world of buying raw land. Different states will have different prices of land for various reasons. Farmland, in particular, has hit record highs since the pandemic. Here is a guide to the cheapest states to buy land.
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Land prices nationwide
Below is a map of the median land prices per acre nationwide.
The cheapest land all-stars
You may be able to find land for a reasonable price in these states.
Arizona
With a median price of $4,164 per acre, Arizona stands out as the state with the cheapest land in the United States. The vast desert terrains and diverse landscapes, from plains to mountainous regions, make Arizona an attractive destination for land buyers.
New Mexico
Following closely is New Mexico, with land going for a median price of $6,000 per acre. The state’s vast rural areas and lower population density contribute to its affordability.
Mississippi
Mississippi ranks third with a median land price of $10,835 per acre. Its primarily rural nature and lower cost of living make it an appealing choice for potential landowners.
Colorado
Colorado offers land at a median price of $11,561 per acre. The state’s diverse geographical features, including mountains and high-altitude areas, might limit land use options, making it more affordable.
Arkansas
Arkansas, with a median price of $11,596 per acre, ranks fifth. Its predominantly rural nature and diverse landscape contribute to its affordability.
Other notable states
Other states in the top-10 list include New York, Missouri, Oregon, Alabama, and Michigan, with median prices ranging from $12,027 to $18,333 per acre.
Pro Tip
In some cases, you might even be able to get land for free if you plan to build a home or business there. Look for homesteading programs in your city or state.
Tips on buying land
Buying land shouldn’t be done blind. Here are some tips:
| Tips for Buying Land | |
|---|---|
| Research the Area: | Before purchasing land, research the area. Understand the median prices in the state you’re considering. |
| Consider the Purpose: | If building a new home, some states have more undeveloped land. This could be beneficial for a fresh start. |
| Look Beyond City Limits: | Cities may have high property values, but looking beyond can offer more affordable options. |
| Understand the Land’s Potential: | Some land might be zoned for specific purposes. Ensure you’re aware of the land’s zoning before purchasing. |
| Check for Natural Resources: | Some states have protected areas, limiting available and livable land due to various factors. |
| Consider Future Developments: | Consider future developments in the area, as it might influence demand and prices. |
| Consult Local Experts: | Consult with local real estate agents or experts familiar with the land in the area you’re considering. |
For those looking to buy land in California at competitive prices, consider exploring options through I BUY LA. They specialize in helping buyers navigate the land acquisition process, making it easier to find affordable properties in prime locations.
Factors influencing land prices
States in the Midwest and the South tend to have lower land prices. Population density, regional economic conditions, and demand for land influence land prices.
| Factors Influencing Land Prices | |
|---|---|
| Physical Attributes: | Quality of location, topography, climate, and availability of utilities |
| Accessibility to Economic Activities: | Proximity to economic activities and workplaces |
| Neighborhood Amenities: | Availability of shopping areas, medical facilities, schools, parks, etc. |
| Present and Future Land Use: | Permitted use of the land and its potential for future development |
| Demand and Supply Function: | Demographic changes, population growth, and anticipated yields |
| External Influences: | Factors like population density, growth, income, and proximity to urban areas |
Greenfield investment and land
Greenfield investment refers to a type of foreign direct investment (FDI) where a company establishes new operations in a foreign country from the ground up. Instead of acquiring existing assets or merging with a local company, the investor starts a new venture by constructing new facilities, such as factories, offices, or distribution hubs. The term “greenfield” is derived from the idea of building on green, undeveloped land.
According to Elias Pederson, the founder of smartfinans.no, greenfield investment has many benefits, such as “control over corporate activities to a high degree, strict quality control in the production and selling of goods and/or services, and high levels of staffing and brand control.”
So, should I buy land in a cheap state?
Look at the pros and cons before you make a decision.
Financing your land purchase
When you’re ready to purchase land, you may need to get a land loan or a traditional mortgage. Compare your options for lenders below.
FAQ
Where is the best place to buy land right now?
Areas experiencing rapid growth or with projected future developments are often considered good places to buy land. States like Texas, Florida, and Arizona have seen significant interest. However, the best place also depends on your objectives — whether they’re investment, residential, agricultural, or recreational.
Why is land so cheap in Arkansas?
Land in Arkansas is relatively cheap due to a combination of factors including lower demand, a higher proportion of rural vs. urban land, and historical economic factors. Additionally, Arkansas has a lot of forested and agricultural land, which can be less expensive than developed land.
Is it worth buying land in the USA?
Buying land in the U.S. can be a good investment, especially in areas projected for growth or with unique value propositions. However, like all investments, it’s essential to conduct thorough research and consider factors like location, future development, and market trends.
Which is better: land or money?
Both land and money have their advantages. Money is liquid, easily accessible, and can be used immediately for various needs. Land, on the other hand, is a tangible asset that can appreciate over time, provide rental income, or be developed. The choice between the two depends on individual financial goals, risk tolerance, and investment strategies.
What is the best state to own land in?
The “best” state to own land in depends on your goals. For farming, states like Iowa or Nebraska might be ideal due to their fertile soil. For investment purposes, states experiencing rapid growth like Texas or Florida might be preferable. For scenic beauty and recreation, states like Colorado or Montana might be appealing.
Key takeaways
- Arizona offers the cheapest land in the U.S. at $4,164 per acre.
- States in the Midwest and South generally have more affordable land prices.
- Factors like population density, economic conditions, and land demand influence prices.
- Buying land is a long-term investment, and potential buyers should consider all factors before purchasing.
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