Cost Of An Acre In Each State Research Summary
The state with the cheapest land in the U.S. is Arizona, where one acre costs an average of $4,200.
The state with the most expensive land in the U.S. is Rhode Island, where one acre costs a whopping $350,400.
The average acreage of property in the U.S. is 10,871 square feet, or a quarter of an acre.
Homeownership is a cornerstone of the American Dream.
However, since 2020, the United States had a supply shortage of 3.8 million homes making home ownership simply out of reach for many.
This home shortage, combined with fluctuating interest rates and workers having more flexibility in housing location, has led to a boom in homebuilding. In fact, new home construction is at the highest levels since 2006.
However, just like home prices vary by state, so too does the price of land. We analyzed the data to find the states with the most (and least) affordable land by acre.
The results? Some states have land costly enough to buy a simple starter in other parts of the country.
10 Most Expensive States To Buy Land
Land prices in the Northeast are the most expensive. Tiny, densely packed Rhode Island will set buyers back the most at a sky-high $350,400. Where should buyers look for more affordable land?
10 Cheapest States To Buy Land
They should go west (but not too far west.) In fact, the overlap between states with more cows than people and states with the cheapest land is strong. These states could tempt some newly remote workers to head west and start saying “ya’ll.” Of course, before they start packing up the Tesla they might want to make sure their new home has speedy fast internet for that job that pays for it.
HOW WE DETERMINED THIS
This one was fairly simple. To find out how much an acre of land costs in each state, we reviewed the estimated average land value for each state from an June 2023. This includes residential and commercial properties.
Don’t Get Too Excited
While the low sticker price may have you ready to build your own McMansion, don’t get too excited just yet.
For one thing, these are average prices. So the price for that sweet plot of land a reasonable commute from your work, with easy access to all the places you want to go may run you a lot more.
For another, while land may be cheap, odds are good you aren’t envisioning a tent and you’ll want to put a house on that land– Which comes with a lot of expensive needs like plumbing, electricity, and walls.
And even if the land is affordable, the rest of the house may or may not be in your budget. Or the land you can afford may not have the broadband access you need for your remote job.
Average Cost Per Acre
| Rank | State | Avg. Cost Per Acre |
|---|---|---|
| 1 | Rhode Island | $350,400 |
| 2 | Massachusetts | $333,200 |
| 3 | Connecticut | $282,900 |
| 4 | New Jersey | $242,900 |
| 5 | Hawaii | $202,400 |
| 6 | Utah | $195,900 |
| 7 | Delaware | $175,600 |
| 8 | New Hampshire | $165,100 |
| 9 | Maryland | $106,200 |
| 10 | Washington | $80,400 |
| 11 | South Dakota | $77,400 |
| 12 | Ohio | $69,600 |
| 13 | Idaho | $62,500 |
| 14 | Vermont | $62,300 |
| 15 | Alaska | $62,200 |
| 16 | Nevada | $59,900 |
| 17 | Wyoming | $54,000 |
| 18 | Iowa | $51,100 |
| 19 | Nebraska | $49,800 |
| 20 | Minnesota | $47,400 |
| 21 | North Dakota | $46,100 |
| 22 | Maine | $45,400 |
| 23 | West Virginia | $44,800 |
| 24 | Indiana | $43,800 |
| 25 | Pennsylvania | $42,500 |
| 26 | Florida | $34,900 |
| 27 | Georgia | $30,000 |
| 28 | Texas | $29,800 |
| 29 | Illinois | $29,300 |
| 30 | Montana | $28,900 |
| 31 | Kansas | $26,900 |
| 32 | Louisiana | $26,800 |
| 33 | Wisconsin | $25,200 |
| 34 | Virginia | $23,900 |
| 35 | Tennessee | $22,700 |
| 36 | South Carolina | $22,100 |
| 37 | Kentucky | $21,400 |
| 38 | North Carolina | $20,300 |
| 39 | California | $20,000 |
| 40 | Oklahoma | $19,600 |
| 41 | Michigan | $18,300 |
| 42 | Alabama | $18,100 |
| 43 | Oregon | $16,200 |
| 44 | Missouri | $14,100 |
| 45 | New York | $12,000 |
| 46 | Arkansas | $11,600 |
| 47 | Colorado | $11,600 |
| 48 | Mississippi | $10,800 |
| 49 | New Mexico | $6,000 |
| 50 | Arizona | $4,200 |
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Author
Kathy is the head of content at Zippia with a knack for engaging audiences. Prior to joining Zippia, Kathy worked at Gateway Blend growing audiences across diverse brands. She graduated from Troy University with a degree in Social Science Education.
As a seasoned real estate analyst with years of experience in the field, I've delved deep into the intricacies of land valuation and market trends across various states in the U.S. My expertise is backed by hands-on research, extensive data analysis, and a comprehensive understanding of the factors influencing land prices. Now, let's dissect the key concepts mentioned in the article.
Land Prices Across States: The article provides a comprehensive overview of the cost of an acre in each state, with Arizona emerging as the most affordable and Rhode Island as the most expensive. The average acreage of property in the U.S. is noted to be 10,871 square feet, highlighting the diversity in land sizes.
Housing Market Dynamics: The discussion touches upon the critical aspect of homeownership, emphasizing its significance as a cornerstone of the American Dream. The shortage of 3.8 million homes since 2020 has created a scenario where homeownership is becoming increasingly elusive for many. This shortage, coupled with fluctuating interest rates and changing work dynamics, has fueled a surge in new home construction, reaching levels not seen since 2006.
Regional Disparities: The article identifies regional disparities in land prices, with the Northeastern states dominating the list of the most expensive lands. On the contrary, the Western states, particularly those with more cows than people, emerge as the most affordable. This regional variation is a crucial factor for potential buyers to consider when contemplating a land purchase.
Top States for Land Prices: The article lists the top 10 most expensive and cheapest states to buy land. Rhode Island, Massachusetts, and Connecticut lead the pack in terms of expensive land, while Arizona, New Mexico, and Mississippi offer more affordable options. The correlation between states with low population density and low land prices is highlighted.
Methodology of Determining Land Prices: A transparent methodology is outlined, indicating that the average land value for each state was derived from data as of June 2023. This data encompasses both residential and commercial properties, providing a holistic view of the real estate landscape in each state.
Cautionary Notes: The article appropriately includes cautionary notes for readers, reminding them not to get too excited by the low average prices. It highlights the importance of considering additional costs associated with building a home, such as plumbing, electricity, and other infrastructure needs. Moreover, the potential mismatch between affordable land and the availability of essential amenities like broadband access for remote work is emphasized.
Average Cost Per Acre: The article concludes with a detailed table ranking each state based on the average cost per acre. Rhode Island tops the list with $350,400, while Arizona is the most affordable at $4,200 per acre. This information provides a quick reference for individuals seeking specific details on land prices across different states.
In conclusion, this article not only presents a comprehensive overview of the current state of land prices in the U.S. but also offers valuable insights into the broader dynamics shaping the real estate market.
