Homeownership is often considered a key aspect of the American Dream. However, in recent years, the shortage of available homes has made it increasingly difficult for many Americans to realize this dream. With a shortage of 3.8 million homes since 2020, homeownership has become out of reach for a significant number of people[^1^]. This, combined with fluctuating interest rates and the rise of remote work, has resulted in a surge in homebuilding across the United States, reaching levels not seen since 2006[^1^].
But just as home prices vary from state to state, so do the prices of land. In this article, we will explore the states with the most and least affordable land per acre, shedding light on the significant disparities in land prices across the country.
The Most Expensive States to Buy Land
- Rhode Island
- Massachusetts
- Connecticut
- New Jersey
- Hawaii
- Utah
- Delaware
- Maryland
- New Hampshire
- Washington
Unsurprisingly, land prices in the Northeastern states are the most expensive. Rhode Island, the smallest state in the country, tops the list with an average price of land reaching a staggering $350,400 per acre[^1^].
The Cheapest States to Buy Land
- Arizona
- New Mexico
- Mississippi
- Colorado
- Arkansas
- New York
- Missouri
- Oregon
- Alabama
- Michigan
On the other end of the spectrum, the cheapest states for buying land are predominantly located in the western region of the United States. Interestingly, many of these states have a higher ratio of cows to people, which may be enticing for the growing number of remote workers seeking more affordable living options and a change of scenery[^1^].
Determining the Prices
The methodology used to determine the average cost per acre for each state was relatively straightforward. We examined the estimated average land value, including both residential and commercial properties, based on data from June 2023[^1^].
Don't Get Too Excited
Although the lower price tags on land may make building your dream home seem more attainable, it's important not to get carried away just yet. The average prices mentioned earlier should be taken with a grain of salt. Factors such as location, access to amenities, and commuting distances can significantly impact the actual costs involved in purchasing and developing land[^1^].
Moreover, while land may be affordable, the expenses associated with building a house can quickly add up. Plumbing, electricity, and construction costs are just a few examples of the additional financial considerations to bear in mind when embarking on a new homebuilding project[^1^].
It's also essential to weigh the broader financial implications. Even if the land itself is affordable, the cost of building a house that meets your specific needs and desires may surpass your budget. Furthermore, the availability of high-speed internet, crucial for remote work, may vary in certain regions, potentially limiting your options[^1^].
Below is a list of the average cost per acre for every state:
| State | Avg. Cost Per Acre |
|---|---|
| Rhode Island | $350,400 |
| Massachusetts | $333,200 |
| Connecticut | $282,900 |
| New Jersey | $242,900 |
| Hawaii | $202,400 |
| Utah | $195,900 |
| Delaware | $175,600 |
| New Hampshire | $165,100 |
| Maryland | $106,200 |
| Washington | $80,400 |
| South Dakota | $77,400 |
| Ohio | $69,600 |
| Idaho | $62,500 |
| Vermont | $62,300 |
| Alaska | $62,200 |
| Nevada | $59,900 |
| Wyoming | $54,000 |
| Iowa | $51,100 |
| Nebraska | $49,800 |
| Minnesota | $47,400 |
| North Dakota | $46,100 |
| Maine | $45,400 |
| West Virginia | $44,800 |
| Indiana | $43,800 |
| Pennsylvania | $42,500 |
| Florida | $34,900 |
| Georgia | $30,000 |
| Texas | $29,800 |
| Illinois | $29,300 |
| Montana | $28,900 |
| Kansas | $26,900 |
| Louisiana | $26,800 |
| Wisconsin | $25,200 |
| Virginia | $23,900 |
| Tennessee | $22,700 |
| South Carolina | $22,100 |
| Kentucky | $21,400 |
| North Carolina | $20,300 |
| California | $20,000 |
| Oklahoma | $19,600 |
| Michigan | $18,300 |
| Alabama | $18,100 |
| Oregon | $16,200 |
| Missouri | $14,100 |
| New York | $12,000 |
| Arkansas | $11,600 |
| Colorado | $11,600 |
| Mississippi | $10,800 |
| New Mexico | $6,000 |
| Arizona | $4,200 |
Table: Average cost per acre in each state[^1^].
While the prospect of affordable land may seem enticing, it's crucial to consider all the factors involved in making the right decision for your future home or investment. With careful planning, research, and expert advice, you can navigate the complex landscape of land prices and find the perfect spot to create your American Dream.
[^1^]: Source: How Much An Acre Of Land Costs In Each State
