How Much Does an Acre of Land Cost in Each State?

Image: Map of how much an acre of land costs in each state. Homeownership is often considered a key aspect of the American Dream. However, in recent years, the shortage of available homes has made...

map of how much an acre of land costs in each state Image: Map of how much an acre of land costs in each state.

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

  1. Rhode Island
  2. Massachusetts
  3. Connecticut
  4. New Jersey
  5. Hawaii
  6. Utah
  7. Delaware
  8. Maryland
  9. New Hampshire
  10. 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

  1. Arizona
  2. New Mexico
  3. Mississippi
  4. Colorado
  5. Arkansas
  6. New York
  7. Missouri
  8. Oregon
  9. Alabama
  10. 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