Americans are always on the move, seeking new places to call home. A recent study on 2020 relocation trends revealed interesting insights, showing that most Americans moved to the South or the West last year. Idaho experienced the highest increase in new residents, followed by South Carolina, Oregon, South Dakota, and Arizona. On the other hand, New Jersey, New York, Illinois, Connecticut, and California saw the highest number of outbound moves.
As millions of Americans continue to search for new places to live in 2021, the demand for existing homes in the real estate market is soaring. However, with rising housing prices and a scarcity of homes, people are exploring alternative options. One viable alternative is buying acres of livable land with homesites, especially for those interested in rural living. This research delves into the trends of land pricing and availability throughout the United States, identifying the most affordable states for rural land purchases.
Key Findings
- Arizona boasts the cheapest median price of land per acre in the U.S., with an average of just over $4,000 per acre. In contrast, Rhode Island tops the chart as the most expensive state, with a median price of over $350,000 per acre.
- Surprisingly, while property values in New York City remain sky-high, land prices elsewhere in the state are relatively cheaper per acre compared to most other states. New York ranks sixth on the list of states with the cheapest land per acre.
- If you're looking for a good spot to build a new home, Arizona is the place to be. The Grand Canyon State has a higher proportion of undeveloped and homesite land than any other state.
How Much an Acre Costs in Each State
The cost of land varies across states and is influenced by factors such as population density, availability, and demand. Smaller states in the Northeast and the islands of Hawaii tend to have the most expensive tracts of land. However, our study revealed some surprising results.
Rhode Island, as the smallest state, understandably has the highest median price per acre, just over $350,000. Utah, on the other hand, was an unexpected finding. The Beehive State has a median price of over $195,000 per acre, making it the fifth-most-expensive state and the only state west of Maryland with a median price per acre exceeding $100,000 (excluding Hawaii).
Despite its size, the cost of land in Utah is higher than in Maryland, New Hampshire, and Delaware. This could be due to factors such as climate, agricultural limitations, and the presence of protected lands occupied by national parks, Native American reservations, and the U.S. Department of Defense.
Where to Find the Cheapest Land
If you're looking for affordable land, Arizona is the place to be. With a median price of around $4,000 per acre, it tops the list as the state with the cheapest land in the U.S. New Mexico, a neighboring Southwestern state, closely follows with a median price of $6,000 per acre. Mississippi ranks third, with land costing approximately $10,000 per acre.
For those interested in buying large tracts of land, New Mexico offers the cheapest median price per acre for parcels of 100 acres or more, while Arizona is the most affordable for parcels of 640 acres (equivalent to 1 square mile) or more.
If you're specifically looking for a property with an existing house, Mississippi offers the lowest cost per acre. New Mexico is a close second in this category, particularly for large homes with four or more bedrooms. If you want to build a new home, Arizona is the state to focus on. It offers the least expensive homesites in the nation, along with a sunny climate and a reasonable cost of living. Furthermore, Arizona's top small towns, including Sedona and Bisbee, boast beautiful scenery, recreational activities, and artistic communities.
Where to Build a New Home
Homesites are building lots zoned as residential property, enabling buyers to legally construct a home on the land they purchase. Southern and Western states dominate the rankings as the best states for homesites in 2021, with states in the North having fewer options. The top five states with the highest number of homesites currently available for purchase are:
- Arizona
- North Carolina
- Louisiana
- Tennessee
- Florida
In addition to affordable land, these states offer a wider selection and lower prices for home building. Nebraska and Indiana, both Midwestern states, also have a high percentage of homesites available this year. Indiana, in particular, ranks among the top 10 cheapest states to live in based on a study by the Council for Community and Economic Research.
Where to Find Land for Recreational or Commercial Use
Apart from residential land, our study also analyzed land availability for recreational and commercial use. Indiana, a top contender for affordable homesites and a low cost of living, ranks at the top for land available for commercial use. Texas, although ranking in the middle in terms of land affordability, is the best state for owning a farm or ranch. Montana offers the largest selection of properties for horse ranching purposes.
Michigan stands out as the best state for hunting and lakefront properties. Maine and South Carolina are the go-to states for oceanfront acreage and tracts along rivers, respectively. In addition to its high proportion of available homesites, Arizona also ranks highly for undeveloped land and properties for recreational use.
When it comes to outdoor adventure, Alaska takes the lead. It offers the most land for aviation, beaches, boating, canoeing/kayaking, fishing, and off-roading. Montana, on the other hand, is the best state for horseback riding properties, aligning with its large selection of land suited for horse ranches. Nevada tops the list for properties suitable for RVing.
New York, a seemingly urban state, surprises many with its vast acres of forested lands and large lakes. It ranks as the state with the most land set aside for camping. Alabama, according to our study, has the most timberland available for purchase.
Conclusion
With millions of acres available for sale across the United States, there is a vast array of opportunities for Americans looking to relocate or invest in properties for commercial or recreational use. The most affordable land can be found in the neighboring states of Arizona and New Mexico. Mississippi offers the lowest cost for land with an existing house, while Arizona provides the most affordable homesites for building a new residence. Generally, Southern and Western states offer cheaper relocation options compared to Northeastern states. However, New York and Utah challenge this generalization, with rural land being unexpectedly expensive in Utah and relatively cheaper in New York compared to surrounding states.
Our Data
This ranking is based on our analysis of a wide range of listings available on LandWatch.com. We considered a sample of listings ranging from 125 to 2,136 for each state, allowing us to assess trends in the larger catalog. It is important to note that LandWatch.com listings primarily focus on rural areas, so this analysis is best applied to land availability and cost outside urban areas.
Image: New York Surprisingly Affordable, Utah Unexpectedly Expensive
