Homeownership is a fundamental aspect of the American Dream. However, due to a supply shortage of 3.8 million homes in the United States since 2020, owning a home has become unattainable for many individuals. This shortage, coupled with fluctuating interest rates and the growing flexibility in housing location, has caused a surge in homebuilding, with new construction reaching its highest levels since 2006. As home prices vary across different states, so too does the cost of land. In this article, we delve into the states with the most and least affordable land per acre.
The Most Expensive States to Buy Land
According to our analysis, the following states have the highest land prices:
- Rhode Island
- Massachusetts
- Connecticut
- New Jersey
- Hawaii
- Utah
- Delaware
- Maryland
- New Hampshire
- Washington
Unsurprisingly, land prices are most exorbitant in the Northeast. Rhode Island takes the top spot, with an eye-watering average price of $350,400 per acre. If you're looking for more affordable options, let's explore the states where land is less costly.
The Cheapest States to Buy Land
If you're seeking affordable land, consider the following states:
- Arizona
- New Mexico
- Mississippi
- Colorado
- Arkansas
- New York
- Missouri
- Oregon
- Alabama
- Michigan
Interestingly, many of these states are located in the Western region, which also happens to have more cows than people. These affordable land options may entice remote workers to head west and experience the charm of saying "ya'll." However, before you pack up and make the move, ensure that your new home has speedy internet access for your remote job.
How We Determined This
Determining the cost of an acre of land in each state was a straightforward process. We reviewed the estimated average land value for every state as of June 2023, considering both residential and commercial properties.
Don't Get Too Excited
While the low sticker price of land may tempt you to build your dream home, there are a few factors to consider. Firstly, these prices represent averages, which means that the land you desire for your ideal home may come at a higher cost. Additionally, building a house on the land entails expensive needs such as plumbing, electricity, and construction materials. Lastly, even if the land is affordable, the cost of the rest of the house may not align with your budget. Furthermore, affordable land may not always offer the broadband access necessary for remote work.
Average Cost per Acre
Here's a list of states ranked by their average 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
Remember to keep these factors in mind when considering land purchases. The affordability of land is just one aspect, and it's essential to have a holistic understanding of the costs associated with building and living in your dream home.