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

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:

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 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:

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

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

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.