Top 10 States to Buy Land in the USA in 2023 (2024)

FAQs

Top 10 States to Buy Land in the USA in 2023? ›

Land investment may not be as common as residential real estate, rental properties, or REITs, but it's looking like a solid choice in 2023, and beyond. Investments in land have steadily increased over the last decade. Investors may purchase land for agricultural purposes or residential and commercial real estate.

Land investment may not be as common as residential real estate, rental properties, or REITs, but it's looking like a solid choice in 2023, and beyond. Investments in land have steadily increased over the last decade. Investors may purchase land for agricultural purposes or residential and commercial real estate.

InMyArea.com performed a study that took a look at the median prices per acre in 2021 and found that Arizona had the cheapest median cost per acre, at $4,164. The data includes the price of land with existing homes and the cost of land designated as a homesite was also included so that you can have some comparison.

Lowest price per 5 acres: $6,500

So for both 1 acre and 5 acre plots, the cheapest states to buy land in 2023 are New Mexico, Arizona, Mississippi, followed by Colorado and California. Some great news for you here is that at Compass Land USA, we do a lot of work in Colorado, and Arizona.

Alaska has the most acres in the United States followed by Texas and California. The United States has more than 2.4 billion acres of total area (land and water).

2023 is a balanced year for housing supply and demand. This is ideal for retail purchasers and rental property investors. No longer a “seller's” market. Rising interest rates raise the monthly mortgage payment, which reduces homebuyers and lowers property values.

The land is always a profitable investment as you can make money off it quickly. You can either sell your land, use it to grow crops, use the land as boat storage, or lease it out. The highest and best use of land is an imperative factor that determines the value of your land.

Parts of Wyoming can have some very large ranches that seem relatively inexpensive compared to ranches in other areas and other states. This may be because the land is not as productive, is a long way from a major town, and may have limited water or other resources.

The state with the most expensive land in the U.S. is New Jersey, where one acre costs a whopping $196,410. The average acreage of property in the U.S. is 10,871 square feet, or a quarter of an acre.

Where is the best place to buy land right now? ›

Oregon. Oregon is home to a number of major off-grid communities, including the 4,000-acre piece of land known as Three Rivers. Rather than using public utilities, the 75 to 80 members of the association share solar and wind power. Oregon also has low property costs and many desirable natural resources.

The 2022 Land Report 100, compiled each year by The Land Report magazine, released its annual list of landowners who own the most acres in the United States. The nation's largest private landowners are the Emmerson family in California who own over 2.4 million acres.

The United States had 895.3 million acres of land in farms in 2021. Texas had the most land in farms in the United States in 2021 followed by Montana and Kansas.

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

Homebuyer.com data analysis indicates that, for first-time home buyers, June 2023 is a good time to buy a house relative to later in the year. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.

For small investors to truly enjoy the more traditional sense of land ownership, perhaps the best options are timber farms, mineral development lands, vegetable gardens, orchards, vineyards, and recreational land.

Is there a downside to buying land? ›

Land can be expensive to trade into and out of. There's real estate agent commissions, surveys, title insurance premiums, transaction taxes, etc. and all of these costs (those that you pay when you buy land and those that you pay when you sell it) reduce your profit.

Real estate is renowned for being a profitable investment since it provides both revenue (via rentals) and appreciation over time (selling your property for a profit). If you're wondering why it is important to own land, you must understand that real estate investments are an excellent way for expanding your wealth.

1 acre is approximately 208.71 feet × 208.71 feet (a square) 4,840 square yards. 43,560 square feet. 160 perches.

The 27 matching properties for sale in Wyoming have an average listing price of $63,733 and price per acre of $1,924. For more nearby real estate, explore land for sale in Wyoming.

Bill Gates, the co-founder of Microsoft, who remains one of the richest people in the world, bought this historic ranch in 2009 (for $9 million). Known as the Irma Lake Lodge, the property was settled by Buffalo Bill himself, in 1902.

Wyoming has the lowest average cost of living among all of the Rocky Mountain states, beating out neighbors like Utah, Colorado, Idaho, and Montana. It also ranks among the top 20 most affordable states in the nation, according to MERIC data collected in 2022.

How much is an acre of land in Texas? The average price per acre of rural land in Texas was more than $4,000 per acre in 2022, according to the Texas Real Estate Research Center. That average climbed each quarter: $4,116/acre average in Q1 of 2022.

The average cost per acre of land in Florida has risen some because of the demand. The average cost per acre starts around $6,100.

Where is land value the highest? ›

Monaco is the world's most expensive city to by land.

In general, you'll likely find it cheaper overall to buy an existing home, but that also depends on the market. A home loan is less risky than a land loan, and typically comes with a lower down payment and better interest rate.

Cold, Rain, and Snow Are Best For Purchasing Land

Colder months are the best time to buy a piece of land, which holds for both developed and raw land. With the holiday season and hunting, plus winter, there's less competition as properties listed have been on sale for months since the spring boom.

Texas. Texas tops the list of states offering cheap farmland. With its lengthy hot seasons and mild winters, the Lone Star State is especially ideal for growing cotton. The state is also a big beef cattle producer, so the price per acre may be lower due to the high demand for grazing land.

In a measure of land affordability Montana, Wyoming, New Mexico, Oklahoma and North Dakota ranked highest.

While living off the grid is technically not illegal in any of the 50 U.S. states, some of the essential infrastructure aspects of going off-grid are either too strictly regulated or banned. For example, in Mississippi, your system needs to be grid-tied, and disconnection is illegal.

Generally speaking, buying land in Florida can be an excellent idea, but if the land is designated as a wetland or in a flood zone, it can turn out to be the worst idea imaginable. As shown above, managing land in a flood zone or building on wetland can—and will—require a lot of special permits, time, and money.

Land is less expensive to hold over a long-term than most other real estate assets, like townhomes or apartment buildings. You still have to check the amount of annual property taxes before you buy it. You as the owner will still be responsible for property taxes.

Who is the richest rancher in America? ›

One of the largest landowners in the US is real estate tycoon Stan Kroenke, who owns nearly 1.7 million acres of land scattered over seven states. Ranches, forestry, hunting preserves, and several significant developments are among Kroenke's holdings.

The best states for farmland in the US include Montana, Kansas, Oklahoma, South Dakota, North Dakota, Texas, Iowa, Kentucky, Wyoming, and California. Consider factors like profitability, cost of operation, infrastructure, and availability when selecting a location.

1. California

It is recognized as the agricultural powerhouse of the United States. California's crops account for around 73% of the state's agricultural revenue, with livestock commodities accounting for the remaining 27%, allowing it to surpass all other states in terms of farm income.

What US states produce the most food? (Ranking 1-50)What US states produce the most food? (Ranking 1-50) California ranks first in the U.S. for agricultural cash receipts followed by Iowa, Texas, Nebraska and Illinois.

John Malone is the largest private landowner in the United States. Malone made his fortune as a media tycoon, building the company Tele-Communications, Inc, or TCI, and acting as its CEO before selling it to AT&T for $50 billion in 1999.

King Ranch, largest ranch in the United States, composed of a group of four tracts of land in southeastern Texas, totaling approximately 825,000 acres (333,800 hectares). The King Ranch was established by Richard King, a steamboat captain born in 1825 in Orange county, New York.

The state with the highest percentage of federal land is Nevada, of which 80.1%, or 56,262,610 acres of its total landmass is federally managed.

Investing in land is one of the most powerful strategies to make money in 2023. Over the past few years, demand for land as an investment has experienced an uptick. From 2020 to 2021, there has been an increase of 155% in rural land sales. This growth is due to the stability that comes with purchasing a piece of land.

Is land held for future use an investment? ›

Because land is one of the longer term investments that a business can own, it is categorized as a fixed asset on a business's balance sheet.

Is buying land a good investment? In most cases, the answer is yes – as long as you're properly prepared. Investing in undeveloped land, however, isn't quite as simple as putting money down on a duplex. To ensure you're making an informed decision, we've outlined our top seven tips to know before purchasing land.

Investing in farmland as an inflation hedge. There's one more big reason that farmland is an especially compelling investment right now: inflation. Unlike mainstream financial assets, which tend to lose value when consumer prices go up, the value of farmland actually tends to rise when prices rise.

Although many people assume that land depreciates over time, this is false. Land doesn't lose value over time as other tangible assets like machinery or equipment do. Instead, changes in value are caused by things like a slowing economy or changing market conditions.

Land prices also tend to drop during a recession period, but they almost always rise immediately after the downturn is over, which is why it might be a good time to consider buying land to build a home for the future or for investment purposes.

The land asset is not depreciated, because it is considered to have an infinite useful life. This makes land unique among all asset types; it is the only one for which depreciation is prohibited.

Since land is an asset that is a long-term investment, which provides value for more than a year and is generally not liquidated within a year of its purchase, it should be categorized as a fixed asset on a business's balance sheet.

Land is a tangible investment and an asset that keeps increasing in value over time. Land ownership provides the owner with financial security and contentment. It has been in high demand as it can generate passive income, offer opportunities to earn, and let investors double their money without high risks.

No, land is not a current asset. A current asset is an asset that provides economic value for or within one year. Since land is expected to provide value for longer than a year, it is considered a long-term asset. In fact, land cannot be depreciated over time, making it the most long-lasting asset a company can have.

For small investors to truly enjoy the more traditional sense of land ownership, perhaps the best options are timber farms, mineral development lands, vegetable gardens, orchards, vineyards, and recreational land.

How to make money with land? ›

Steady demand

But over the past two years, demand for all types of land has been accelerating. From 2020 to 2021, farmland average prices grew 6%.

Commodities like gold, oil, and even soybeans should increase in price along with the finished products that are made with them. Inflation-indexed bonds and Treasury Inflation-Protected Securities (TIPS), tend to increase their returns with inflationary pressures.

Holding long-term fixed-rate investments, such as long-term bonds, fixed annuities, and some types of life insurance policies, during inflation can be bad because their returns may not keep up with inflation.

Is farmland a good investment? Farmland investments are often compared to other types of real estate investments, such as residential or commercial properties, and the answer is a resounding yes.