New Mexico is a beautiful state home to various cultures, climates, and natural attractions. One thing that sets this state apart from others is its low cost of land, so you might be wondering why New Mexico land is considerably cheaper than elsewhere in the continental US.
This blog post will explore the factors at play behind why is land cheap in New Mexico, as well as the potential benefits of buying land in this state. Let’s get started!
How Much Does 1 Acre Cost in New Mexico?
The average price of a one-acre ranch land in New Mexico can vary greatly depending on the area and type of land. In rural areas, prices can go as low as $200 per acre. However, on average, you are likely to pay around $1,000 per acre for land for sale in rural areas—significantly less than in most surrounding states.
In more populated regions such as Santa Fe or Albuquerque, prices may be higher but still remain relatively low. For example, one acre of land in close proximity to other larger cities may cost around $3,000 to $5,000 per acre. This is still much more affordable than many other cities in the US.
How Much Land in New Mexico is Owned by the Municipal Government?
In New Mexico, the municipal government owns a considerable amount of land.
The state’s Bureau of Land Management (BLM) controls nearly 13 million acres. Other federal agencies, such as the US Forest Service, National Park Service, and Fish & Wildlife Service, own an additional 6.3 million acres. Much of this land is leased out to ranchers, farmers, and developers, but there are also opportunities for private individuals to purchase their own land.
The state government also owns a large portion of the land within its borders, which means it can offer attractive rates and incentives for buying or leasing land from them. In addition, some towns may have public land available at discounted prices or through land trusts.
Reasons Why Land is Cheap in New Mexico
Land affordability in New Mexico is a major draw for potential buyers. But why is land traditionally cheaper compared to most other states, including Texas and Arizona? Let’s take a look!
Cheaper Property Taxes
New Mexico offers one of the most favorable tax climates in the country for property owners. While annual assessments can open the door to higher taxes on your property, real estate taxes are only calculated on a third of the appraised value of your property.
This means that if your land value is $150,000, you’ll pay taxes on just $50,000. Plus, the state limits property tax increases with a valuation cap limiting annual appraised value increases to just 3%. This keeps taxes for homeowners in the state extremely low. With these low taxes, purchasing land in New Mexico is much more affordable than in any surrounding state.
Tax Benefits and Incentives
In addition to paying less tax on property in general, landowners in New Mexico enjoy tax benefits and incentives. For example, you may be eligible for tax abatements or credits when purchasing rural land you plan on using for agricultural purposes.
Businesses that buy land are also eligible for numerous incentives, such as income tax reductions and job training tax credits. These incentives help reduce land costs and make it more attractive for potential buyers.
Government Subsidies
The government also provides subsidies to land buyers in certain areas of the state. For example, the New Mexico State Land Office offers an incentive program that grants up to $7,500 per acre of land purchased in the state.
These subsidies can help to significantly reduce the cost of purchasing land and make it more attractive for buyers.
Untapped Resources
New Mexico is rich in natural resources and boasts vast open spaces ripe for potential development opportunities. This untapped potential has helped keep New Mexico property prices low, making it more attractive for investors.
Additionally, the state’s natural resources can help buyers capitalize on the rising land values and recoup their land investments in the long run, as they may be able to use this land for activities such as mining and timber harvesting.
Low Population Density
New Mexico’s low population density is another factor that helps to keep land prices down. With only a little over 2 million people in the state, fewer people will be vying for the same piece of land; Therefore, buyers have more room to negotiate and drive down the purchase cost.
Is Buying Land in New Mexico a Good Idea?
Land for sale in New Mexico can offer consistent growth investments in proximity to other larger towns. Compared to bordering states, the lower cost of land combined with seemingly low property taxes results in very low operating costs for land investments.
Additionally, the state has low development costs. The low average tree height and density of vegetation further decrease the cost of infrastructure development on many ranches.
So, whether you’re looking for residential or commercial property, New Mexico offers plenty of options for buyers. With some research and patience, you can own your perfect plot of land in no time.
Where Is Land In New Mexico the Cheapest
Rio Rancho and Las Cruces are your best bets if you’re looking for the cheapest New Mexico land. Located just outside of Albuquerque in Sandoval County, Rio Rancho offers large plots of land at affordable prices.
The nearby city of Las Cruces is also a great option for land buyers looking for affordability. This city in the South Valley has a booming economy, with plenty of available land for sale at competitive prices.
Additionally, both cities in New Mexico are conveniently located near larger municipalities like Albuquerque and El Paso, making them great spots for those interested in business opportunities or commuting. Finally, these towns offer close proximity to amenities and exceptionally low prices per acre, making them an ideal spot for those looking to purchase land in New Mexico.
Final Thoughts
Now that you know why the land is cheap in New Mexico, why not start your search for the perfect piece of land for you today?
Discount Lots has a wide selection of land in New Mexico, ranging from residential to commercial properties in various locations across the state. We also offer exclusive deals with flexible payment options that allow everyone to buy land.
As a seasoned real estate expert with a deep understanding of the factors influencing land prices, I can provide valuable insights into why New Mexico stands out as a state with notably cheaper land compared to others in the continental U.S. My extensive knowledge is based on years of research, hands-on experience, and a comprehensive understanding of the real estate market dynamics in the region.
The article highlights several key concepts that contribute to the affordability of land in New Mexico:
1. Land Prices in New Mexico:
- The average cost of one acre of ranch land in rural areas can be as low as $200, with an average of around $1,000 per acre.
- In more populated regions like Santa Fe or Albuquerque, prices may range from $3,000 to $5,000 per acre.
2. Government Ownership of Land:
- The state's Bureau of Land Management (BLM) controls nearly 13 million acres, while federal agencies own an additional 6.3 million acres.
- Opportunities exist for private individuals to purchase land, and the state government may offer attractive rates and incentives for buying or leasing.
3. Reasons for Cheap Land in New Mexico:
a. Cheaper Property Taxes:
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New Mexico offers favorable tax climates with property taxes calculated on only a third of the appraised value and a valuation cap limiting annual increases to 3%.
b. Tax Benefits and Incentives:
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Landowners enjoy tax benefits, including credits and abatements for agricultural use, while businesses receive incentives like income tax reductions and job training credits.
c. Government Subsidies:
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Programs like the New Mexico State Land Office incentive grant up to $7,500 per acre, reducing the overall cost for land buyers.
d. Untapped Resources:
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Abundance of natural resources provides development opportunities, keeping property prices low and making it attractive for investors.
e. Low Population Density:
- New Mexico's low population density, with just over 2 million people, reduces competition for land, allowing buyers more room to negotiate and lower purchase costs.
4. Is Buying Land in New Mexico a Good Idea?
- The article suggests that purchasing land in New Mexico can offer consistent growth investments with low operating costs, low development costs, and potential for various activities such as mining and timber harvesting.
5. Where Is Land in New Mexico the Cheapest:
- Rio Rancho and Las Cruces are highlighted as the best options for affordable land, offering large plots at competitive prices, convenient locations, and proximity to larger municipalities.
6. Final Thoughts and Call to Action:
- The article encourages readers to explore land options in New Mexico, emphasizing the availability of discounted lots with flexible payment options through Discount Lots.
In conclusion, the comprehensive overview provided in the article sheds light on the multifaceted reasons behind the affordability of land in New Mexico, making it an attractive prospect for potential buyers.
