Best Places to Buy Land in the United States
Investing in land can be a wise decision for various reasons, from generating passive income to securing a space for personal or recreational use. However, with vast geographical differences across the United States, determining the best place to buy land requires careful consideration of multiple factors. This article explores the top 10 states for land investment, highlighting their unique advantages, and provides valuable tips to guide your land-buying journey.
Best Places to Buy Land in the United States:
Why Invest in Land?
Benefits of Owning Land
Investing in land can offer numerous benefits, making it an attractive option for those seeking long-term financial stability and personal satisfaction.
Potential for Appreciation
Land is a finite resource, and as population growth and development increase, the value of land tends to appreciate over time. This makes land a potentially lucrative investment opportunity, especially in areas with high demand and limited supply.
Passive Income Opportunities
Land can generate passive income through various means, such as leasing for agricultural purposes, renting for recreational activities, or even hosting events or festivals. These income streams can provide a steady flow of revenue with minimal effort on your part.
Recreational Activities
Owning land allows you to enjoy various recreational activities on your property, such as camping, hiking, hunting, or simply enjoying the great outdoors. This can contribute to an improved quality of life and serve as a personal sanctuary.
Factors to Consider
When evaluating potential states to buy land, several factors should be taken into account to ensure a wise investment decision.
Availability and Cost
The availability and cost of land vary significantly across different states and even within the same state. It’s crucial to research areas with ample land supply and affordable prices to maximize your investment potential.
Local Economy and Job Market
A strong local economy and job market can positively impact land values, as people are more likely to relocate to areas with employment opportunities. Consider states with a diverse and thriving economy to ensure long-term land value appreciation.
Tax Rates
Property taxes, income taxes, and other tax implications can significantly impact the overall cost of owning land. Evaluate states with favorable tax rates to maximize your return on investment.
Amenities and Climate
The availability of amenities, such as quality schools, healthcare facilities, and recreational opportunities, can influence the desirability of an area and, consequently, the value of the land. Additionally, climate preferences may play a role in your decision-making process.
Top 10 Best States to Buy Land
Based on various factors, including land availability, cost, economic conditions, and recreational opportunities, here are the top 10 best states to consider for land investment:
1. Florida
Coastal Location
Florida’s coastal location and warm climate make it an attractive destination for both residents and tourists. The state boasts over 1,350 miles of coastline along the Gulf of Mexico and the Atlantic Ocean, offering ample opportunities for waterfront properties and recreational activities.
Low Land Prices
Despite its popularity, Florida offers relatively low land prices compared to other states. The average price per square foot is around $244 (Redfin), with considerable variation depending on location.
Attractions and Recreation
Florida is renowned for its numerous attractions, including world-famous theme parks like Disney World and Universal Studios. Additionally, the state offers a wide range of outdoor activities, such as fishing, boating, and beach adventures, making it an ideal location for those seeking an active lifestyle.
2. Arizona
Stable Economy
Arizona’s economy has remained stable, with a healthy job market and a growing population. This positive economic climate contributes to the state’s attractiveness for land investment, as it increases the potential for land value appreciation.
Affordable Land Prices
The website analyzed average home prices and average home sizes in each state to come up with its rankings. Arizona was No. 16 overall, with an average price per square foot of $252. (Phoenix Agent Magazine)
Outdoor Activities
Arizona is renowned for its natural wonders, including the iconic Grand Canyon and its sunny weather. Outdoor enthusiasts can enjoy a wide range of activities, such as hiking, rock climbing, and scenic drives, making it an ideal destination for those seeking an active lifestyle.
3. Nevada
Natural Beauty
Nevada is home to stunning natural landscapes, including Lake Tahoe, Death Valley National Park, and Red Rock Canyon National Park. These attractions offer ample opportunities for outdoor recreation, such as hiking, camping, and rock climbing.
Reasonable Land Costs
Despite its popular tourist destinations and natural beauty, the median listing home price in Las Vegas, NV was $450K, trending up 3.7% year-over-year. The median listing home price per square foot was $261. (Realtor.com)
Recreational Opportunities
In addition to its natural wonders, Nevada is famous for its 24-hour casinos and nightlife in Las Vegas. This combination of outdoor recreation and entertainment options makes Nevada an attractive destination for those seeking a diverse range of activities.
4. New Mexico
Unique Landscapes
New Mexico, also known as “The Land of Enchantment,” boasts stunning landscapes ranging from the Chihuahuan Desert to the Sangre de Cristo mountains. These diverse environments offer unique recreational opportunities and breathtaking scenery.
Affordable Land Prices
There are currently 6,831 homes for sale in New Mexico. The median list price in New Mexico is $399,900 and the average price per square foot is $217. (Redfin)
Cultural Attractions
New Mexico’s capital, Santa Fe, is renowned for its upscale spas, Spanish Colonial architecture, and vibrant cultural scene. Additionally, the state offers a variety of events and activities, making it a popular tourist destination.
5. Oregon
Diverse Terrain
Oregon is a Pacific Northwest state known for its diverse landscapes, including forests, mountains, farms, and beaches. This variety of terrains provides ample opportunities for outdoor recreation and scenic vistas.
Thriving Cities
Portland, Oregon’s largest city, is well-known for its quirky, avant-garde culture, iconic coffee shops, boutiques, farm-to-table restaurants, and microbreweries. The city offers a unique urban experience complemented by its natural surroundings.
Land Price
The median sale price of a home in Oregon was $430K last. The median sale price per square foot in Oregon is $222, up 15.9% since last year. (Redfin)
Outdoor Recreation
Outdoor enthusiasts can enjoy a wide range of activities in Oregon, such as hiking, camping, fishing, and skiing. The state’s diverse landscapes provide ample opportunities for adventure and exploration.
6. Tennessee
Low Cost of Living
Tennessee is one of the most affordable states to live in, with low property prices, low taxes, and no state income tax. This low cost of living makes it an attractive option for land investment.
Attractive Land Prices
Tennessee offers relatively inexpensive land prices, even in areas with amazing amenities and attractions. There are currently 38,952 homes for sale in Tennessee. The median list price in Tennessee is $429,000 and the average price per square foot is $205. (Redfin)
Growing Population
Tennessee’s population has been steadily growing, increasing by 4% between 2010 and 2015, reaching over 6.6 million people. This population growth can contribute to increased demand for land and potential appreciation in land values.
7. Arkansas
Outdoor Activities
Arkansas is a state with numerous outdoor recreation opportunities, including fishing, hunting, hiking, mountain biking, golfing, and boating. These activities cater to various interests and lifestyles, making Arkansas an attractive destination for nature enthusiasts.
Affordable Land Costs
In addition to its outdoor offerings, Arkansas boasts affordable land costs. There are currently 13,749 homes for sale in Arkansas. The median list price in Arkansas is $299,999 and the average price per square foot is $152. (Redfin)
Expanding Economy
Arkansas has an expanding economy and a low cost of living, making it an appealing option for those seeking a balance between affordability and economic opportunities.
8. Washington
Natural Wonders
Washington is a Pacific Northwest state with diverse terrain, ranging from the snow-capped Cascade Mountains to the forested islands of Puget Sound. The state offers an abundance of natural wonders, including Seattle’s iconic Space Needle and the renowned Pike Place Market.
Reasonable Land Prices
There are currently 24,992 homes for sale in Washington. The median list price in Washington is $650,000 and the average price per square foot is $347. (Redfin)
Vibrant Cities
Seattle, Washington’s largest city, is known for its thriving tech industry, vibrant music scene, and renowned coffee houses. The city offers a unique blend of urban amenities and proximity to natural wonders, making it an attractive destination for those seeking a balanced lifestyle.
9. California
Diverse Landscapes
California is a western state with diverse landscapes, including cliff-lined beaches, redwood forests, the Sierra Nevada mountains, and the Mojave Desert. This variety of terrains offers abundant opportunities for recreation and enjoyment of the great outdoors.
High Land Prices
On average, building a custom home in California will cost $500 or more per square foot, according to Aballi — while building a tract home in California will cost $300 to $350 per square foot. (HomeLight)
Attractions and Entertainment
California is renowned for its attractions and entertainment offerings, particularly in the city of Los Angeles, known as the home of the Hollywood entertainment industry. San Francisco is another popular destination, famous for its iconic Golden Gate Bridge, Alcatraz Island, and cable cars.
10. Mississippi
Cheap Land Prices
There are currently 9,514 homes for sale in Mississippi. The median list price in Mississippi is $299,000 and the average price per square foot is $146. (Redfin)
Natural Attractions
Mississippi is home to the Mississippi River, one of the largest rivers in the country, and offers several natural attractions, including the Gulf Islands National Seashore, a National Park area for recreation on the Gulf Mainland and barrier islands.
Recreational Opportunities
While Mississippi may not be as well-known as some other states for recreation, it still offers various opportunities for outdoor enthusiasts, such as fishing, hunting, and exploring the state’s natural beauty.
Tips for Buying Land
When considering a land purchase, it’s crucial to approach the process with careful planning and due diligence. Here are some tips to help you make an informed decision:
Research and Planning
Define Your Goals
Before beginning your land search, clearly define your goals for the property. Are you looking for a personal retreat, an investment opportunity, or a space for a specific purpose? Understanding your objectives will help you narrow down your search and make informed decisions.
Understand Zoning and Regulations
Familiarize yourself with the zoning laws and regulations in the areas you’re considering. These rules can impact how you can use the land and any future development plans you may have.
Consider Future Development
If you plan to develop the land in the future, research the potential for growth and expansion in the area. Factors such as infrastructure, access to utilities, and proximity to amenities can affect the feasibility and value of future development projects.
Financing Options
Cash Purchases
If possible, consider a cash purchase to avoid additional costs associated with financing. Cash transactions can often provide more negotiating power and faster closing times.
Land Loans
If you need financing, explore land loans or raw land loans specifically designed for purchasing undeveloped land. These loans may have different requirements and terms compared to traditional mortgages.
Owner Financing
In some cases, the seller may be willing to offer owner financing, where they act as the lender and receive payments from you over time. This can be an attractive option if you have difficulty securing traditional financing.
Due Diligence
Property Inspections
Before finalizing a land purchase, it’s crucial to conduct thorough property inspections to identify any potential issues or encumbrances. This may include surveying the boundaries, checking for easements, and assessing the land’s topography and soil conditions.
Title Search
A title search is essential to ensure that the seller has a clear and legal right to transfer ownership of the property. This process can uncover any outstanding liens, encumbrances, or disputes over the land’s ownership.
Environmental Assessments
Depending on the location and intended use of the land, it may be advisable to conduct environmental assessments to identify any potential contamination or hazards. These assessments can help you avoid costly remediation or legal issues in the future.
Conclusion
Investing in land can be a rewarding endeavor, offering potential for appreciation, passive income opportunities, and personal enjoyment. By carefully considering factors such as location, cost, economic conditions, and recreational opportunities, you can make an informed decision about the best place to buy land in the United States.
Remember, thorough research, planning, and due diligence are crucial to ensure a successful land purchase. With the right approach and careful consideration of your goals and priorities, you can find the perfect piece of land to meet your needs and achieve your desired outcomes.
FAQs
1. Is it better to buy land or an existing property?
The decision to buy land or an existing property depends on your goals and circumstances. Buying land allows you to customize and develop the property according to your preferences, but it may require more upfront investment and effort. Existing properties offer immediate occupancy but may require renovations or compromises on your desired features.
2. How do I finance a land purchase?
There are several financing options available for land purchases, including:
- Cash purchases: If you have the funds available, a cash purchase can be advantageous as it avoids additional financing costs and may provide more negotiating power.
- Land loans: Specialized loans designed specifically for purchasing undeveloped land. These loans may have different requirements and terms compared to traditional mortgages.
- Owner financing: In some cases, the seller may be willing to act as the lender, allowing you to make payments directly to them over time.
It’s essential to explore all available options and work with lenders who understand the unique nature of land investments.
3. What should I look for when inspecting a potential land purchase?
When inspecting a piece of land, it’s crucial to consider factors such as:
- Boundaries and property lines: Ensure that the land’s boundaries are clearly defined and match the legal description.
- Topography and soil conditions: Assess the land’s terrain, slope, and soil quality, as these factors can impact potential development or intended use.
- Access and utilities: Evaluate the accessibility of the land and the availability of utilities, such as water, electricity, and sewage.
- Environmental concerns: Conduct environmental assessments to identify any potential contamination, hazards, or protected areas that may impact the land’s use.
Thorough inspections can help you avoid costly issues and ensure that the land meets your needs and requirements.
4. How important is location when buying land?
Location is a critical factor when buying land. The location can significantly impact the land’s value, potential for appreciation, and suitability for your intended use. Consider factors such as:
- Proximity to amenities, job opportunities, and transportation
- Local zoning laws and regulations
- Future development plans in the area
- Natural features and recreational opportunities
A desirable location can not only enhance the value of your investment but also contribute to a better quality of life if you plan to use the land for personal purposes.
5. Can I build a home on the land I purchase?
The ability to build a home on the land you purchase depends on several factors, including zoning regulations, building codes, and the availability of utilities. Some land may be designated for residential use, while other parcels may be zoned for agricultural or commercial purposes.
It’s essential to research the zoning laws and regulations in the area to ensure that your intended use is permitted. Additionally, you may need to obtain various permits and approvals before beginning any construction projects. Working with local authorities and professionals can help you navigate the process and ensure compliance with all necessary requirements.
FURTHER READING
