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Real Estate Tips
Saturday, February 01, 2025

7 Cheapest States To Buy Land in America

Aerial view of a green landscape with fields and trees, possibly the cheapest state to buy land for homesteading. Multiple location markers and a dotted outline highlight a section of the land. A hexagonal logo with "ez" is on the left against a pattern of hexagons.

Land remains one of the most valuable assets for Americans, offering endless opportunities to turn dreams into reality. Whether it’s a cozy homestead, a sprawling farm, or a few acres to build your dream home, land ownership represents stability, possibility, and, for many, a lifelong goal. It’s also one of the country’s most stable and fast-appreciating markets.

In 2023, the U.S. land market showed resilience with a 1.2% increase in land sales, according to the National Association of Realtors (NAR). Even more impressive, the value of household-owned land rose to $18.6 trillion, up from $17.2 trillion in 2022, highlighting the continued appreciation of this asset.

If you already imagine owning a plot to park your RV and go on off-grid adventures or investing in land to diversify your portfolio, the opportunities are as vast as the landscapes. But as exciting as it is, the cost of land is a crucial factor that shapes what’s possible. Understanding these costs is the first step toward turning your vision into a tangible piece of earth you can proudly claim.

This guide explores the seven cheapest states to buy land in America and the key factors influencing land prices, such as location, accessibility, and zoning laws. With this knowledge, you’ll be better equipped to find a property that fits your budget and goals.

What Influences The Price of Land in The United States

Aerial view of a housing development with paved roads and lots marked on a barren landscape, possibly in the cheapest state to buy land. A hexagonal logo with "ez" and a house icon is overlaid on the left side with a curved blue design.

Land prices show significant variations in the country due to multiple factors influencing land value. Understanding these can be of great help in making an informed decision when looking for the cheapest states to buy land. Keep reading for details.

The Plot Location

By rule of thumb, the closer a piece of land is to a metropolis or urban center, major roads or highways, or access to services and commodities, the more expensive it tends to be. For example, the average land cost in rural North Dakota will likely be lower than a parcel near Bismarck. The price of land acreage is also influenced by its proximity to highly-regarded natural features or touristic areas.

The Market Demand

Land prices fluctuate with demand. States with fast-growing populations, like Texas or Florida, may see higher land values due to increased interest in residential and commercial development. In Austin, rapid tech sector growth has skyrocketed the cost of land for residential and commercial use. While rural land in Texas averages $3,000 per acre, undeveloped real estate around Austin surpasses $20,000 per acre.

Land Use and Zoning Laws

Zoning regulations dictate how a tract of land can be used for agricultural, residential, or commercial purposes. Agricultural land tends to be cheaper than land zoned for residential or industrial use. That’s why cropland is gaining popularity across America. 

Topography and Soil Quality

Flat land with fertile soil is ideal for agriculture, like the parcels in Illinois, which are priced at an average of $9,550 per acre because of their suitability for agriculture. Conversely, arid or steeply sloped land, like rocky land in Nevada, is less suitable for farming or construction and can be purchased for under $1,000 per acre. This land for sale is often more appealing to recreational land buyers or those seeking inexpensive rural estates.

Infrastructure and Utilities Available

Land with access to electricity, water, and sewage systems typically costs more than undeveloped, unserviced plots. As a potential land buyer, take into account that the cost of adding infrastructure can quickly eat into the savings you get from buying cheap land.

The Climate and Natural Features

Living on waterfront land in Florida with a warm breeze and beach access is not the same as moving to your own piece of the Nevada desert. Land in areas with favorable climates or natural attractions, such as beaches, lakes, or mountains, is often highly valued, and that is reflected in the pricing. Land values tend to deflate in regions with harsh or extreme temperatures and flood-prone areas.

Natural Resources

Land rich in natural resources like timber, minerals, or water often comes with higher upfront costs, but it’s well worth the investment. Over time, these assets have the potential to generate long-term profits. For example, timber-rich land in Montana can provide income through sustainable logging, which explains why land in these areas tends to be pricier than in the more arid, resource-scarce regions of New Mexico.

State and Local Taxes

Property taxes and tax incentives for landowners vary by state, influencing the overall cost of land ownership. States with favorable tax climates include Texas and Nevada, which offer no state income tax to landowners, and Wyoming and Alabama, both known for their low property taxes, which can make land ownership more affordable.  

Most Affordable States To Buy Land in The United States

New Mexico 

  • Average Price Per Acre: $600 – $2,000
  • Population: 2.1 million
  • Cost of Living Index: 88.4
  • Counties To Buy Cheap Land: Luna, Catron, Valencia, Sandoval. 

New Mexico is another state where land prices remain relatively low, averaging around $700 per acre. As the fifth-largest state in the U.S., New Mexico covers approximately 121,590 square miles. The landscape includes sprawling deserts, verdant grasslands, broken mesas, and high, snow-capped peaks. 

Known as the “Land of Enchantment,” the exceptional affordability of the New Mexico land for sale is tied to its vast, open spaces and sparse population. The state appeals to those seeking large plots for ranching, farming, or homesteading. Agriculture here is a tradition with a substantial 95% of New Mexico’s farms being family-owned.

Counties like Luna often feature some of the cheapest land in the state. With its rich history, breathtaking scenery, and low cost of living, New Mexico is a hidden gem for land buyers. The state’s dry climate and natural beauty also make it an excellent location for those seeking a peaceful, rural lifestyle.

What makes NM unique for land buyers: Its investment potential, varied terrain with sprawling deserts and lush river valleys, and strong renewable energy focus, particularly in solar and wind power. 

Colorado

A scenic rural landscape at sunrise, featuring a green pasture with several horses grazing. In the cheapest state to buy land for homesteading, trees and farm buildings grace the background. A graphic logo with an "ez" icon is overlaid on the top left corner.
  • Average Price Per Acre: $1,100 – $2,810
  • Population: 5.8 million
  • Cost of Living Index: 120.5
  • Counties To Buy Cheap Land: Costilla, Saguache, Alamosa, Pueblo. 

While Colorado brims with ski resorts and outdoor recreation, it also offers affordable land options in certain areas for homesteaders, off-grid seekers, and cattle ranchers. On average, farmland in Colorado costs $2,200 per acre, but rural counties like Costilla often feature much cheaper land for sale in Colorado

Colorado’s diverse topography—from the majestic Rocky Mountains to fertile plains and rugged plateaus—provides opportunities for everything: agriculture, ranching, or building your own mountain retreat. The state’s appeal extends beyond affordability, offering incredible natural beauty, strong property value growth, and access to outdoor activities.

What makes CO unique for land buyers: Its world-renowned skiing, hiking, fishing, and hunting, rich farming and ranching history, and the focus on renewable energy and sustainability that aligns with buyers looking to live off-grid or explore eco-friendly land use options.

Montana

  • Average Price Per Acre: $890 – $1,280
  • Population: 1.1 million
  • Cost of Living Index: 100
  • Counties To Buy Cheap Land: Big Horn, Yellowstone, and Gallatin.

Montana, the “Big Sky Country,” is one cheapest state to buy land. The average farm real estate price per acre is around $1,200, but in less developed areas like Big Horn, prices drop even more. These remote regions provide excellent opportunities for ranching, farming, or creating your own private retreat surrounded by nature. 

With 57.6 million acres dedicated to farms and ranches, Montana –the fourth largest US state– ranks second in the nation for agricultural land, just behind Texas. No wonder many agricultural entrepreneurs choose to buy vast tracts of fertile Montana land for sale for their ventures

Most of Montana’s charm lies in its stunning scenery and outdoor recreation opportunities. From the towering peaks of the Rocky Mountains to its rolling plains and expansive forests, its varied topography caters to a wide range of interests, including hunting, fishing, and hiking. Also, its population density of just 7.4 people per square mile, the third-lowest in the United States is ideal for those looking for solitude and an escape from city life.

What makes MT unique for land buyers: Its growing popularity as a rural retreat and the increasing demand for recreational properties make it a smart investment. Land values in desirable areas near Bozeman or Missoula are steadily rising.

Texas

At sunset, a peaceful landscape unfolds with a field of hay bales and a lone tree, under a colorful sky scattered with clouds. A geometric design overlays this scene, while the image evokes thoughts of exploring the cheapest states to buy land and embrace homesteading dreams.
  • Average Price Per Acre: $2,200 – $2,800
  • Population: 30.5 million
  • Cost of Living Index: 94.2
  • Counties To Buy Cheap Land: Presidio, Hudspeth, El Paso and Culberson. 

As the second-largest state in the U.S., Texas is a landowner’s dream, offering a diverse range of terrains from coastal plains to rolling hills and arid deserts. It is also a national leader in cattle production and shows a strong agricultural tradition in crops like cotton and hay.

While the average farm real estate is around $2,800 per acre, rural areas in West Texas offer most of the most affordable Texas land for sale. Counties like Presidio and Culberson are known for their budget-friendly parcels, ideal for farming, ranching, or recreational use.

The Lone Star State also benefits from no state income tax, making it even more attractive for potential landowners. With a growing economy and a strong real estate market, buying land in Texas is affordable and a smart long-term investment.

What makes TX unique for land buyers: The resilience of the local rural land market, with statewide prices showing a steady annualized increase of 2.4% year-over-year through the third quarter of 2024. 

Wyoming

  • Average Price Per Acre: $740 – $1,960
  • Population: 584K
  • Cost of Living Index: 97.5
  • Counties To Buy Cheap Land: Natrona, Albany, Goshen, Weston. 

Wyoming is known for its unspoiled landscapes (from the rugged peaks of the Grand Tetons to the sprawling plains and high deserts) and low population density of just 6 people per square mile, making it an attractive option for land buyers. 

The average farmland per acre is approximately $975, but remote regions like Albany County and Weston County are particularly appealing for buyers looking for even cheaper land for sale in Wyoming. Land buyers also love the rich natural resources like coal, oil, and natural gas, strong agricultural heritage, and world-class recreation. 

The state’s tax-friendly climate, low property taxes, and relaxed regulations add to its appeal. Whether you’re looking for a ranch, a recreational property, or an off-grid hideaway, Wyoming offers a unique opportunity to own a piece of the West.

What makes WY unique for land buyers: Wyoming is perfect for those seeking peace and quiet, with plenty of remote land where you can truly escape the hustle of city life.

Arizona

A lush green agricultural field extends toward a range of rugged mountains under a clear blue sky, reminiscent of the cheapest states to buy land for homesteading. The left side features a teal geometric design with the text "ez" inside a hexagon.
  • Average Price Per Acre: $4,000 – $4,200
  • Population: 7.4 million
  • Cost of Living Index: 106.4 
  • Counties To Buy Cheap Land: Cochise, Mohave, Yavapai, Navajo.

Arizona land for sale has some of the lowest land prices in the U.S. While the average cost is approximately $4,200 per acre, there’s even lower-cost land in counties like Cochise and Mohave, where large plots of land can cost as little as $1,000 per acre. Factors contributing to its affordability include vast desert areas, low population density in certain counties, and limited agricultural land.

The Grand Canyon State attracts off-grid homesteaders, real estate investors, developers, and retirees looking for outdoor recreation, abundant sunshine (over 300 sunny days annually), and a growing population and economy with a thriving business environment and low taxes. 

Arizona offers a wide range of landscapes, from the arid Sonoran Desert to the cool, forested mountains of Flagstaff, so if you’re considering making a recreational land investment to enjoy hiking, camping, or off-roading, owning land in Arizona gives you access to all of that and more.

What makes AZ unique for land buyers: Arizona is known for its low taxes and minimal regulatory hurdles, making it attractive for developers and investors looking to capitalize on the state’s growth.

North Dakota

  • Average Price Per Acre: $1,050 – $2,600
  • Population: 784K
  • Cost of Living Index: 84.6
  • Counties To Buy Cheap Land: Burleigh, Dunn, Nelson, and Cass. 

North Dakota often flies under the radar when it comes to the cheapest states to buy land in. However, for savvy buyers, buying land in North Dakota poses significant savings. In 2024,  the average price of farm real estate in North Dakota was $2,260 per acre, far below the national average of $4,170 per acre, according to the USDA.  

Whether you’re interested in agricultural use, rural development, or investment, the state’s affordability means you can acquire more acreage for your money compared to states with higher land values.

North Dakota is a powerhouse when it comes to agriculture, boasting 39.3 million acres of farmland—that’s about 4.39% of all farmland in the United States. Agriculture dominates the state, with 90% of North Dakota’s land dedicated to farming.

Farthest from its immense agricultural potential, the Flickertail State is rich in natural resources, including oil and gas reserves and wind energy production. There are also opportunities for residential and commercial development in growing cities like Fargo and Bismarck. Top land buyers here include farmers and ranchers, off-grid enthusiasts, and land investors.

What makes ND unique for land buyers: Its vast stretches of land with large affordable plots in rural areas, growing infrastructure, and recreation across rivers, open plains, rolling prairies, and the badlands. 

The Average Cost of Land in The U.S.

Land values across the United States have been steadily climbing, driven by increasing demand for property and ongoing economic growth. In 2024, the USDA reported that the average value of U.S. farm real estate reached $4,170 per acre, marking a 5% increase from 2023. Cropland averaged $5,570 per acre, while pastureland came in at $1,830 per acre.

This upward trend isn’t new—farm real estate values have nearly doubled since 2010. Key drivers include urban expansion, improved infrastructure, and a growing population. That said, the cost of land varies widely by region. 

States like Arizona and New Mexico offer more budget-friendly options, while high-demand areas like California or Rhode Island continue to command premium prices.

Final Thoughts

A scenic view of a grassy field with a "LAND FOR SALE" sign invites you to the cheapest state to buy land for homesteading. The land is bordered by a white fence and lined with trees on one side. A logo with "ez" appears on the left, featuring a honeycomb pattern. The sky is partly cloudy with sunlight.

Buying land doesn’t have to feel like a far-off dream; if you picture yourself building a cozy cabin in the Arizona desert, starting a ranch in Texas, or just owning your own little slice of Montana’s Big Sky, there’s a piece of land out there waiting for you.

These seven states prove that land ownership doesn’t have to come with a sky-high price tag. The right strategy is ​​to match the type of land with your objectives, conduct detailed research, and balance the costs of building and utilities with the purchase price.

From there, you can snag an affordable plot and start shaping it into whatever you imagine—a weekend getaway, a prosperous homestead, or just a smart investment for your or your family’s future. So, pack your boots, grab a map, and start exploring!

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Preston Guyton