The Best Places to Buy Land in the U.S. for Investment

Investing in land opens up a world of opportunities for everyone at all stages of investing. The United States’ vast and diverse landscape is a treasure trove for those looking to buy land for various purposes. Find everything from raw, untouched land for conservation to parcels ready for real estate development. Real estate investors will find many properties to buy tailored to their goals and preferences.

Is buying land part of your investing goals? Explore the best places to buy land in the U.S. this decade, considering investment factors like affordability, market trends, and the value appreciation potential for the land.

Factors When Buying Land

Much like any real estate investment, you’ll want to evaluate a few fundamentals to feel reassured you’re making a smart, profitable purchase. Land investment can be risky, and is considered speculative. But land buyers can find opportunities as long as they’re well aware of the risks and what to look for in their rural land purchase.

• Location and accessibility: Consider the proximity to urban areas, transportation hubs, and natural resources. The further a parcel of land is from developed communities, the more affordable land prices you’ll find–but also slower price appreciation.

• Zoning regulations and land use: Under raw land are multiple niches, like agricultural land, recreational land, or residential development–to name a few. Verify that the land is zoned for your intended residential, commercial, or agricultural use. Changing zoning may be possible, but local regulations may draw out the process and increase ownership costs. Additionally, check if there are land easements that govern the access or future property use.

• Environmental factors: Assess the land’s natural features, such as water sources, soil quality, and wildlife habitats. The weight you put on environmental features depends on the intended use of the land. For instance, water rights will matter if you’re interested in western farmland.

• Market demand and trends: Research the average price of land in the area and understand the cost of living. Identify areas with growing demand for local land. Population growth signals a need for more residential and commercial development and thereby, a potential for appreciation. A robust real estate industry and market can enhance your investment.

• Property taxes and fees: Understand the tax implications and any additional fees associated with land ownership. Rural land may have lower property taxes, but they’ll still need to be paid or you risk a tax lien, sale, or foreclosure.

• Passive income: Land’s speculative nature comes from the low potential for income generation. Most land investors are relying on a hold strategy, selling years down the line for value appreciation gains. Some unimproved properties do have a low or limited potential for income generation. These include recreational land leases, such as to hunt clubs, farm leasing, timber harvesting, or mineral production.

Strategies for Land Investment

You’ll use a different tactic for land purchases than commercial real estate purchases. The advantages are different, too.

Adding land to a real estate investment portfolio helps diversify at a more affordable cost. Land relies on long-term holding to ride out market fluctuations and capitalize on long-term appreciation. That also protects it more from market fluctuations.

Land can also be improved, and through that, increases the value of the investment. Add to the land, such as building infrastructure for residential or commercial development or improving soil quality for agricultural uses.

As mentioned, land isn’t a significant driver of annual income like a commercial property where tenants pay on leases. However, there are opportunities for income generation. Generate passive income by leasing fertile land to farmers, ranchers, or other users.

Finding the Best Places to Buy Land

The United States has over 1.3 billion acres of privately held land. Much of that is still agricultural or raw land. That’s an opportunity for the savvy investor. But how can you find land for sale? And how do you know it’s the right deal for your investment goals?

Research and Due Diligence

Start with thorough research on the local real estate market and land prices. Drill down from the state level to regional and metropolitan. Even in a massive state with diverse terrain, like Texas, you’ll find land prices swing across its markets.

Assess the land’s natural features, zoning regulations, and environmental factors. Some land for sale may not be ideal for the best returns, such as wide–open spaces in the western deserts of Arizona and Utah or the rugged Rocky Mountains and their back wilderness areas.

Consult with local experts, such as real estate agents and attorneys, to ensure a smooth transaction. Each state handles real estate deals differently and may require different due diligence checks in the land-selling process. Your real estate agent may also point out areas of concern, such as mineral rights for the land or zoning challenges.

Cheap Land for Sale

Find the right balance between low land prices and appreciation potential. Look for land in rural areas with lower property taxes and prices per acre. Consider purchasing land in states with lower costs of living but near markets with development potential.

Research online marketplaces like ezHomesearch to find cheap land for sale. These platforms provide various options, from rural land with stunning scenery to urban areas with commercial potential. Additionally, consider auction sites and government surplus listings, which may offer vacant lots and undeveloped properties at competitive prices. Networking with local real estate agents and attending land auctions can also uncover hidden gems that aren’t widely advertised.

Economic Opportunities

Look into areas with emerging industries or job growth. A strong economy boosts real estate markets, making these regions attractive for land purchases. Regions with new roads, public transportation, or utilities are prime spots. Such developments often lead to increased land value. Areas with favorable government policies on rural development or incentives for investment properties also tend to be promising.

Top States for Land Investment

Here’s a quick comparison table:

State	Key Feature	Average Price
Texas	Ample farm and ranch land; quickly expanding urban areas	Low-Moderate
Arizona	Strong market, desert beauty, growing metros	Moderate
Colorado	Mountain views, quality life, farmland and expanding metros	Low-Moderate
Tennessee	Low cost of living, fertile farmland, population growth	Moderate
Florida	Population growth, high demand for property	High
California	High population, property demand	High
Oregon	Affordable land, diverse landscapes	Moderate
Georgia	Expanding metropolitan area, recreation and farmland	Moderate
New Mexico	Affordable land	Low
North Carolina	Diverse landscapes with farmland and recreation land, growing metros	Moderate-High

When choosing good places to buy land in the USA, we went beyond price per acre and factored in market trends and population growth. Those areas have the best land appreciation potential, making them smarter for real estate investment properties.

Western States

Arizona

Known for its arid desert regions and affordable land prices, Arizona is an attractive option for land buyers. The land for sale here is ripe for development, especially around expanding population hubs like Phoenix and Tuscon. Find land tagged for residential or commercial development, recreational land, and farmland.

California

With its diverse landscapes and strong economy, California’s places to buy land span urban and rural tracts. In the metro areas, infill land and industrial land are prime targets. However, California also has abundant agricultural production, so land for those uses also can make sense. Other parts of sunny California are ideal for homesteading or holding onto conservation land. The downside will be the property taxes and cost of acquisition. The average price per acre is among the highest in the U.S.

Colorado

Colorado is a popular destination for outdoor enthusiasts and land investors thanks to its mix of mountains, forests, and plains. The great outdoors is part of Colorado’s popularity. Find lower land prices in the more outlying regions, while development encourages appreciation near Denver and the ski resorts. The more rural areas have large tracts of land suited for cattle ranches and farming, but you’ll want to pay attention to the water rights attached to land parcels. Low property taxes add to its appeal.

Oregon

Lush forests and natural beauty attract people to Oregon, but for land buyers, Oregon is sought-after because of its cheap land and low property taxes. Buyers seeking a rural lifestyle will have plenty of places to look, from the coastline to the drier eastern climate. Oregon also has a growing population and development in its urban areas. That helped its cropland value increase by 6% in 2023, well above the US average of 4.7%.

Southern States

Florida

Florida may not have the most affordable land for sale as a popular tourist and retirement destination puts the property in high demand. However, that same demand represents land investment opportunities in the residential development, tourism, and hospitality sectors. Seven of the ten fastest-growing cities for 2024-2025 were based in Florida. At the last analysis, agricultural land values increased by 9% and pastureland by 13%. The Sunshine State also has lower property taxes.

Georgia

With its growing economy and cheap land prices, Georgia is an attractive option for land buyers. Georgia has ample wide open spaces ideal for agricultural or recreational purposes. The metropolitian area around Atlanta are also expanding, so its land for sale is positioned for solid value increases.

Texas

As the second-largest state in the US, Texas often comes to mind as a place to buy land. The state’s diverse range of landscapes presents multiple opportunities for buying land in nearly every niche. Find fertile farmland, ranch land, and parcels near fast-expanding cities like Dallas-Fort Worth and Houston. Development into commercial property is particularly on the move in the Lone Star State. It makes sense, as six of ten fastest-growing markets in 2023 were based in Texas. The tax environment is friendly towards businesses and agricultural landowners, too.

Tennessee

Low taxes and cheap land for sale are fueling growth in Tennessee. Land prices jumped 11% in the last analysis, one of the fastest-growing appreciations for agricultural land in the U.S. Great deals can be found across all three Tennessee regions. Nashville is one of the hottest cities for rural development, as its outlying communities have residential property values near a median $1,000,000. The demand is also putting pressure on its land prices, making it ideal for the sharp-eyed investor.

Other States

New Mexico

Affordable land is what stands out when looking at New Mexico. Its price per acre is low on the statewide level. The desert land is particularly low cost. Making a smart purchase here opens the door to a solid return on investment. Look for cheap land near its growing cities or where interest has increased in solar energy, space industry, or international commercial ventures. Pastureland value rose by 11% in 2023, but with an average price of $700 per acre, it’s still incredibly affordable.

North Carolina

A growing economy and affordable land prices position North Carolina as a popular destination for land investors. Central and eastern ideas are prime rural development and agricultural ideas. Meanwhile, western North Carolina’s stunning scenery and outdoor activities attract retirees and vacationers. Its cropland values jumped by 7% at the last check.

Tips for a Successful Land Investment

Buying Land for Investment

Setting clear goals and objectives for your investment is crucial. Developing a comprehensive investment strategy, which includes diversification and long-term holding, can help you achieve these goals. Monitor market trends and adjust your strategy accordingly to stay ahead in the ever-evolving real estate landscape. By doing so, you can ensure that investing in land remains profitable and aligned with your investment objectives.

Emerging Markets

Investing in emerging markets presents unique opportunities for land buyers, particularly in sectors like renewable energy and sustainable agriculture. By focusing on areas with growing demand and limited supply, investors can capitalize on the potential for significant returns. Additionally, researching government incentives and tax credits associated with buying land in these markets can further enhance profitability and make these ventures more attractive. Identifying such opportunities requires thorough research and strategic planning, ensuring investments align with market trends and future growth potential.

Making a Smart Land Investment

Enlist the expertise of a seasoned real estate agent or attorney specializing in land deals to navigate the complexities of your transaction seamlessly. Dive deep into local zoning regulations and land use policies to sidestep any unexpected obstacles that might arise. With this knowledge, you’ll craft a dynamic strategy that empowers you to maximize potential returns in your portfolio.