Introduction
Why Buying Land is an Attractive Investment Choice in 2025
In recent years, land has emerged as one of the most appealing investment options, especially as people increasingly seek financial security and long-term growth.
The real estate market has evolved significantly, with many investors shifting their attention away from traditional residential and commercial properties to rural and undeveloped land.
This shift in focus can be attributed to a variety of factors, but perhaps most importantly, the growing interest in self-sustainability, rural living, and the appeal of owning land for both personal and financial purposes.
The global pandemic of 2020 redefined the way people view their living environments. With remote work becoming more mainstream and people rethinking their lifestyles, the desire to move away from overcrowded cities and embrace a more peaceful, self-sufficient way of living has surged.
Buying land offers a unique opportunity to build a sustainable, off-the-grid lifestyle, while also providing the potential for appreciating property values over time. The allure of investing in raw land—whether for personal use, farming, future development, or as a hedge against inflation—has captured the attention of a new generation of buyers.
Furthermore, the traditional approach to real estate investment has started to evolve. While cities and suburbs remain desirable locations for real estate purchases, there is an increasing awareness that land outside of metropolitan areas holds significant potential for future growth and current recreational or off-grid use.
This has led many investors to turn their attention to rural areas where land prices are still affordable, offering an excellent opportunity for long-term wealth creation.
What This Guide Will Cover
In this comprehensive guide, we’ll take an in-depth look at the best states to buy land in 2025. Whether you’re a seasoned investor or a first-time land buyer, understanding the key factors that influence land purchases is critical to making an informed decision.
This guide will cover everything you need to know to successfully navigate the land-buying process, from understanding state-specific considerations to knowing where the best land deals are located.
We will examine the top states to invest in land based on criteria such as land price, market growth, available infrastructure, and quality of life. Additionally, we’ll explore the legal and regulatory frameworks that vary by state, which can significantly impact your investment success.
You’ll also find insights into financing options and the potential returns you can expect from purchasing land in each of these states.
Why Choosing the Right State Matters
The area you choose to buy land in can make or break your investment. While almost all states have good and bad areas to invest in, some states have a much higher overall success rate for investors. Land prices, property taxes, zoning laws, and market trends can vary dramatically depending on location, and the right choice could mean the difference between a profitable venture and a challenging one.
For example, some states have lower property taxes, making them more attractive for long-term investment. Others may have restrictive zoning laws that limit what you can do with your property, which can impact its future value.
Meanwhile, some areas may offer opportunities for rapid growth, while others remain more stable and predictable in terms of land value appreciation. These differences highlight why understanding the local market conditions and regulations is essential to making an informed purchase.
Moreover, factors like climate, proximity to urban centers, and local amenities can influence the long-term viability of your land investment. Whether you’re looking to buy land for agricultural use, recreational purposes, or future development, choosing the right state with the right mix of legal, financial, and environmental factors is key to making the most out of your investment.
In the following sections, we’ll explore which states present the most promising opportunities for buying land in 2025 and why they stand out in the current market. Whether you’re buying land as a long-term investment, a place to build a homestead, or as a means of diversifying your real estate portfolio, this guide will help you make the best decision for your goals.
Section 1: Understanding the Basics of Land Buying
Why Buy Land?
Buying land is one of the oldest and most stable forms of investment, and for good reason. Land offers long-term value, independence, and the potential for significant financial return. Whether you are an investor, a homesteader, or someone looking to diversify their portfolio, land can provide both tangible and intangible benefits.
Long-Term Investment Potential – One of the primary reasons people buy land is for long-term financial growth. Unlike other assets that can be heavily impacted by economic downturns, land tends to appreciate over time. As the population grows and urban development expands, the demand for land typically increases, particularly in areas close to growing cities or areas with desirable resources, such as water or minerals.
For example, rural areas that are initially underdeveloped may see a significant rise in value as infrastructure, like roads and utilities, is built in the future.
Historically, land has been a reliable store of value and a hedge against inflation. While stocks and bonds can fluctuate in price due to market volatility, land generally holds its value and can even appreciate during times of economic instability, making it a safe haven for wealth preservation.
Freedom of Land Use – Land offers a level of flexibility that other types of real estate or investments don’t. Depending on the zoning laws in the area, land can be used for various purposes: farming, residential development, recreational activities, or even commercial development.
This freedom is particularly appealing to those who are looking to establish a homestead, develop property, or invest in land for its natural resources.
For example, agricultural land can be cultivated for crops, livestock, or other sustainable farming practices, while recreational land might be used for hunting, hiking, or off-roading.
Many buyers appreciate the ability to shape the land to suit their personal needs, whether it’s for a family retreat, a self-sustaining homestead, or a profitable agricultural operation.
Land as a Hedge Against Inflation – During times of inflation, land can serve as a valuable safeguard against the eroding purchasing power of currency. Unlike paper assets, land isn’t subject to the same economic pressures, and its value often increases as inflation rises. This is especially true in areas where land is in limited supply or has high demand, such as regions near expanding cities or popular recreational areas.
Historically, land values have outpaced inflation, providing owners with not only the preservation of capital but also the potential for significant appreciation. For this reason, many investors turn to land as a secure and lucrative alternative to other more volatile assets.
Key Factors to Consider When Buying Land
Before diving into the specifics of the best states to buy land in 2025, it’s important to understand the factors that influence a land purchase. These elements will help you assess whether a piece of land is a good investment and align it with your goals.
Land Prices & Affordability – One of the first things to consider when buying land is its price, which can vary drastically depending on the location, size, and type of land. Generally, rural land tends to be more affordable than urban land, but there are exceptions.
For instance, land in up-and-coming areas with growing demand can be more expensive, even if it’s located in a rural region. Similarly, land near major cities, transport hubs, or tourist destinations will command a premium due to its potential for development.
On average, agricultural land is typically less expensive than land that is ready for residential or commercial development. However, it’s essential to compare the price per acre based on the land’s intended use, proximity to infrastructure, and its long-term development potential.
It’s also worth considering that land that is farther from cities or urban centers may be more affordable upfront but could incur higher costs over time if you plan to develop it.
Zoning & Land Use Regulations – Zoning laws and land use regulations can greatly impact the use and future value of your land. Zoning regulations determine how a property can be used—whether it’s for residential, agricultural, commercial, or industrial purposes. Before buying land, you should research the local zoning laws to ensure the property can be used for the intended purpose.
Some properties may have restrictions that limit what you can build or develop, or they might require special permits for specific uses. For example, a piece of land zoned for agricultural use might not allow you to build a commercial business without going through a lengthy approval process. Be sure to check the local county or city regulations before making any decisions.
Location & Accessibility – Location is crucial when it comes to buying land, especially if you plan to use it for residential or commercial purposes. Consider the proximity of the land to key amenities such as schools, hospitals, shopping centers, and major highways. Rural land may offer greater privacy and potential for future growth, but it could also lack access to essential services and infrastructure. Of course, for some, remoteness is the goal! They may want to be “off grid” or have large acreage for another purpose. Knowing what type of buyer fits with the property based on its location is key.
Accessibility is also a key factor. Is the land easily reachable by a road, or will you need to build access routes? Properties located in remote areas might require additional investment to make them accessible, which could impact your overall budget and timeline. It also adds a lot more profit potential, so everything must be weighed out.
Topography & Climate Considerations – The topography and climate of a piece of land will affect how it can be used and developed. For example, flat land is generally easier to build on than land with steep slopes or difficult terrain. But steeper land often offers the best views and can thus make it very desirable.
Climate considerations include rainfall patterns, average temperature, and the risk of natural disasters like floods, wildfires, or hurricanes. These environmental factors can have long-term implications for the viability of your land, as well as the costs associated with developing it.
For instance, land in a flood zone may require additional flood insurance or infrastructure improvements to mitigate the risks. Land in a flood plain may not be buildable at all.
Different Types of Land
The type of land you choose to buy depends on your investment goals. There are various types of land, each with its own set of advantages and potential drawbacks.
- Agricultural Land – Agricultural land is used primarily for farming or ranching and is a popular choice for individuals interested in growing crops, raising livestock, or starting a farm. Agricultural land often comes with certain zoning laws and regulations, so it’s essential to check that the property is zoned appropriately for farming or other agricultural uses.
- Recreational Land – Recreational land is typically purchased for non-commercial use, such as hunting, fishing, hiking, off-roading, or camping. These properties can be found in rural or remote locations, often offering solitude and access to natural landscapes.
- Residential Land – Residential land is intended for building homes or developing residential communities. If you’re looking for land that a home can be built on or for land that can be subdivided for this purpose, generally residential land is the way to go. These lots make up 90% of the properties that we and our students invest in.
- It’s important to consider factors like access to utilities, zoning restrictions, and proximity to schools, shops, and other amenities when purchasing residential land. You may also want to look for areas with a growing population and expanding infrastructure to ensure the future value of your property.
- Commercial Land – Commercial land is typically used for business or industrial purposes. This could include land for retail shops, office buildings, or manufacturing plants. Commercial land is often more expensive than residential or agricultural land, but it can provide excellent returns, particularly if located in a high-traffic area with strong demand for commercial space.
- Off-Grid Land – Off-grid land refers to parcels that are located in remote areas without access to public utilities such as electricity, water, and sewage systems. This type of land is often used by individuals looking to live sustainably, build off-grid homes, or create eco-friendly communities. Many investors all buy such properties to use for “land banking”, which we will discuss in another article.
Off-grid properties offer greater freedom and lower costs, but they have a smaller buyer pool than other types of properties. There is an opportunity for substantial returns with such properties if use for such projects as wind or solar farms.
Section 2: Factors to Consider When Choosing the Best State to Buy Land
When considering purchasing land, choosing the right state can make all the difference in the success of your investment. Factors such as land prices, legal regulations, infrastructure, and market growth all play crucial roles in determining both the current and future value of your land. Below are the key elements to consider when evaluating which state is the best for buying land in 2025.
Land Prices & Market Trends
Average Cost Per Acre by State and Region – Land prices vary dramatically by location, type of land, and proximity to urban centers. The average price per acre of land can be influenced by a range of factors, such as demand, local economies, and land accessibility. For example:
- Rural Areas: In states like Arkansas, West Virginia, and parts of Texas and Nevada, you can find land for as little as $1,000–$3,000 per acre. These regions tend to have vast stretches of undeveloped land and are often considered ideal for agricultural purposes or off-grid living.
- Suburban and Semi-Rural Areas: In states like Tennessee, Georgia, and Arizona, land prices typically range from $5,000 to $10,000 per acre in less densely populated areas. These states often experience growth due to urban sprawl, attracting both residential and commercial buyers.
- High-Demand Areas: States with booming economies or high population growth, such as Colorado, California, and Florida, can see land prices soar to $20,000 per acre or more in desirable areas. These states are often more expensive but also offer higher potential for development and long-term appreciation.
How Real Estate Trends Affect Land Prices – Real estate trends, such as the migration of people from cities to rural areas, can have a significant impact on land prices. The COVID-19 pandemic accelerated this trend, with many people seeking more space, lower cost of living, and an escape from crowded urban environments.
As a result, rural and suburban areas in states like Idaho, Montana, and Nevada experienced significant price increases. This trend of “rural migration” is expected to continue in 2025, meaning demand for land in these areas could remain strong, potentially driving prices even higher.
Additionally, areas near emerging tech hubs or business districts may see a rise in land values as industries seek to expand outside of traditionally expensive urban centers. This is already happening in states like Texas, Utah, and North Carolina, where tech companies and startups are driving up demand for land and real estate.
Legal Considerations & Zoning Laws
State-Specific Zoning and Land Use Laws – Before purchasing land, it’s critical to understand local zoning laws, as they can significantly affect how you can use the land and what you can build on it. Zoning laws determine whether a property is designated for residential, commercial, agricultural, industrial, or mixed-use purposes.
- Agricultural Land: In many states, agricultural land is subject to specific zoning regulations that govern farming, livestock, and resource extraction. States like Nebraska, Iowa, and Kansas have comprehensive agricultural zoning laws that help protect farmers and ranchers from overdevelopment in rural areas.
- Residential Zoning: Some states, such as Florida and California, have specific zoning laws governing where residential development can occur. Understanding these regulations is particularly important if you plan to build a home or develop property.
- Commercial Zoning: If your goal is to develop land for commercial use, be aware that states with more relaxed zoning laws, like Texas or Nevada, may provide greater flexibility for land development. Conversely, states with stricter zoning, like New Jersey or Connecticut, may have more limited options for commercial development.
Importance of Understanding State-Level Regulations – In addition to zoning laws, it’s important to consider other legal factors like land ownership restrictions, building codes, and environmental protections. For instance, some states may have more restrictive regulations related to water rights, mineral extraction, or conservation easements.
- Water Rights: States such as Colorado and Wyoming have specific water rights laws that regulate the use of water on agricultural and recreational land. If you plan to farm or develop land, you need to research how water is allocated in your area of interest.
- Environmental Protections: States with strong environmental laws, like Oregon and Washington, may have regulations in place to protect natural habitats, wildlife, and forests. While these protections are important for conservation, they may limit your ability to develop the land in certain ways.
Land Accessibility & Infrastructure
What Defines Easy Access? Roads, Utilities, Public Services – Land accessibility is another crucial factor that can significantly impact both the cost of purchasing land and its development potential. Accessibility refers to how easily you can reach the property and whether it has the necessary infrastructure for your intended use.
- Road Access: Ideally, your land should be legally accessible by a paved road or an established dirt road. Properties that are difficult to reach, especially in remote areas, may have lower upfront costs but could incur higher development costs for access roads and utilities.
- Utilities: While some land buyers are seeking off-grid properties and prefer land without utility access, most residential, agricultural, or commercial land buyers need to consider the availability of water, electricity, and sewage systems, whether public or private, such as with a septic system.. States like California, Florida, and Texas have relatively well-developed infrastructure in both urban and rural areas, while remote states like Nevada and Alaska may require significant investment in infrastructure development.
- Public Services: Proximity to fire departments, schools, healthcare, and other essential services can also influence a land purchase decision. For example, if someone is looking to buy land for a homestead, living near a major city with good healthcare access might be important.
Impact of Development on Land Investment
The level of development in an area can influence both the price and the future value of land. Urban areas are typically well-served by infrastructure but come with higher costs.
In contrast, rural areas often offer more affordable land, but lack of infrastructure might require large investments to develop.
- Urban Expansion: Areas experiencing rapid urbanization, such as parts of Texas, Utah, and Arizona, may see future increases in land values as cities expand and demand for suburban properties grows. Investing in such areas can lead to high returns, but it’s important to assess the infrastructure, public services, and zoning laws beforehand.
- Remote Land: Remote, undeveloped land in states like Wyoming, Montana, and Alaska can be appealing for those seeking off-grid living or large-scale agricultural development. However, land in these areas may require significant upfront investment for access roads, water supply, and utility connections.
Economic Opportunities & Growth Potential
Key States Experiencing Economic Booms – Economic growth can drive land demand, so it’s essential to consider whether the state you’re interested in is experiencing growth in key industries like technology, agriculture, or manufacturing.
- Tech Hubs: States like Texas (especially Austin), Utah, and North Carolina have become major tech hubs, attracting young professionals and driving demand for residential and commercial real estate. This demand is spilling over into rural and suburban areas as workers seek affordable land and larger homes outside major cities.
- Agribusiness: States with strong agricultural sectors, such as Iowa, Nebraska, and Arkansas, offer great opportunities for farming and ranching. Demand for agricultural land is expected to remain strong in these regions as the global need for food production increases.
- Logistics and Manufacturing: Areas with a strong logistics or manufacturing presence—such as Georgia, Ohio, and Tennessee—are seeing increased demand for commercial land due to growth in the supply chain and industrial sectors.
Job Opportunities and Future Market Growth – Land values are often influenced by the economic opportunities available in the state. Areas with increasing job opportunities or industries expanding into rural areas tend to see higher land demand.
If you’re purchasing land as a long-term investment, states experiencing economic growth could offer a better return on investment over time.
Taxes & Land Ownership Costs
Property Tax Variations by State – Property taxes can significantly affect the long-term cost of land ownership. While some states have high property tax rates, others offer relatively low taxes, which can make a difference in the overall investment cost.
- Low-Tax States: States like Wyoming, Alaska, and South Dakota are known for their low property taxes. These states also often offer additional tax incentives to landowners, making them an attractive choice for those looking to minimize ongoing costs.
- Higher-Tax States: States like New Jersey, Connecticut, and Illinois have some of the highest property taxes in the country. While these states may offer strong infrastructure and services, the high tax burden can eat into your returns, especially if you’re holding the land for the long term.
Other Ownership Costs – In addition to property taxes, landowners may face other ownership costs, such as maintenance, insurance, and registration fees. These costs vary by state and can influence the profitability of an investment, particularly for those looking to use land for agricultural or recreational purposes.
Climate, Terrain, and Natural Resources
States with Favorable Climates for Agriculture, Living, or Recreation – Climate is a major factor to consider, especially if you’re planning to invest in land used for farming, ranching, or outdoor activities. States like California, Oregon, and Florida offer mild climates that are ideal for agriculture and year-round outdoor recreation, making them prime spots
Section 3: Top 10 States to Buy Land in 2025
When it comes to buying land, the right location can make all the difference in the long-term success of your investment. While nearly every state has both opportunities and challenges, the states outlined here have solid overall investment fundamentals.
Whether type of land you are looking to invest in, these 10 states offer some of the best prospects in 2025. Let’s take a closer look at each state’s unique attributes and why they’re considered top destinations for land buyers.
Texas: The Lone Star Land Investment
Popularity, Land Prices, and Opportunities for Agriculture and Residential Land – Texas remains one of the most attractive states for land buyers due to its vast size, relatively affordable prices, and diverse land-use opportunities.
The state is known for its expansive ranches, fertile agricultural land, and residential development potential. Land prices vary dramatically depending on the region, but even in rapidly growing areas like Austin, rural properties remain more affordable compared to other states with similar opportunities.
- Agricultural Land: Texas is one of the nation’s leaders in agriculture, offering vast areas of farmland perfect for crops and livestock. Areas like the Texas Panhandle and the Central Plains provide high-quality soil and a favorable climate for farming.
- Residential Land: With Texas’ booming population and strong economic growth, residential land—particularly near cities like Houston, Dallas, and San Antonio—is in high demand. More people are moving to Texas due to its low cost of living and business-friendly environment.
Booming Job Market, Infrastructure Growth, and Business-Friendly Environment – Texas continues to experience population growth, largely driven by its thriving job market, which includes major sectors like tech, energy, and healthcare. This growth fuels demand for both residential and commercial land, making it a prime location for long-term investment. Additionally, Texas is known for its business-friendly environment, with minimal regulations and no state income tax, making it a desirable place for both individual buyers and businesses alike.
Ideal for – Agricultural investors, residential developers, off-grid enthusiasts, and anyone looking for a thriving, diverse land market.
Florida: Sunshine State of Land Investment
Growing Demand for Recreational Land, Waterfront Properties, and Agricultural Land – Florida is one of the top destinations for land buyers due to its unique mix of beautiful beaches, fertile farmland, and year-round recreational opportunities. The state is experiencing an influx of new residents, drawn by its favorable tax policies, warm climate, and vibrant economy.
- Recreational Land: The state’s diverse terrain—ranging from wetlands and swamps to sandy shores and forests—makes it a haven for recreational land buyers. With an ever-growing demand for hunting land, fishing properties, and off-grid escapes, Florida is a great place for outdoor enthusiasts to find their dream property.
- Waterfront Properties: Florida is famous for its stunning waterfront properties. Whether on the Gulf Coast or the Atlantic, land buyers are clamoring for oceanfront, lakefront, and riverfront parcels, which have seen significant price increases in recent years.
- Agricultural Land: The state’s extensive agriculture, particularly citrus and sugar production, continues to drive demand for farmland. Florida’s warm climate allows for year-round growing seasons, offering good investment opportunities for farmers.
Tax Benefits and the Rising Migration to the State – Florida’s tax-friendly policies—particularly its lack of a state income tax—make it an attractive place to live and invest. The state’s population growth, driven by migration from other states, is contributing to increased demand for residential and recreational land. This trend is expected to continue as Florida’s economy thrives.
Ideal for – Investors in waterfront or recreational land, retirees, agricultural buyers, and those looking to take advantage of tax benefits.
Tennessee: The Volunteer State for Affordable Land
Affordable Land Prices, No State Income Tax, and Growing Investment Potential – Tennessee offers some of the most affordable land prices in the Southeast, making it a top choice for buyers looking for residential, agricultural, or recreational land.
With no state income tax, Tennessee is also one of the most tax-friendly states in the U.S., which is appealing to both individual investors and businesses.
- Residential Land: The combination of affordable land and a lack of state income tax makes Tennessee a top choice for those seeking to build a home or develop a property. Areas like Nashville are experiencing strong population growth, while rural areas remain highly affordable.
- Agricultural Land: Tennessee’s fertile soil and long growing seasons make it an ideal location for farming. The state produces a range of crops and livestock, including soybeans, corn, and cattle.
- Recreational Land: With beautiful rolling hills, lakes, and rivers, Tennessee is also a popular destination for outdoor recreation. Hunting, fishing, and hiking are popular activities, which makes recreational land a valuable investment.
Ideal for – Homebuilders, farmers, recreational buyers, and those seeking tax benefits in a low-cost environment.
Arizona: Desert Land with Boundless Potential
Desert Land for Off-Grid Living, Agriculture, and Residential Development – Arizona offers a unique set of opportunities for land buyers, particularly those interested in desert land and off-grid living. The state’s wide-open spaces and low land prices make it ideal for individuals looking for seclusion or a self-sustaining lifestyle.
- Off-Grid Living: Arizona is a top destination for off-grid living enthusiasts due to its vast desert landscapes and sunny climate, making solar power a viable energy source. The state’s remote land can be incredibly affordable, allowing buyers to live independently in a peaceful, natural environment.
- Agriculture: While Arizona’s desert climate may seem inhospitable at first glance, it offers significant opportunities for certain types of agriculture, such as growing crops in irrigated areas and raising livestock.
- Residential Development: Arizona’s growing population, particularly in Phoenix and Tucson, is driving demand for residential land. Buyers are flocking to both urban and rural areas to build homes and develop properties.
Land Price Trends and Opportunities for Recreational Buyers – In recent years, land prices in Arizona have remained relatively affordable, with rural properties offering exceptional value. As more people seek to move to the state for its low cost of living and outdoor lifestyle, Arizona remains a prime location for land investment.
Ideal for – Off-grid buyers, agricultural investors, recreational land seekers, and those interested in affordable land with long-term growth potential.
Georgia: Affordable Farmland and Expanding Suburbs
Excellent for Farmland and Residential Development – Georgia is one of the best states to buy land in 2025, particularly for those interested in farming, ranching, or residential development. The state’s mix of fertile farmland, growing suburban areas, and low-cost land make it a strong contender for land buyers.
- Farmland: Georgia remains one of the top agricultural states in the U.S., producing a wide variety of crops such as peanuts, cotton, and pecans. Its fertile soil and favorable climate provide solid opportunities for agricultural land buyers.
- Residential Development: As Atlanta’s metro area continues to grow, there’s an increasing demand for land in surrounding counties. Georgia’s growing population, combined with affordable land prices, is driving the expansion of suburban developments.
- Recreational Land: With its mild climate and varied terrain, Georgia offers ample opportunities for recreational land buyers. From hunting and fishing to hiking and camping, the state is a prime location for outdoor enthusiasts.
Affordable Land Prices with Growing Urban Sprawl – Land in Georgia remains affordable compared to other southern states, especially in rural areas. As urban sprawl continues to push outward from cities like Atlanta, land values are expected to rise, offering long-term investment potential.
Ideal for – Farmers, residential developers, recreational buyers, and investors looking for strong growth potential.
Colorado: The Ultimate State for Outdoor and Recreational Land
The Ideal State for Recreational Land and Vacation Properties – Colorado’s mountainous terrain, expansive national parks, and outdoor lifestyle make it a top destination for recreational land buyers. The state offers incredible opportunities for hunting, fishing, hiking, and skiing, attracting outdoor enthusiasts from around the world.
- Recreational Land: Whether you’re looking to purchase land for a vacation home, recreational retreat, or hunting ground, Colorado provides diverse opportunities. The state’s stunning mountain views and access to outdoor activities make it ideal for people seeking a second home or retreat.
- Residential Development: Areas near Colorado Springs, Denver, and Boulder continue to see strong demand for residential land. As the state’s population grows, so does the need for new housing and development, particularly in suburban areas.
Impact of Urban Expansion and Outdoor Tourism on Land Prices – As Colorado continues to grow in popularity, both as a tourist destination and a place to live, the demand for land is expected to increase. Properties near urban centers and outdoor hotspots like Aspen, Vail, and Breckenridge are seeing strong price appreciation.
Ideal for – Recreational buyers, vacation property investors, outdoor enthusiasts, and those seeking a mix of urban amenities and natural beauty.
Missouri: Affordable Land with Flexibility
Affordable Rural Land with a Focus on Agriculture, Recreational Land, and Residential Development – Missouri is one of the most affordable states for land buyers, especially for those interested in rural or agricultural land. The state offers large tracts of farmland and recreational properties at a fraction of the cost found in other parts of the country.
- Agricultural Land: Missouri is an agricultural powerhouse, with vast areas dedicated to farming and ranching. Crops such as corn, soybeans, and wheat are major agricultural staples, making it an excellent choice for agricultural investors.
- Recreational Land: The state’s natural beauty, with its lakes, rivers, and forests, offers excellent opportunities for hunting, fishing, and camping.
- Residential Development: Missouri is increasingly attractive for those looking to build homes, particularly in growing cities like St. Louis and Kansas City, where there is an expanding demand for suburban development.
Low Taxes and Land Use Flexibility – Missouri’s relatively low property taxes and land use flexibility make it an appealing place for long-term investment. Whether you plan to farm, build, or use the land for recreation, Missouri provides a range of possibilities.
Ideal for – Agricultural investors, recreational land buyers, and residential developers looking for an affordable yet promising market.
North Carolina: Growing Land Market in the South
Strong Market for Both Residential and Recreational Properties – North Carolina offers a blend of coastal beauty, rolling hills, and mountain landscapes, making it an attractive state for a variety of land buyers. The state has strong demand for both residential development and recreational properties, and its growing economy adds to its appeal.
- Residential Land: North Carolina’s population growth, particularly in cities like Raleigh, Charlotte, and Durham, has driven demand for suburban and residential land. The state’s mix of urban amenities and rural charm makes it ideal for those looking to build a home.
- Recreational Land: The state’s varied terrain—ranging from the Atlantic coastline to the Appalachian Mountains—offers numerous opportunities for outdoor activities, making it a prime location for recreational land buyers.
Booming Tech Sector and Growing Suburban Areas – North Carolina’s growing tech sector, particularly in the Research Triangle area (Raleigh-Durham), is driving demand for both residential and commercial land. As suburban areas continue to expand, so does the demand for land.
Ideal for – Residential developers, recreational buyers, and those seeking a combination of rural charm and urban access.
Michigan: Affordable Land with Diverse Uses
Affordable Land with Recreational, Agricultural, and Residential Uses – Michigan is an often-overlooked gem for land buyers. With its vast forests, lakes, and fertile soil, the state offers incredible diversity in land types and uses.
- Recreational Land: Michigan’s lakes and forests provide numerous recreational opportunities, making it a prime location for buyers interested in vacation properties, hunting, and fishing.
- Agricultural Land: The state’s agricultural sector is diverse, with crops like wheat, corn, and fruits thriving in its fertile soil.
- Residential Development: Growing cities like Detroit, Grand Rapids, and Ann Arbor are driving demand for residential development, especially in suburban areas.
Rising Tourism and Demand for Outdoor Recreational Properties – Michigan’s natural beauty, combined with its growing tourism industry, is helping drive up demand for recreational properties. Buyers interested in outdoor pursuits will find Michigan to be a great place for land investment.
Ideal for – Recreational buyers, agricultural investors, and those looking for affordable land with growth potential.
Nevada: A Desert Oasis for Off-Grid Living
Low Taxes, Affordable Land, and Opportunities for Off-Grid Living – Nevada is a haven for those seeking remote land and off-grid living options. The state’s wide-open spaces, low taxes, and affordable land prices make it a top destination for long-term investors and self-sufficiency enthusiasts.
- Off-Grid Living: Nevada’s desert environment offers the perfect conditions for off-grid living. The abundance of sunshine makes solar energy a viable option, and the remote locations offer peace and seclusion.
- Affordable Land: Land in Nevada remains relatively affordable, especially in more remote regions like the northern and southern parts of the state.
Ideal for Long-Term Investment in Remote Land Parcels – Nevada’s low taxes and open land policies make it ideal for investors looking for low-cost land with the potential for future appreciation.
Ideal for – Off-grid living enthusiasts, investors seeking low-cost land with high potential for future growth, and those looking for desert properties.
Section 4: How to Research the Best Areas in These States
When it comes to buying land, successful investors do their homework before signing any contracts. Researching the best areas within a state is crucial for making an informed investment decision.
Factors like land prices, zoning regulations, infrastructure, and long-term growth potential vary widely across regions, so conducting thorough research is essential. Fortunately, there are several tools and strategies that land buyers can use to uncover valuable opportunities and get ahead of the market.
In this section, we’ll explore some of the best ways to research the top areas within these states, including using online platforms, county resources, and networking strategies. By combining these methods, you’ll have a clearer picture of which areas offer the best potential for investment.
Online Platforms & Resources
One of the most effective ways to start your research is by leveraging online platforms that provide access to land listings, sales data, and market trends. Here are some of the most popular and useful tools to help you begin your search:
Zillow – While primarily known for residential properties, Zillow also lists vacant land for sale across the country. The platform allows you to filter search results based on price, size, location, and other parameters.
Zillow can be especially useful for comparing property prices in different regions and identifying trends in specific states or counties. Additionally, the website shows past sales data, giving you insights into price fluctuations over time.
LandWatch – LandWatch is a specialized website for buying and selling land. It offers a wide range of filters, including land use, acreage size, and price, allowing you to narrow down your search to exactly what you’re looking for.
Land And Farm – Land And Farm is another excellent resource for land buyers, particularly those interested in agricultural properties. This platform offers detailed listings for rural land, farms, ranches, and timberland, often providing information on soil quality, land use potential, and available utilities.
If you’re specifically looking for agricultural land or rural retreat properties to invest in, Land And Farm can be a valuable resource.
Realtor.com – Realtor.com is not just for homes—it also includes listings for vacant land across the U.S. It’s a good option for those wanting to compare land listings to residential properties in the same area.
Realtor.com offers extensive search features and provides historical sales data, so you can track how land prices in specific regions are moving.
Search Engines & Area Growth Trends – Aside from dedicated land platforms, search engines can also provide valuable insights into area growth trends.
By searching for terms like “population growth in [state or county]” or “land prices in [region],” you can find reports, news articles, and forums discussing real estate trends and economic development in various areas.
This can be particularly helpful for identifying up-and-coming areas where land prices may still be affordable but are poised for future appreciation.
Many real estate investment groups and blogs track regional growth and offer updated insights on where demand for land is rising. Google Alerts can also be set up to send you notifications about specific regions, helping you stay on top of news regarding land prices and development.
County Tax Assessor’s Office
The county tax assessor’s office is one of the best places to gain in-depth information about land in a particular region. County records can help you evaluate the land’s history, ownership, and current market value. Here’s what you can find:
Property Tax Data – Most county tax assessor’s offices have online databases where you can search for property information by parcel number, address, or owner name.
You’ll be able to view the property’s assessed value, which can give you a rough idea of its market value. You can also see how much the owner is paying in property taxes, which might indicate the level of maintenance required for the land.
Historical Sales Data – Some counties make historical sales data available, which can help you track the price trends of specific properties or regions over time. This is useful for identifying areas where land prices are appreciating and where you might find a good deal.
Land Use and Zoning Information – The tax assessor’s office can provide information about the land’s zoning designation, which will help you understand how the land can be used.
Zoning laws vary by county and state, and they can have a significant impact on the types of projects you can develop. For example, agricultural land might be subject to different zoning laws than residential or commercial land, so understanding these regulations is crucial before you invest.
Finding Discounted or Off-Market Properties – Many counties offer a public auction of delinquent properties, including land that has not been paid for in taxes. These tax lien or tax deed sales can be an excellent opportunity to purchase land at a discount.
Networking and Word of Mouth
When it comes to real estate, sometimes the best opportunities aren’t listed online—they’re shared through networking. Networking can help you find areas to invest in, find off-market properties, gain insights into specific areas, and build relationships with other investors who have valuable local knowledge.
Here are a few networking strategies you can use:
Local Real Estate Investment Groups (REIAs) – Real Estate Investment Associations (REIAs) are excellent places to network with other investors, realtors, and professionals in the land-buying industry. These groups typically meet regularly to discuss market trends, share investment opportunities, and learn from guest speakers.
Local REIAs often have members who are aware of land deals before they hit the market or who are looking to sell land themselves.
Search for REIAs in your target state or region and attend their meetings to meet people who can offer valuable insights. Joining these groups can also help you learn about local zoning laws, land-use regulations, and financing options that are specific to that area.
Online Groups and Forums – In addition to local REIAs, there are numerous online communities where land buyers and real estate investors discuss opportunities, share advice, and post available properties. Groups like The Land Method Facebook group and BiggerPockets are excellent platforms where you can engage with other land buyers and sellers.
Online forums can help you stay updated on trends, find potential sellers, and ask questions about the areas you’re interested in. Networking with other investors online can also introduce you to wholesalers and land brokers who might have exclusive access to off-market properties.
Researching the best areas to buy land in a state takes time and effort, but it’s a crucial step toward making a successful investment. Utilizing online platforms, checking county tax assessor’s records, and networking with other investors are all effective strategies for gathering the information you need. By taking advantage of these resources, you can discover hidden gems in up-and-coming areas, uncover off-market properties, and make informed decisions that maximize the potential of your land investment.
By staying proactive, tapping into local knowledge, and leveraging both online and offline tools, you can ensure that your land purchase will be a smart and profitable investment in the long run.
Section 5: Legal Considerations When Buying Land
Purchasing land is not just a financial decision—it is also a legal one. There are numerous legal aspects that need to be carefully examined before committing to a land purchase. Understanding land title and ownership, zoning laws, easements, environmental considerations, and property taxes can help you avoid costly mistakes and ensure your investment is protected in the long term. In this section, we will explore the key legal considerations you must take into account when buying land.
Land Title and Ownership
Verifying Clear Title – Before purchasing land, it’s crucial to verify that the title is clear, meaning that the land is free from any legal disputes, debts, or claims from previous owners. A clear title is essential because it assures the buyer that they are the rightful owner of the land and that no third party can come forward and assert ownership.
To verify the title, a title search is usually conducted. This involves reviewing the public records to determine if there are any liens, encumbrances, or unresolved legal issues tied to the property.
If there are unresolved issues, you may be forced to deal with them before moving forward with the purchase. In some cases, sellers may offer to clear up these issues before the sale, but it’s important to verify this yourself.
Title Insurance – Title insurance is a form of protection that ensures your ownership of the land is legally sound. Even after a thorough title search, there could be undiscovered issues (such as unrecorded liens, fraud, or missing heirs) that affect your ownership rights.
Title insurance protects the buyer against financial loss due to any legal disputes or title defects that arise after the purchase.
While title insurance is typically not required by law, most lenders will require it when financing land. Even if you’re purchasing land without financing, if you are holding it for any lengthy period, it’s strongly recommended to get title insurance for peace of mind. It’s a one-time premium, and the protection lasts as long as you own the land.
Zoning Laws & Land Use
State-by-State Variation in Zoning Laws – Zoning laws are regulations that dictate how a piece of land can be used. These laws can vary significantly from state to state, and even within counties or municipalities within the same state. Zoning laws are important because they can restrict the ways in which you can use your land, so it’s crucial to understand these laws before purchasing.
Some areas may have zoning laws that restrict the land to residential or commercial use only, while others may allow a variety of uses, including agricultural, recreational, or industrial. Additionally, zoning laws can change over time, so what might be permissible today could become restricted in the future.
If you plan to invest in in land used for a specific purpose—whether that’s building a home, starting a business, or farming—be sure to verify the zoning regulations for that area.
A piece of land that seems like a perfect fit could have restrictive zoning that prevents using it as intended. Zoning laws can usually be found through the local county or city planning department.
Types of Zoning and Land Use Restrictions – There are several common types of zoning classifications you may encounter when researching land:
- Residential Zoning: This type of zoning restricts land to residential use, such as building single-family homes, duplexes, or small apartment buildings. Some residential zones may have additional restrictions, such as a minimum square footage or specific architectural guidelines.
- Commercial Zoning: Land that is zoned for commercial use can be developed into retail stores, offices, other businesses, or multi-family. However, commercial zones often have additional requirements, such as parking availability or signage rules.
- Agricultural Zoning: If the plan is to farm or ranch, agricultural zoning is key. Agricultural zones generally allow for the cultivation of crops or raising livestock, but they may have rules around pesticide use, land clearing, or building structures.
- Industrial Zoning: This type of zoning applies to land meant for manufacturing or industrial use, including warehouses, factories, and power plants. Industrial zones tend to have stricter environmental and safety regulations.
- Recreational Zoning: Some land is zoned for recreational purposes, such as parks, sports fields, or hunting grounds. If you’re buying land for recreational use, understanding what’s permissible is important.
Land Use Variances – In some cases, a landowner can apply for a zoning variance, which is an exception to the rules that allows the land to be used in a way that isn’t typically allowed under current zoning regulations.
This can be an option if you are interested in a property but need to make a change to its zoning designation. However, variances are not guaranteed and are subject to local government approval.
Easements & Right-of-Way
What is an Easement? – An easement is a legal right that allows someone else to use part of your property for a specific purpose. Easements are often created to provide access to landlocked properties or to allow utilities to cross a property.
For example, if your land is landlocked (i.e., it doesn’t have direct access to a public road), an easement could be granted to provide access through a neighboring property.
There are two main types of easements to be aware of:
- Appurtenant Easements: These are attached to the land itself and benefit the property, not the owner. For example, if your property has an easement allowing access to a neighboring property, the easement would stay with the land even if it changes ownership.
- In Gross Easements: These are personal and benefit a person or business, rather than the land. For instance, a utility company might have an easement to run power lines across your property, but it doesn’t affect future owners of the land.
How to Deal with Easements – When purchasing land, it’s important to identify any existing easements, as they can affect your use of the property. For example, if the land has a shared driveway or if a neighbor has the right to access your property for a specific purpose, you’ll need to account for that in your plans.
A title search should uncover any easements tied to the land, and you should review these details carefully.
If there is a landlocked property with no access to a public road, ensure that an easement has been established to allow for legal access. Without this, you could find yourself unable to reach or develop the land, which can significantly impact your investment.
Environmental Considerations
Environmental Impact Assessments – Before purchasing land, particularly for agricultural or development purposes, it’s essential to understand any environmental factors that may impact how you can use the land. In some areas, you may be required to conduct an environmental impact assessment (EIA) to evaluate potential damage to the land or local ecosystem caused by construction, farming, or other activities.
For instance, wetlands or protected habitats may restrict the development of certain areas. If you plan to build, farm, or otherwise alter the land, it’s essential to ensure that your planned use complies with any environmental protections in place.
Agricultural, Recreational, and Off-Grid Land Considerations – For agricultural land, environmental considerations may include soil health, water rights, and pesticide use.
For recreational land, concerns could involve the preservation of wildlife or access to water sources for fishing or boating. Off-grid properties may present unique challenges regarding waste disposal, water sourcing, and energy use, particularly in more remote areas.
In all cases, landowners need to research and understand any local, state, or federal regulations that govern land use and environmental protections.
Property Taxes & Fees
How Property Taxes Vary by State – Property taxes can vary dramatically depending on the state, county, and even municipality in which the land is located. Some states, such as Texas and Wyoming, have relatively low property taxes, while states like New Jersey and Illinois have higher rates.
In addition to understanding the tax rate itself, consider how property taxes could increase over time, especially if land values rise. You’ll also want to know if there are any special assessments, such as fees for public improvements or local services, that could affect your land’s tax burden.
Additional Fees – In addition to annual property taxes, there may be other fees associated with owning land. These can include:
- HOA Fees: If your property is part of a homeowners association (HOA), there may be fees for maintenance and enforcement of community rules.
- Maintenance Costs: Some landowners choose to pay for land maintenance, such as mowing or clearing. This may be required for lots in developed areas or HOAs.
- Development Fees: If you plan to build on the land, there may be fees for permits, utilities, and inspections.
When considering land ownership, it’s important to factor in these additional costs and budget accordingly.
Conclusion – Purchasing land involves a range of legal considerations that go beyond simply finding the right property. From verifying land title and understanding zoning laws to dealing with easements and environmental impacts, it’s essential to do thorough research to protect your investment.
By being aware of these legal aspects and taking the necessary precautions—such as obtaining title insurance, understanding local zoning regulations, and identifying any easements—you can avoid legal pitfalls and ensure that your land purchase is a sound, secure investment.
Section 6: Financing Options for Buying Land
Buying land is often viewed as a lucrative investment, but one of the biggest challenges for land buyers is securing financing. Unlike purchasing a home, which typically has a wealth of financing options, land acquisition can be more complicated.
Lenders may be hesitant to offer loans for vacant land due to its perceived risk, lack of immediate return on investment, or difficulty in appraising the property. However, that doesn’t mean financing land is impossible.
In this section, we’ll explore the various financing options available to land buyers, including traditional loans, owner financing, land contracts, tax lien sales, and foreclosure auctions. As a land investor, you will most likely not use these, but your buyers will!
Traditional Loans
Why It’s Harder to Get Financing for Land Compared to Homes – In most cases, financing land is more challenging than financing a home because land is not lived in and does not generate income, and its value can fluctuate significantly depending on its use and location.
Lenders generally prefer properties that are already developed or can be quickly developed, making them more easily appraisable and easier to sell in case of foreclosure. Vacant land, on the other hand, lacks the same tangible value that a home or commercial property provides, making it a riskier investment for lenders.
When it comes to land, banks and credit unions tend to have stricter lending criteria. Many will only lend if the land is located in a well-developed, accessible area with a strong market for resale.
If the land is rural, undeveloped, or has limited access to utilities, securing traditional financing can be more difficult. Even when it’s possible to obtain a loan for land, the terms will likely be less favorable than those for a home loan.
Bank Loans and Credit Unions – Some larger banks and credit unions offer land loans, but they typically have specific requirements. For example, they may require that the land is located within a certain distance of an urban area, has access to utilities, or is already zoned for development.
Because of the higher risk involved, the down payment is often higher, ranging from 20% to 50% of the purchase price, depending on the property’s location and characteristics.
The terms of land loans are usually shorter than traditional home loans, often ranging from 5 to 20 years. Interest rates for land loans are also higher—often 1% to 2% above those of conventional mortgage rates—due to the higher risk involved.
Land Loan Specialists – There are also specialized lenders, often called land loan specialists, that focus solely on offering loans for land purchases. These lenders may be more flexible when it comes to rural properties, and they are accustomed to working with buyers who are looking for land to develop or use for non-residential purposes.
However, just like banks, they may require larger down payments and charge higher interest rates. Some land loan specialists may even offer loans for recreational or off-grid land, which are typically harder to finance through traditional channels.
While financing through these specialists is an option, it’s important to carefully compare rates and terms to ensure that you’re getting the best deal.
Owner Financing
What Is Owner Financing and How It Works? – Owner financing, also known as seller financing, occurs when the seller of the land agrees to finance the purchase directly for the buyer, bypassing traditional lending institutions. Because of the difficulty with obtaining a mortgage from a bank or credit union, the buyer agrees to make monthly payments to the seller until the full purchase price is paid off and is a strategy that we use to sell many properties.
The terms of owner financing are highly negotiable, and they can vary widely from seller to seller. The buyer and seller typically agree on the interest rate, repayment period, and any other conditions of the sale, such as the down payment. These terms are outlined in the legal document used, which binds both parties to the agreement.
Benefits of Owner Financing to the Buyer
- No Need for Traditional Lenders: One of the primary benefits of owner financing is that it eliminates the need for banks or credit unions, which can make the process quicker and more straightforward.
- More Flexible Terms: Because owner financing is a private agreement between the buyer and seller, it allows for more flexibility in the terms of the loan. Buyers may be able to negotiate lower down payments, longer repayment periods, or lower interest rates compared to traditional lenders.
- Easier Approval: If you have poor credit or a limited credit history, owner financing may be an easier option to qualify for, as the seller is more concerned with the buyer’s ability to make payments than with their credit score.
- Potential for Lower Fees: In some cases, owner financing can save buyers money by avoiding bank fees, application fees, and other costs associated with traditional financing.
Benefits of Owner Financing to the Seller
- Higher Interest Rates: While the buyer will have more flexibility with the terms, the seller may charge a higher interest rate than a bank would, which could make the overall cost of the land higher.
- Balloon Payments: Some owner financing agreements include a balloon payment, where the buyer must pay off the remaining balance in a lump sum after a few years. This could result in significant financial strain if the buyer isn’t prepared.
- Lack of Legal Protections: The seller is often not required to document the terms of the agreement, thus if the buyer fails to follow through on the contract, they often have limited legal recourse, if any. This is an advantage of the one selling the property.
- Risk of Default: If the buyer defaults on the loan, the seller may not be required to follow through with foreclosure proceedings. This lack of formal legal recourse can sometimes make the process of recovering the land much simplet.
Land Contracts & Seller Financing
What Are Land Contracts? – A land contract, also known as a contract for deed, is another form of owner financing in which the buyer makes payments to the seller over time. However, with a land contract, the seller retains legal ownership of the property until the buyer has made all the agreed-upon payments.
The buyer takes possession of the property and can use it, but the seller technically holds the title.
This arrangement allows buyers who might not qualify for a traditional mortgage to acquire land, while sellers can sometimes sell the property more quickly or offer more favorable terms to buyers. Land contracts are most commonly used for properties that are more difficult to finance through traditional means, such as rural or undeveloped land.
Seller Advantages to Land Contract Terms
- Interest Rate: Just as with owner financing, land contracts can come with higher interest rates than traditional loans.
- Default Conditions: The land contract should clearly outline what happens if the buyer defaults on the loan. In many cases, the buyer may lose all payments made up to that point without the ability to reclaim the land.
- Property Taxes and Insurance: The seller can make the buyer responsible for paying property taxes and maintaining insurance on the land. These obligations should be specified in the contract.
- Length of Contract: The contract should clearly specify the duration of the repayment period, and clarify whether there’s a balloon payment due at the end of the term.
Given that the seller holds the title until the contract is fully paid, both parties must clearly understand their rights and responsibilities. It’s always a good idea to have an attorney review a land contract to ensure that it’s fair and legally binding.
Tax Liens & Foreclosure Auctions
How to Purchase Land via Tax Liens or Foreclosure Auctions – Purchasing land through tax liens or foreclosure auctions is a very popular method used to try to secure land at a significantly reduced price. This process typically occurs when property owners fail to pay their property taxes, and the local government places a lien on the property to recover the unpaid taxes.
In tax lien auctions, buyers purchase the tax lien, and the property owner must repay the outstanding taxes plus interest. If the owner fails to do so within a specified period, the buyer may be able to take ownership of the property.
Foreclosure auctions, on the other hand, occur when the government or a lender auctions off the property due to unpaid taxes or mortgage payments. If you win the auction, you take ownership of the land. These auctions can be a way to acquire land for a fraction of its market value, but they come with inherent risks.
Risks and Rewards of Buying Land via Auctions
- Rewards: The biggest draw to purchasing land at tax lien or foreclosure auctions is the potential to acquire land at a steep discount. Depending on the auction and property, you could purchase land for much less than its market value.
- Risks: These properties are often sold “as-is,” meaning you may be unaware of hidden issues like environmental contamination, zoning problems, or legal disputes. Additionally, buyers may be required to settle outstanding taxes, liens, or legal judgments that were associated with the property. There is also stiff competition from others also trying to invest using this method.
Before bidding on land at an auction, it’s important to thoroughly research the property and any associated legal or financial obligations.
Securing financing for land is often more complex than financing a home, but there are numerous options available to buyers. From traditional bank loans to more flexible solutions like owner financing and land contracts, the right financing method depends on your financial situation and the type of land you’re looking to purchase. Because of this, the options that open to the seller/investor can produce excellent returns!
If you’re willing to take on a little more risk and do your due diligence, purchasing land via tax lien or foreclosure auctions can be an excellent way to acquire land at a discount. Regardless of the route you choose, understanding your financing options, particularly when selling, is key to making a successful land investment.
Section 7: How to Evaluate Land for Investment
Buying land as an investment is not as straightforward as simply selecting a plot and making an offer. Successful land investment requires careful evaluation of the land’s physical characteristics, its potential for appreciation, and its future development prospects.
This section outlines key considerations for evaluating land before purchasing, including how to inspect the land, assess its resale potential, and determine its long-term development possibilities.
Land Inspection Checklist
Before making any decisions about purchasing land, a thorough inspection of the property is critical. This checklist will help guide your evaluation of the land’s physical characteristics, infrastructure, and overall viability for your intended use—whether for agriculture, residential development, recreation, or other purposes.
Soil Quality – The quality of the soil is one of the most important factors to consider if there is no public sewer available. It is essential, if the property is to be used for building or development purposes, to ensure that it can accommodate a septic system. This is done via a soil test which is conducted by a Licensed Soil Scientist (LSS), which can be hired independently or through the county health department.
Water Access and Rights – For agricultural use or off-grid living, water access is a critical consideration. Without adequate water sources, land may be unsuitable for crops, livestock, or other uses. There are two key aspects of water access:
- Surface Water: Check whether the property has natural water features such as ponds, streams, or rivers. This is especially important for farming, fishing, or recreational purposes.
- Water Rights: In many areas, water rights are separate from land ownership. Verify whether the land comes with water rights, and if so, the specifics of those rights (e.g., how much water can be used, restrictions, etc.).
For residential property, it is important to understand if the property is connected (or can be connected) to a public water supply or if it will need a well installed.
Boundary Lines and Land Survey – It’s essential to confirm the boundaries of the property before purchasing to avoid any disputes with neighboring landowners. Many properties will have markers or signs indicating the property’s perimeter, but these can sometimes be unclear or out of date.
If needed, a licensed land surveyor can conduct a formal survey to precisely determine the boundaries. This step is especially important if the property is being purchased for development, as encroaching on neighboring land could lead to legal issues.
Access and Easements – Verify that the land is easily accessible by public roads or, if necessary, through legal easements. For landlocked properties, you will need to confirm whether there is an easement (legal access) through a neighboring property. If the land lacks easy access, it can be difficult to develop or use, and the property’s value could be significantly reduced.
Topography and Terrain – Assessing the land’s topography is critical, especially if you plan to build or farm. You want to ensure that the land is suitable for your intended use, whether it’s building a house, creating a recreational space, or farming. Key considerations include:
- Slope: Steeply sloped land can be difficult and expensive to develop or farm. If you’re planning to build, flat or gently sloping land is typically the best choice.
- Elevation: In some regions, higher elevations can offer better views or cooler climates, which may be desirable for recreational properties.
- Soil erosion: Areas prone to erosion may make farming or building on the land more challenging and costly.
Local Wildlife and Vegetation – If you plan to use the land for recreational activities like hunting, fishing, or hiking, you’ll want to take stock of the local wildlife and vegetation. The types of animals and plants that inhabit the land can affect its value and usability for these purposes. For instance, properties with abundant game or unique flora might hold higher value for outdoor enthusiasts. However, if they are a protected species, it can greatly diminish any investment potential.
Resale Potential & Liquidity
One of the fundamental aspects of evaluating land for investment is considering its resale potential and liquidity. How easy will it be to sell the land in the future, and will you be able to recover your investment or make a profit?
Market Trends That Affect Liquidity – Several factors can influence the liquidity of land, including location, access, and demand for land in the area. When evaluating a property, consider the following:
- Location: Land located in rapidly growing areas, particularly near urban centers or future development zones, will typically have higher liquidity. If the area is experiencing population growth or economic development, demand for land may increase, making it easier to sell in the future.
- Access: Land with easy access to major highways, public services (e.g., water, electricity), and amenities (e.g., schools, hospitals, shopping) tends to be more attractive to buyers. Properties in remote or difficult-to-reach areas can be harder to resell unless they have very specific appeal, such as for off-grid living or recreation.
- Demand: Land in regions with strong agricultural, recreational, or residential demand will usually have a better resale potential. Research current land market trends in the area, including recent sales, price growth, and the types of buyers that are interested in land there.
Potential Buyers – You should also consider the types of buyers who might be interested in the land. Residential buyers may be more likely to purchase land in suburban or rural areas near growing cities, while agricultural land might attract farmers or investors in agricultural sectors.
Recreational land could appeal to outdoor enthusiasts, hunters, or people looking for vacation homes. Understanding your target market will give you a clearer sense of how liquid the investment is likely to be.
Property Features That Increase Resale Potential
- Infrastructure: Properties with existing infrastructure, such as roads, utilities, and outbuildings, may be easier to sell, as buyers won’t have to invest as much in development.
- Zoning and Land Use: Land that is zoned for multiple uses (residential, agricultural, recreational, commercial) offers flexibility to future buyers and may increase its resale potential.
- Appeal to Specific Buyers: For instance, properties with water features (lakes, rivers) or those in popular recreational areas (mountains, forests) may appeal to a broader range of buyers and increase the chance of a profitable resale.
Long-Term Development Potential
While you may be buying land for its current use, such as farming or recreational purposes, it’s also wise to evaluate its long-term development potential. Assessing whether the land will appreciate over time, and understanding the external factors that may influence its value, can help you determine if the land is a good investment for the future, especially if you are buying the property for land banking.
Appreciation Potential – Land generally appreciates over time, but the rate of appreciation depends on various factors. These include the location of the property, the demand for land in the area, and regional or national economic trends.
For example, land in or near an expanding city or in areas with planned infrastructure projects (e.g., new highways, industrial parks) can appreciate significantly as development progresses. However, land in more remote or less accessible areas may have limited potential for appreciation.
Future Development Projects or Infrastructure – One of the best ways to assess long-term appreciation potential is to research any upcoming development projects or infrastructure improvements planned for the area. For example, if the state or local government is planning to build new roads, bridges, or public services, the land’s value could increase dramatically over time.
Similarly, private developments such as new housing developments, commercial zones, or recreational resorts can drive demand for land in the vicinity, boosting its value.
Zoning and Local Policy Changes – Changes in local zoning laws and regulations can also have a major impact on land value. For instance, if zoning laws change to allow for higher-density residential or commercial development, the land’s value may increase due to new opportunities for development. Keep an eye on local zoning board meetings and city planning documents to stay informed about potential changes.
Environmental and Economic Factors – Long-term environmental factors—such as climate changes, water availability, and soil quality—also play a role in determining the future viability of land. Additionally, larger economic trends, such as shifts in population density, job growth, and industry development, can influence the land’s future demand.
Conclusion – Evaluating land for investment is a multifaceted process that involves inspecting the land’s physical characteristics, understanding its market and liquidity, and considering its long-term development potential. By conducting a thorough inspection, including soil quality, water access, and boundary lines, you can ensure that the land meets your immediate needs and future goals.
Additionally, by understanding the market trends, demand for land, and possible future development projects, you can assess whether the land will appreciate in value and be easy to resell. This comprehensive evaluation will help you make an informed decision about whether a piece of land is a sound investment for the long term.
Section 8: Future Trends in Land Investment
The land investment landscape is constantly evolving, influenced by shifts in economic conditions, societal behaviors, and technological advancements. Over the last few years, we’ve seen several emerging trends that are shaping the future of land investment, especially as people seek new opportunities outside traditional urban centers.
In this section, we’ll explore the impact of rural migration and remote work on land demand, why land is seen as a hedge against inflation, and the growing trend toward sustainability and green land use.
Rural Migration & Land Demand
How the COVID-19 Pandemic Influenced the Demand for Rural Land – The COVID-19 pandemic profoundly changed the way people view urban and rural living. As cities locked down, businesses closed, and daily commutes ground to a halt, many individuals and families rethought their living situations.
With remote work becoming the norm for millions of employees, the need to live near offices or in major cities decreased. As a result, there was a noticeable surge in demand for land in rural areas.
During the pandemic, many people fled crowded urban centers in search of more space, tranquility, and an opportunity to live more sustainably. The rise of remote work meant that employees no longer had to live near their offices, opening up possibilities for land investment in less densely populated, rural, and even remote areas. This shift in lifestyle and work habits contributed to a significant increase in land demand outside of major cities.
Trends in Remote Work and How They Affect Land Prices – Remote work isn’t just a temporary trend—it’s become a permanent feature of the workforce for many industries. As companies and employees continue to embrace flexible working arrangements, more individuals are choosing to live in rural areas, away from the hustle and bustle of cities.
This ongoing shift has driven up land demand in previously overlooked regions, as people seek affordable properties where they can live, work, and even recreate.
The rise of remote work is also contributing to a more sustainable lifestyle for many. People are increasingly drawn to properties that allow for off-grid living, self-sufficiency, and a closer connection to nature. For investors, this presents a unique opportunity to acquire land in emerging markets before prices rise due to increased demand. Areas that were once considered too remote or inconvenient for full-time living are now becoming desirable for those seeking a quieter, more spacious lifestyle.
Impact on Land Prices – As rural areas become more desirable due to the rise of remote work, we’re seeing a noticeable shift in land prices. Initially, remote and rural land was much more affordable than land in urban areas, but the recent surge in interest has driven up prices, especially in areas with good access to amenities and natural resources.
As demand increases, the price gap between urban and rural properties is narrowing.
In some cases, areas that were once considered marginal for development are now seeing a rise in property values, as people invest in land for both residential and recreational purposes. This trend may continue as remote work remains prevalent, further boosting demand for land outside of urban hubs.
Land as a Hedge Against Inflation
Why Investors See Land as a Stable, Long-Term Investment in Uncertain Economic Times – In periods of economic uncertainty or inflation, tangible assets like land are increasingly viewed as a safe haven for investment. Unlike stocks or bonds, which can fluctuate dramatically in response to market conditions, land generally holds its value over time.
This stability makes land an attractive investment, particularly when inflation is rising or when the financial markets are volatile.
Land offers intrinsic value that is not tied to the performance of the stock market or the global economy. It is a finite resource, and as demand for land increases due to population growth, urban expansion, and environmental factors, its value tends to appreciate over time.
As a result, many investors are turning to land as a way to protect their wealth against inflationary pressures. Even in times of economic downturn, the value of land tends to hold steady, making it a safer investment compared to more speculative assets.
Land as a Tangible Asset – Another key reason land is considered a hedge against inflation is that it is a tangible asset. Unlike stocks, which can lose value overnight due to market forces, land has a physical presence that is less susceptible to sudden fluctuations.
In fact, land can even appreciate in value when inflation causes the cost of raw materials to rise, which in turn increases the value of land as a resource.
For example, as inflation drives up construction costs, the price of raw land may increase, particularly in areas with high demand for development. Similarly, with the rise in commodity prices, agricultural land can see higher demand, as rising food prices make farming and ranching more profitable. Therefore, owning land—whether for agricultural, residential, or recreational purposes—can provide investors with a reliable source of value in an uncertain economic environment.
Diversification and Risk Mitigation – Investing in land allows investors to diversify their portfolios, reducing risk by holding a variety of asset types. As part of a broader strategy, land can balance out the volatility of stocks, bonds, or cryptocurrency investments. This diversification is particularly valuable during periods of inflation, when financial markets may be unpredictable and interest rates fluctuate.
Sustainability & Green Land Use
Growing Demand for Eco-Friendly Land and Sustainable Development – In recent years, there has been a growing focus on sustainability, both in terms of how land is used and how it’s developed. Increasing environmental awareness, climate change concerns, and changing consumer preferences are pushing the demand for eco-friendly land use.
Sustainable agriculture, renewable energy, and responsible land management practices are now more important than ever before.
As people become more conscious of their environmental impact, there is a shift toward purchasing land that allows for sustainable practices, such as organic farming, water conservation, and wildlife preservation. This trend is particularly prominent among investors who want to build long-term wealth while also contributing to environmental conservation.
Solar, Wind, and Off-Grid Living Trends Influencing Land Use – One of the most notable trends in land use is the growing interest in off-grid living. People are increasingly seeking properties that allow them to live independently of municipal utilities by harnessing renewable energy sources such as solar and wind power.
Land in remote, rural areas that offers opportunities for solar or wind energy installations is becoming highly sought after, as buyers look to reduce their reliance on traditional power grids and make their homes more sustainable.
In addition, agricultural land that can be used for growing crops, raising livestock, or implementing permaculture practices is in high demand. Investors are looking for land that can be managed with sustainability in mind, whether for organic farming, reforestation projects, or eco-tourism ventures.
Government Incentives for Green Energy Projects – Many states offer incentives for landowners who install renewable energy infrastructure, such as solar panels, wind turbines, or other green energy technologies. These incentives can make eco-friendly land more affordable and provide a return on investment over time.
As renewable energy becomes more mainstream, the demand for land that can accommodate these types of projects is expected to continue to rise, particularly in areas with abundant sunlight or wind.
Conclusion
The future of land investment is shaped by a confluence of factors, from the shift toward rural living driven by remote work and the COVID-19 pandemic, to the growing demand for land as a hedge against inflation and as part of the sustainability movement. Investors who understand these trends and are proactive in seeking opportunities can benefit from the rising demand for rural properties, eco-friendly developments, and land-based investments.
Whether you’re looking for land for recreational use, agricultural development, or sustainable living, keeping an eye on these emerging trends will be key to making informed decisions in the evolving land investment market.
As you embark on your land investment journey, it’s important to keep in mind that choosing the right location and type of land can make all the difference in the success of your investment. Throughout this guide, we’ve explored a range of factors that influence land-buying decisions, from price trends and zoning laws to infrastructure, climate considerations, and future development potential. Understanding these aspects will help you make informed, confident decisions when purchasing land in 2024 and beyond.
Recap of Key Takeaways
The best states for buying land in 2024 are those that align with your specific investment goals—whether you’re looking for agricultural land, recreational properties, residential development, or off-grid opportunities. Each state offers unique advantages that cater to different types of land buyers. Here’s a summary of the key factors that determine the best places to buy land:
- Land Prices & Affordability: States like Missouri, Georgia, and Michigan offer some of the most affordable land in the country, particularly in rural areas where prices remain lower compared to urban centers. If cost is a key factor in your decision, these states are excellent options.
- Zoning & Land Use Regulations: States with flexible zoning laws, such as Tennessee and Missouri, are ideal for buyers who want to develop their land for multiple uses, including residential, recreational, or agricultural purposes.
It’s essential to understand the zoning laws in any state you’re considering, as they can heavily influence what you can and can’t do with your land.
- Demand & Economic Potential: States like Texas and Florida continue to see strong demand due to their growing economies, business-friendly environments, and migration patterns. These states are ideal for investors looking for high-growth areas where land values are expected to appreciate.
- Resale Potential: States with strong job markets, economic growth, and population increases, such as North Carolina and Colorado, have high resale potential. If you’re looking for liquidity and the opportunity to sell or develop your land in the future, these states are prime candidates.
- Climate, Terrain, and Development Potential: The states you choose will also depend on what type of land use you prioritize. For example, Arizona and Nevada offer remote land ideal for off-grid living, while Michigan and Colorado provide land well-suited for recreational activities, such as hunting, hiking, and camping.
Final Tips for Land Buyers
Buying land is not just about picking a plot that looks appealing—it’s about ensuring that the investment makes sense for your long-term goals. As you evaluate different states and types of land, keep these final tips in mind:
- Conduct Thorough Research: Each state has unique regulations, economic conditions, and land prices. Take the time to research the specific area you’re considering, including local zoning laws, water access, soil quality, and accessibility. Online platforms like Zillow and LandWatch can provide valuable data, but local government websites and county tax assessors’ offices will offer more detailed information about zoning, taxes, and other legal considerations.
- Seek Professional Help: Purchasing land can be complex, especially if you’re unfamiliar with legal procedures, local regulations, and financing options. Working with someone with experience in land transactions along with professionals such as a land surveyor or a real estate attorney to navigate legal hurdles can save you time, money, and stress.
- Evaluate Long-Term Value: Look beyond the immediate costs and consider the long-term potential for the land. What is the projected growth of the area? Are there any upcoming infrastructure projects that could increase land value?
Assessing future trends in development, population growth, and economic expansion can help you make a smart, future-proof investment. - Understand Financing Options: Land financing is different from home mortgages, and it may require a larger down payment or higher interest rates. As a seller, be prepared to explore alternative financing methods, such as owner financing or land contracts, and determine which is the best option for your situation.
- Don’t Rush the Decision: Land buying is a major investment, and it’s important not to rush into it. Take the time to explore different regions, weigh the pros and cons of each, and make sure the land fits your personal or investment goals.
Whether you’re buying land that will be used for personal use, farming, development, or long-term appreciation, making an informed, calculated decision will set you up for success.
Now that you have a comprehensive understanding of the factors that influence land investment, it’s time to start exploring the best states to buy land in 2025. Begin by identifying your investment priorities—whether it’s affordability, potential for growth, or suitability for your intended land use.
Use the tips and insights provided in this guide to research areas that align with your goals, and don’t hesitate to reach out to professionals who can help you navigate the complexities of purchasing land.
But most importantly, join the Land Method Facebook Group, where you can connect with other like-minded investors, ask questions, and get expert advice from experienced land investors! It’s an invaluable resource for anyone looking to dive deeper into the world of land investment and ensure that they’re making the best choices.
Whether you have been investing in real estate for a long time, or this is the first time you have considered it, start your journey today, and make your next land investment a success with the support and insights of the Land Method community!