Buying land offers investors the unique opportunity to reap the benefits of high-profit gain and asset stability. Unfortunately, the cost of land may sometimes be too steep for investors on a budget. This article offers investors a starting point for buying land at cheaper prices.
Why Buy Land?
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Security and tangibility: Land is a stable and physical asset—it doesn’t depreciate and is significantly less susceptible to market fluctuations.
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Appreciation potential: As supply decreases while demand only rises, the value of land will always increase and provide a high profit in the long term.
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Income generation: By leasing out land for agricultural, recreational, commercial, or other purposes, investors can easily generate passive income.
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Flexibility for individual needs: Buying land offers investors the opportunity to use it for their purposes, whether for cultivating farmland or building a customizable property.
Even with all the benefits of buying land, it is important to research, strategize, and know what you will use land for, in order to make the most of your purchase.
Affordable States to Buy Land
Here are the 7 most affordable states to buy land in the U.S. in 2025:
1. Arizona
Median price per acre: $4,164
With some of the most affordable property taxes in the country and a beautiful landscape of deserts and the Grand Canyon, Arizona is an attractive opportunity for land investment. You can find over 150 plots of land for sale for $5,000 or less. The most affordable counties to buy land include Mohave, Navajo, and Cochise counties.
2. New Mexico
Median price per acre: $6,000
New Mexico’s diverse array of mesas, forests, and mountains, contributing to a rich cultural heritage, offer a thriving paradise for nature lovers. Around 700 plots of land are available for $6,000 or less, and you can find the most affordable land in the Luna, Valencia, and Torrance counties.
3. Mississippi
Median price per acre: $10,835
Abundant with fertile soil, especially near the Mississippi Delta, Mississippi would be a great investment for anyone but especially those interested in agriculture. Over 400 land plots in the state are on sale for $10,000 or less. Holmes, Coahoma, Sharkey, Issaquena counties are the cheapest counties to buy land.
Thomas Morse, Unsplash
4. Colorado
Median price per acre: $11,561
Colorado boasts some of the lowest property taxes in the U.S. It is home to the Rocky Mountains, plains, and canyons, offering exciting adventures for outdoor enthusiasts. For $12,000 or less, you can find over 670 plots of land for sale. The most affordable land can be found in Costilla, Huerfano, Las Animas, and Saguache counties.
5. Arkansas
Median price per acre: $11,596
You can find plentiful land suitable for recreation, farming, or off-grid living in Arkansas, “the Natural State” filled with mountains, forests, and rivers. A substantial amount of land—2,000 plots—is available for $12,000 or less. Izord, Sharp, Fulton, and Stone counties are home to the cheapest land.
6. New York State
Median price per acre: $12,027
If you look beyond the glowing lights of New York City, you’ll discover gorgeous mountains and ample rural land in upstate New York. Over 100 plots of land are on sale for $12,000 or less. The upstate region is where you can buy the most affordable land, particularly in St. Lawrence, Lewis, Herkimer, and Otsego counties.
7. Missouri
Median price per acre: $14,078
Rounding out this list is the southern state of Missouri, which offers a wide range of rolling plains, mountains, and forests. You can find over 1,000 plots of land available for $15,000 or less, with the cheapest land concentrated in Shannon, Texas, Reynolds, and Oregon counties.
Free Land in the U.S.
There are 3 cities where you can buy land for free, with certain conditions:
1. New Richland, Minnesota
Amount of free land: quarter acre
90 minutes away from the Twin Cities is New Richland, home to 1,200 people. To obtain a free quarter acre of land, you must: 1) provide a pre-approval letter displaying approval for a construction loan for the home, 2) begin construction within 1 year, once you have applied and been approved for the lot, and 3) finish building the home within 1 year of starting construction.
For more information, visit the City of New Richland’s page.
2. Elwood, Nebraska
Amount of free land: 0.3 acres
Elwood is a small town of 685 people, 34 miles away from Omaha and 21 miles from Lincoln. Lots are free for U.S. citizens or legal residents, contingent on a $500 deposit that is refundable upon home completion. You must pay a $50 building permit fee when applying and submit a floor plan for approval before paying the deposit. Construction must begin within 1 year, and the home must be occupied within 2 years of purchase.
A down payment assistance program is available from the Village of Elwood upon completion, who will provide 10% of the construction cost for up to $25,000.
3. Mankato, Kansas
Located in the north of Kansas, Mankato has a homey population of 900 people. To acquire a free lot of land, you must 1) submit an application with home plans, 2) provide pre-approval from your lender and attend an interview with the city council, 3) begin construction within 6 months, and 4) build a single-family home that complies with Uniform Building Codes and National Electric Codes, within 2 years.
Find more details from the Mankato Chamber of Commerce.
For more insights on real estate investment, tune in to my podcast, Black Real Estate Dialogue, available on YouTube, Apple Podcasts, and Spotify.
Freebies
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Free Out of State Investing Training: https://www.outofstatemoney.com/
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8 Steps to Buying Out of State: https://www.outofstatemoney.com/long-distance-investing-guide
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The Remote Landlord’s Toolkit: https://www.outofstatemoney.com/remotelandlordtoolkit
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The Creative Financing Playbook: https://www.outofstatemoney.com/creativefinancingplaybook