Whether you are purchasing, selling, or merely interested in property sizes, knowing how much land you are working with is essential. In this article, we discuss the basic parameters of land measurement and evaluation to answer this question as accurately and reliably as possible.
Table of Content
- How much does one acre mean?
- How many houses can fit on five acres?
- How many acres is one mile by one mile?
How much is an acre of land worth?
- States with the lowest land value
- States with the highest land value
- Elements that Affect Land Value
The price of an acre of residential land
- States with the most affordable residential land (as-is)
- States with the most expensive residential land (as-is)
- Is land worth more than the house on the land?
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We will begin by examining the essential measurement size of land, which is an acre, and how many acres in a football field. You will determine how many houses a larger piece of property can accommodate and consider even larger dimensions by the square mile.
We will also go over the economics of an acre by looking at how much an acre is worth in each state, with the most and least expensive land areas in each region of the U.S. We will break it down based on factors that go into determining land value like location, accessibility, and zoning laws have on whether or not someone can buy cheap land for sale during today's market.
Furthermore, we will provide a breakdown of the charges linked to houses and farmland to give you a clear idea of the amount that it could cost. I created this guide to teach you everything you need to know about land measurement and valuation so that whenever you venture into real estate, you will be able to make an informed decision.
How big is an acre?
An acre, a standard unit of area measurement, is widely used in the United States, the U.K., and other regions to measure land. It's also a common unit for measuring smaller areas globally. For a better understanding, an acre spans approximately 43,560 square feet. This size is slightly less than that of an American football field, without considering the end zones. Essentially, an acre is comparable to a football field, with a variance of around 75%. This comparison provides a practical way to visualize the size of an acre, which can be useful when making land purchase decisions or planning developments.
How Much Does One Acre Mean?
An acre can be quite a bit, or it can be minor at all. It all depends on where the acre is located and how it is used. An acre in an urban area may be large enough to support a couple of houses with my neighbors for 10,000 square feet each. It could be part of a smaller agriculture plot or one person's huge residential estate, etc. In other words, a typical single-family suburban home might occupy a quarter-acre lot so that an acre could take four of such homes. Its uniqueness is derived from its flexibility in the fact that an acre can be used for residential, commercial, and farming purposes.
How Many Acres Fit into a Square Mile?
A square mile, a more extensive unit of area, contains 640 acres. Understanding this conversion is crucial when dealing with larger land areas, especially in rural and agricultural contexts. For instance, when describing the size of large farms or ranches, it's more practical to use square miles as it provides a clearer picture of the land's extent. In some literature, watershed sizes are often expressed in hectares, which is another standard measure for mapping and land use planning at a larger scale.
How Many Homes Can You Fit on 5 Acres?
Building the Number of Houses on Five Acres In suburbia, where we have 1/4 acre lots, you could put about twenty houses on five acres. Note: This is for a standard lot, which does not include the amount of land required for roads or utility service. However, in districts with looser zoning or bigger lot sizes, homes would take up much less of an acre, reducing the number of homes per acre. This will help developers and future buyers orient their plans for residential communities around these parameters.
How much is an acre of land worth?
How much an acre is worth is an extremely complex question, as numerous factors go into determining its value. Land value is far from a simple concept, and this means that while land prices are much higher in some states, they are very low in others, as discussed above. For instance, an acre in a vibrant city area with substantial infrastructure and facilities will be considerably more valuable than an acre in a remote, rural setting with limited access and development. According to economist William Larson in a 2015 study, while the average land value in the United States is roughly $12,000 per acre, this number hides substantial regional and land-use differences.
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One central area for improvement in determining land value is that it is often sold with buildings and other improvements, complicating the separation of land value from that of the structures. This is particularly true in urban areas where land is highly developed. Larson's report highlights that while farmland values are regularly tracked, urban land value data is more complex to isolate due to this bundling issue. This makes it challenging to discern the intrinsic value of the land without considering the built environment.
States with the Lowest Land Value
Land values are typically lowest in states with abundant undeveloped land and lower economic activity. States such as Arizona, New Mexico, and Mississippi frequently have the lowest land values. For example, in Arizona, the average price per acre is approximately $4,200. These states provide more affordable land primarily due to lower demand, less infrastructure, and fewer nearby amenities compared to more urbanized areas. Here is a comparison of some states with the lowest land values:
States with the highest land value
Comparatively, states with low land values generally feature rural populations, limited local economic activity, and scattered developed real estate due to high levels of available land.
To give you an idea, in Rhode Island, the going price per acre often lands north of 350,400 dollars. Increased rates in such regions are triggered by the presence of high levels of demand emanating from the high-end residential market, good locality, and well-developed infrastructure. Following is the comparison of the Top States having the highest land values:
Elements that Affect Land Value
Various elements affect the price of an acre, making it a metric that fluctuates broadly. Some key factors include:
Location: Land in urban centers is typically more expensive than land in rural or suburban areas due to higher demand and access to better facilities. Land values are routinely higher in coastal areas, particularly on both the East and West coasts.
Infrastructure: The existence of paved roads, sewer connections, and municipal utilities significantly affects land value, which is largely determined by the degree to which it is accessible and connected.
Potential Use: The value of the land may be impacted by its permitted use, such as residential or commercial zoning, agriculture, etc. For example, land appropriate for high-density residential development might have a higher worth than land restricted to agricultural use.
Economic Activity: Where economic activity and job opportunities exist, you will see higher land values. The local economy drives demand for land.
Beautiful Areas or Unique Landforms: Land that has a beautiful view or one nice landform, such as being on the water, can sell for more. A site with a good view is worth even more, even in the same locality.
It is important that an individual take these factors into account, as they help clarify why land values are so wide-ranging and why it is necessary to consider every last one of them if you want a judge to assess the value of a piece of land meaningfully.
The price of an acre of residential land
The importance of residential land value is recognized by investors, developers, and homeowners alike. How much it costs is also directly linked to how much the land costs because even before you attempt to build or purchase a house on your property, you have first to shell out substantial amounts of money to buy land surrounding it.
Land Price Differences by State, Metro Area Information from the FHFA study "The Price of Residential Land for Counties, ZIP Codes, and Census Tracts in the United States" reveals that in larger metro areas, land prices have risen faster than house prices; in smaller metros, the opposite is true.
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States with the most affordable residential land (as-is)
Land prices across the U.S. vary widely, with certain states offering cheap land for sale. Due to reasons like no zoning restrictions, significant areas of underdeveloped land, and lower population densities, Arkansas, Mississippi, and West Virginia are on the lower part of the list as some of the states that cost less. The reason for lower land prices in these states is primarily due to economic conditions and land availability, resulting in huge farmsteads with machine sheds, fencing, or private golf courses.
These prices are for the land in its raw "as-is" condition so that additional investment will be needed for site development work like clearing, grading, and utilities. These states are good markets for people thinking about building their own homes from the ground up for relatively cheap.
States with the most expensive residential land (as-is)
At the opposite end of the spectrum, some U.S. states are home to much higher land prices, mainly due to high demand, lack of supply, and simply more coveted addresses. Flying in California and New Jersey comes at a premium - which is no surprise, as both places feature some of the country's largest urban centers, plus water on both sides.
These high prices are usually seen in urban and suburban areas where land is limited, and the demand for housing is high. Although it is generally more expensive, these tend to see a better return on investment because they are considered prime locations with substantial real estate markets.
Contrast Land Value with Building Value
In urban and suburban settings, the land can easily be worth more than the buildings on it. This is particularly the case in areas of high demand and very scarce land. The study conducted by FHFA further shows that land costs can rise to 62% of the property value in states such as Hawaii, which makes land a scarce commodity and an object of high demand.
This is in stark contrast to other states, such as North Dakota, where land was valued at a mere 18% of the value of the property, and in many cases, it was the house that was worth more than the land on which it sat. This difference highlights how essential location is in determining real estate valuation.
In a scenario where land in heavily populated urban areas with limited space becomes more valuable than the structures on it, there is less room to build new high-rises. Investors and homeowners need to know this relationship so that they can make proficient property investment and development decisions.
Latest Market Insights
For up-to-date insights, we turn to analysis and data provided by reputable real estate platforms. Despite the trends identified in the FHFA study, land prices continue to be some of the most expensive in many metropolitan areas nationwide, with some of the highest land price shares in California and New Jersey.
In contrast, states with lots of rural land and relatively weak economic development pressures continue to deliver more affordable alternatives. Understanding these patterns will help potential buyers and investors make the best use of the complexities found within the real estate market in order to make fiscally responsible decisions that increase their financial budgeting outcomes and optimize their hold intent.
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