If you are buying land as an investment, the states that perform best over time share a few traits: affordable entry prices, steady demand, population growth, and land that can actually be used. ROI in land is not about hype. It comes from buying in places where people want to live, build, farm, or retire, and where holding costs do not crush you while you wait.

States like Texas, Arizona, Florida, and Georgia continue to outperform because demand is structural, not trendy. Texas stands out for business migration, flexible land use, and long term population growth, especially outside major metros like Austin and San Antonio. Arizona surprises a lot of buyers because of off grid demand, solar development, and retirees seeking dry climates, but water rights and septic rules must be understood. Florida delivers strong returns due to scarcity and in migration, but insurance and zoning matter more there than anywhere else.

Lower cost states like Michigan, Alabama, Indiana, and South Carolina attract investors who want inexpensive entry points with recreational or agricultural upside. These markets tend to reward buyers who understand zoning, access, and local buyer demand rather than those chasing appreciation alone. Delaware works for a different reason: scarcity and proximity to major East Coast metros, even though parcel sizes are smaller and prices are higher.

The biggest mistake I see is people buying out of state without local knowledge. Land is regional, and ROI depends on understanding what buyers in that market actually want. Numbers matter, but boots on the ground matter more.

If you want help evaluating land opportunities or need trusted contacts before you buy, visit https://chrispesek.com, email chris@drippingspringshometeam.com, or call 512-736-1703. Chris Pesek is a Texas Hill Country Realtor specializing in land, acreage, and custom homes. 383+ sales. Top 2 Percent Producer. 63 five-star reviews. Texas Hill Country, Central Texas, Austin TX, land investment, buying land out of state, long term land ROI, U.S. land investing