As the sixth-largest state in the nation, Arizona offers plenty of sprawling acreage for prospective landowners. It’s a unique place in terms of property opportunity, with the Grand Canyon in its own backyard plus urban potential in Phoenix. While demand for Arizona land is growing, property is a major investment, so it’s understandable that you’re wondering whether Arizona land is the right choice for you.
In this comprehensive guide, we’ll walk through everything you should know before buying land in Arizona, from long-term advantages to practical evaluations. Before you know it, you’ll be on track to making a confident and informed decision on your land-buying journey.
Why Buyers Are Considering Land in Arizona Right Now
Arizona is one of the fastest-growing states in the US, so it’s no surprise that land demand is booming. The state’s population has surged in recent years, in part due to increased migration patterns, making Arizona a hotspot for economic growth. With tens of thousands of new jobs and businesses in the state, average personal income is also on the rise. In turn, the homeowner rate is increasing at one of the fastest rates in the country.
Statistics aside, Arizona has always drawn potential landowners due to its outdoor lifestyle appeal. Teeming with stunning landscapes, national parks, and outdoor recreation, Arizona is a paradise for nature lovers. The state’s varied terrain spans rural and suburban areas alike, with lots of opportunities for hiking, hunting, fishing, biking, and more.
Small towns are perfect for raising a family, and Arizona is also increasingly popular amongst retirees, with nearly 20% of the population being 65 or older. With a low cost of living and no end of gorgeous views, Arizona is an appealing place to spend your golden years.
No matter what type of land you’re looking for, Arizona has it all:
- Residential (including move-in-ready homes)
- Farming
- Ranching
- Hunting
- Recreational
- Investment
The wide diversity of options makes it easy to find a property that fits your goals and needs.
Top Benefits of Buying Land in Arizona
Purchasing land in Arizona is a lifelong personal and economic investment. When you choose Arizona acreage, you’ll enjoy benefits such as:
- Affordability – Arizona is a relatively affordable state, especially compared to its more pricey neighbors like California. In fact, Arizona has been ranked as the third most affordable state in the nation when taking into account household income, income taxes, and cost of living.
- Diverse landscapes – Arizona’s terrain is beneficial to outdoor enthusiasts and landowners alike. From the astounding Grand Canyon to cacti-laden Saguaro National Park, protected landscapes offer vast expanses of natural beauty. Arizona is also home to mountainous regions, pine forests, desert plains, and farmland, offering a range of potential acreage.
- Favorable taxing – Arizona boasts a statewide flat income tax rate of 2.5%, so rates don’t fluctuate based on taxpayer income. This can make it easier to budget long-term, especially if you’re planning to retire in Arizona. There is also no estate tax or inheritance tax.
- Long-term investment potential – Property is always a long-term investment, and buying land in Arizona is no exception. Thanks to the state’s population growth, thriving economy, industry expansion, and outdoor appeal, Arizona land will only increase in value over time, offering an attractive return on investment if you decide to resell.
Thanks to these advantages and more, Arizona is one of the most lucrative western states for owning property. Of course, understanding the advantages is only part of the process as many buyers also want to know the best places to buy land in Arizona, which ultimately comes down to your goals, budget, and lifestyle preferences.
Important Considerations When Buying Land in Arizona
So, you’re interested in purchasing land in Arizona. To ensure that Arizona acreage is a smart investment in your future, it’s important to evaluate the following factors:
- Water rights – Arizona’s surface water is managed with a unique water rights system called prior appropriation, which boils down to “first in time, first in right.” This means that the first person to put surface water to a beneficial use acquires the senior water rights, which are honored above other appropriators down the line. A water rights permit could be given for irrigation, water power, livestock, recreation, fishing, and more. Before buying land, check for any water rights permits with the local authorities, who can also advise on ownership transfer and open claims.
- Zoning rules – All states have regional zoning regulations to promote public safety and land preservation. Local zoning codes can vary, so it’s crucial to determine what is allowed on your acreage before you buy it. For instance, can you build a home on an undeveloped parcel? How far back from a water line do structures need to be? How many residential units are allowed per acre?
- Utility access – If you’re planning to live on your land, you’ll need to ensure it has access to everyday utilities like water, electricity, and sewage—or that it has the infrastructure in place to install services down the line. Without proper setup, utilities can become costly, especially in rural areas. Another tip? Make sure that your acreage has a functioning access road. No matter how nice a property is, if you can’t access it, you can’t use it.
- Proximity to urban centers – Your lifestyle and budget will inform how rural your desired land is. Being in a metro area is great for commuting to work easily, but prices tend to be higher. Living in a remote area brings you a calmer lifestyle closer to the great outdoors, but you’ll have to factor in driving distance to everyday necessities. The pros and cons depend on how off-grid you’re interested in living.
Being informed is the first step to making a well-rounded decision, and a surefire way to save time and money as a future landowner.
How to Evaluate if Arizona Land Is the Right Investment for You
Arizona has an undeniable appeal for landowners—but is it the right state for you? Weigh the following factors to get a clear perspective on your investment.
- Budget – Land is often more than the sticker price—do you have the funds for potential costs like construction, repair, utility hookup, or land clearing?
- Land use – Narrow down properties based on the land use you need. Recreational, residential, investment, agricultural—the list goes on.
- Appreciation potential – Location, local job markets, population growth, and more can all influence an appreciation trend.
- Resale opportunities – Is the property in tip-top shape? How much money in improvements are you going to put in? Is there infrastructure, development potential, or zoning restrictions? If a return on investment is a dealbreaker, asking these questions and more will help determine if land is worth your time.
Creating a detailed outline of your goals, needs, and concerns is crucial when purchasing land.
How Buying Land in Arizona Differs From Other States
As we’ve mentioned, Arizona is a fairly unique state, which allows its land market to stand out even against nearby places like Texas, Colorado, or California.
Arizona presents distinct challenges to consider, such as water scarcity, drought, dry desert terrain, and extreme heat. On the flip side, it also offers unique opportunities—widespread growth corridors and endless natural beauty. It’s also more affordable than other Western states.
In short, Arizona is truly one-of-a-kind, and overcoming potential hurdles will only pay off in the long run.
Tips for First-Time Land Buyers in Arizona
Not sure how to buy land in Arizona? We’ve got you covered. With these three insider tips, your first land purchase can be a breeze.
- Work with local land agents – Connecting with regional professionals who specialize in land transactions is the best way to streamline the process. They’ll provide expertise on the local market and handle the back-and-forth of phone calls and negotiations.
- Check county records – You should be aware of any land surveys, easements, deeds, and water permits before signing on the dotted line.
- Understand financing options – It’s okay if you can’t pay for your land out of pocket. Explore different land loans like banks, credit unions, owner financing, and USDA loans for agricultural land.
Before you know it, you’ll have the deed to your dream property.
What to Expect After Buying Land in Arizona
Once you’re officially an Arizona landowner, it’s time to tailor the property to your goals. For example, raw land has lots of development potential, so you can customize a homestead to your family’s needs. If you’re drawn to Arizona’s outdoorsy lifestyle, your next steps are exploring all the recreational potential on and around your acreage. And if you’re holding onto the land as a long-term investment, make sure to stay on top of proper maintenance and upkeep to promote resale value.
Browse Arizona Listings With Confidence
Explore land for sale in Arizona on Land.com, the nation’s leading marketplace for rural real estate. With thousands of properties to choose from, it’s easy to use our search filters for budget, size, land use, and more.
Then, find a top Arizona land professional to take advantage of on-the-ground knowledge, insight into market trends, and expert negotiating skills. Land Pros ensure a hassle-free buying process from start to finish, so you can focus more on your new property and less on tedious paperwork.
Find your perfect Arizona land today.
Sources:
US News & World Report. Arizona. https://www.usnews.com/news/best-states/arizona.
Office of the Arizona Governor. Arizona on the Rise. https://azgovernor.gov/sites/default/files/arizona_on_the_rise_0.pdf.
Office of the Arizona Governor. Arizona at a Glance. https://oeo.az.gov/sites/default/files/documents/Arizona.
ABC 15 Arizona. Arizona is the third most affordable state to live in, data analysis shows. https://www.abc15.com/news/state/arizona-is-the-third-most-affordable-state-to-live-in-data-analysis-shows.
Tax Foundation. Taxes in Arizona. https://taxfoundation.org/location/arizona.
Arizona Department of Water Resources. Surface Water. https://www.azwater.gov/surface-water/surface-water-overview.
Investopedia. Land Loans: Everything You Need To Know. https://www.investopedia.com/articles/credit-loans-mortgages/090716/land-loans-3-things-know-you-buy-land.asp.
