Buying Land in Arizona: What Makes It a Hot Spot This Year

Arizona’s land market is experiencing unprecedented momentum in 2025, making it one of the hottest investment destinations in the United States. With its diverse landscapes ranging from majestic mountains in the north to arid deserts in the south, Arizona offers exceptional opportunities for land buyers with varying goals and budgets.

As we’ve seen firsthand through hundreds of successful transactions, Arizona’s appeal extends far beyond its stunning scenery. The state’s strong economic indicators, booming tourism, expanding housing market, and business-friendly policies have created a perfect storm for land investors looking to secure their financial future.

Thriving Economic Growth Driving Property Values

Arizona’s economy has maintained impressive growth, with the state’s GDP expanding by 3.2% in the first quarter of 2025 – outpacing the national average of 2.7%. This economic strength has directly translated to increasing land for sale values across the state.

The sustained economic expansion is largely driven by diversification beyond traditional sectors. While tourism remains strong, technology, healthcare, manufacturing, and renewable energy have become significant contributors to Arizona’s economic resilience. According to the Arizona Commerce Authority, the state added over 72,000 jobs in the past year, with particularly strong growth in the Phoenix metropolitan area.

This job creation has fueled migration to Arizona, with the state welcoming approximately 90,000 new residents in 2024 alone. The population growth directly impacts land for sale, especially in counties surrounding major employment centers.

Tourism Industry’s Impact on Land Investment

Arizona’s tourism sector continues to break records year after year. The Arizona Office of Tourism reported that 2024 brought over 46 million overnight visitors to the state, generating more than $30 billion in direct spending. This thriving tourism economy creates excellent opportunities for land investors looking to develop vacation rentals, recreational properties, or commercial ventures.

The outdoor recreation economy has been particularly strong, contributing $15 billion to Arizona’s GDP in 2024, according to data from Axios Phoenix. This trend has increased demand for rural properties near natural attractions, hiking trails, and outdoor recreation areas.

Tourism hotspots like Sedona, Flagstaff, and areas surrounding the Grand Canyon continue to see land values appreciate faster than the state average. For investors, this means properties in scenic areas can provide dual benefits: personal enjoyment and strong potential for appreciation.

Housing Demand Outpacing Supply

The housing shortage across Arizona remains acute in 2025, creating significant opportunities for land investors. Recent studies examining over 4,100 U.S. cities found that suburban growth in Arizona is outpacing urban development – a trend that favors raw land investors who hold property in the path of growth.

Major cities like Phoenix and Tucson continue experiencing housing booms, with median home prices rising approximately 5.8% year-over-year. This housing pressure has created ripple effects throughout surrounding counties, pushing development further from city centers.

For land investors, this housing demand translates to increasing values for properly positioned properties. Land that may have seemed remote just a few years ago is now becoming desirable for residential development as city boundaries expand.

Infrastructure Investments Enhancing Accessibility

Arizona’s commitment to infrastructure improvement has been a game-changer for land values. The state allocated over $6.2 billion for transportation projects in 2024, improving roads, energy systems, and public transit options. These investments make previously isolated parcels more accessible and valuable.

Recent reports highlight Arizona’s power grid as among the most reliable in the nation, with 24% of the state’s power now coming from renewable energy sources. This infrastructure reliability reduces development risks for land investors and future builders.

The expansion of high-speed internet into rural areas has also dramatically changed the potential uses for remote properties. As remote work remains a permanent fixture in the American economy, properties with connectivity have seen their values increase substantially.

Best Arizona Regions for Land Investment

Mohave County: Affordability Meets Opportunity

Mohave County stands out as an exceptional value for land buyers in 2025. Located in northwest Arizona, this county offers a blend of desert landscapes, mountain views, and access to the Colorado River. With land prices averaging $3,000-$10,000 per acre for undeveloped parcels, Mohave County remains one of Arizona’s most affordable regions.

The proximity to Las Vegas (under two hours from many parts of the county) creates additional appeal for investors. We’ve seen particularly strong interest in properties near Lake Havasu City and Kingman, where infrastructure is well-established and recreational opportunities abound.

Pima County: Growth Near Urban Centers

Pima County, home to Tucson, offers an attractive balance of affordability and proximity to urban amenities. The county’s population grew by approximately 1.8% in 2024, driven by the university, healthcare facilities, and the growing technology sector.

Land investors have found success in the outlying areas of Tucson, where residential development continues to expand. Properties within 30-45 minutes of the city center have seen particularly strong appreciation as remote work enables residents to live farther from their employers.

Yuma County: Agricultural Potential and Border Advantage

Yuma County remains one of Arizona’s agricultural powerhouses while offering some of the state’s most affordable land prices. Known as “the sunniest city on Earth,” with 300+ days of sunshine annually, Yuma offers unique advantages for both residential and commercial development.

The county’s strategic location near both California and Mexico creates additional value for investors interested in commercial properties. Land near Interstate 8 has particular appeal for industrial and distribution uses, while residential development continues to expand as the population grows.

Creative Potential and Freedom in Select States

If you’re considering land in Tennessee or Kentucky, here’s something unique: our properties in these states come with no zoning restrictions. That means you have the freedom to build what you want , a home, a tiny house, a cabin, or even a mobile setup. This flexibility truly reflects the American Dream and makes these locations a standout choice for buyers looking for creative freedom and fewer limitations.

Meanwhile, in Arizona, many of our available lots offer strong agricultural potential , perfect for buyers interested in homesteading, small-scale farming, or off-grid living. These properties are not only affordable but also offer room for sustainable growth, making them ideal for those seeking a more self-sufficient and independent lifestyle.

Critical Factors Affecting Arizona Land Values

Water Access: The Essential Resource

Water access remains the single most important factor affecting Arizona land values in 2025. Properties with reliable water sources – whether through municipal connections, wells, or water rights – command significant premiums over those without secured water access.

According to recent reports, Arizona’s water supply relies primarily on groundwater (41%), Colorado River water (36%), in-state rivers (18%), and reclaimed sources (5%). This distribution highlights the importance of understanding water rights and access when evaluating any land purchase in the state.

For investors, we recommend prioritizing properties with documented water rights or located in areas with stable aquifers. The difference in value between properties with and without water access can be as much as 300-500% in some regions.

Zoning and Land Use Regulations

Arizona’s counties and municipalities have varying approaches to zoning and land use, creating a complex landscape for investors. Before purchasing any property, it’s essential to understand the current zoning designation and any potential for rezoning.

In growth areas, land zoned for commercial or high-density residential use typically commands the highest prices. However, we’ve found that agricultural and low-density residential parcels often offer the best appreciation potential when located in the path of future development.

Investors should pay particular attention to municipalities with streamlined permitting processes and growth-friendly policies. These jurisdictions typically see faster development timelines and stronger price appreciation for raw land.

Transportation Infrastructure and Accessibility

Properties with easy access to major highways, airports, and public transit consistently outperform more isolated parcels. The completion of new roadway projects can dramatically increase the value of previously hard-to-reach properties.

We’ve observed that parcels within 10-15 minutes of major highways typically command 40-60% higher prices than similar properties requiring longer drives on secondary roads. This accessibility premium has only increased as fuel costs have risen and convenience becomes a higher priority for buyers.

Smart Strategies for Arizona Land Investment

Research and Due Diligence

Before purchasing any Arizona land, we recommend thorough research into:

• Historical price trends in the specific county and neighborhood

• Growth projections for nearby cities and towns

• Infrastructure plans that might affect accessibility

• Water availability and rights for the specific parcel

• Environmental assessments to identify any potential issues

• Zoning regulations and potential for rezoning

This research phase can save investors from costly mistakes and identify properties with the highest appreciation potential.

Financing Options for Land Purchases

Arizona’s land market offers several financing alternatives that make ownership accessible even without perfect credit:

• Owner financing with flexible terms and minimal down payments

• Traditional land loans from banks and credit unions (typically requiring 20-30% down)

• Cash purchases for maximum negotiating leverage

• Joint ventures with other investors to access larger parcels

At Discount Lots, we specialize in owner financing options that allow buyers to secure land with monthly payments as low as $200-$300, making property ownership accessible to nearly everyone.

Development Considerations and Hidden Costs

When evaluating land purchases, we always encourage buyers to consider all potential development costs:

• Utility installation (water, sewer, electricity, internet)

• Access road construction or improvement

• Site preparation and grading

• Permitting and inspection fees

• Property taxes and potential special assessments

• Homeowners association dues (if applicable)

These development costs can significantly impact the total investment required to make raw land usable. By factoring these expenses into initial calculations, investors can make more

Frequently Asked Questions (FAQs)

Why is buying land in Arizona a smart investment in 2025?

Arizona offers a unique combination of economic growth, population increase, infrastructure improvements, and natural beauty. These factors, combined with strong job creation and a thriving tourism sector, are driving up land values across the state,making 2025 an ideal time for land investment.

What are the best areas in Arizona to buy land right now?

Top regions for land investment include:

• Mohave County – Affordable land near Las Vegas and Lake Havasu
  

• Pima County – Strong growth and proximity to Tucson
  

• Yuma County – Agricultural potential and border city advantages
  Each offers different investment opportunities based on location, zoning, and future development prospects.

How does Arizona’s water access impact land value?

Water is one of the most critical factors in Arizona land investment. Properties with secured water rights, municipal access, or stable aquifers can be worth 300–500% more than land without guaranteed access. Always verify water availability before purchasing.

Can I finance land in Arizona if I don’t have great credit?

Yes. At Discount Lots, we offer owner financing with no credit check, allowing buyers to secure land with low monthly payments (often as low as $200–$300). This makes land ownership accessible even to first-time investors or buyers with limited credit history.

What hidden costs should I consider before buying land in Arizona?

When purchasing land, factor in potential development expenses, such as:

• Utility installation (water, power, internet)

• Road access or grading

• Permits and zoning applications

• Property taxes and potential HOA fees
  Being aware of these costs helps you plan your investment more effectively and avoid surprises later.