5 Min Read
If you're planning to build a custom home in Central New Jersey, understanding the cost of land is a key part of the process. We break down how much an acre costs, if you can buy land in New Jersey, and how to finance land. We have all the answers you need to any questions about buying land. Let's get started.
Can You Buy Land in New Jersey?
You can buy land in New Jersey, but it can be challenging. Due to limited availability, strict zoning regulations, and environmental restrictions, finding the right piece of land requires time, local knowledge, and strategic planning. Whether you're looking for vacant land for sale in NJ or buying land to build a custom home, working with experienced professionals makes all the difference.
What does an Acre of Land Cost in New Jersey?
What is the average cost per acre? The average price per acre in the state is around $158K, but prices vary significantly depending on location, access to utilities, zoning, and development potential.
Hunterdon County
In Hunterdon County, land prices can vary greatly depending on location, and buying a plot of land requires paying attention to the details. More rural areas tend to start around $10K to $30K per acre, offering great value for open space. Expect prices to climb closer to $50K to $100K per acre in prime locations with strong appeal.
Mercer County
In Mercer County, land pricing depends heavily on location. You’ll find parcels starting around $50K per acre in the lower range. However, in premium areas like Princeton, where demand and amenities are high, land can reach $850K per acre in particularly historic, high-demand areas.
Somerset County
Land in Somerset County typically falls within a higher price bracket. Standard residential lots range from $140K to $250K per acre, reflecting the area's strong schools, commuter access, and overall desirability. These lots often come with existing infrastructure and are well-suited for custom home building. Due to demand, land near the coast goes for $450K per acre.
Clearing the Land
How much does it cost to clear an acre of land in New Jersey? Depending on tree cover, slope, and site access, clearing and grading an acre can range from $3K to $10K. Want to know more? Learn the secrets to buying land in New Jersey and set yourself up for success.
How much money do you need to buy land?
Here's a breakdown of the typical land costs by parcel. While an acre is a common size, lot sizes vary. Of course, the cost of land will also depend on the township you buy in. How expensive is land in New Jersey? It is among the most expensive in the country due to population density, infrastructure, and regulatory requirements. On average, an acre of land in New Jersey ranges from $50K to $850K.
Here are more ranges for the cost of land:
- .5 acre: $40K–$200K
- 1 acre: $50K–$850K
- 2 acres: $90K–$1M
- 4 acres: $120K–$1.5M
- 5 acres: $250K–$1.25M
- 10 acres: $500K–$ 2.5M
- 25 acres: $1.2M+
Factors influencing these costs include road access, soil condition, availability of utilities, and proximity to schools or town centers. Larger lots tend to offer more flexibility in design and privacy, but they often come with higher costs for site prep, clearing, and infrastructure. On the other hand, smaller parcels may be more affordable up front but could require more due diligence to ensure buildability. Understanding your goals and budget is key when deciding which lot size is right for you.
Why It's Hard to Find Land in New Jersey
Why is it so hard to find land in this state? There are a few reasons, some of which might seem quite understandable and others more surprising. Let's examine the details and learn more.
Limited Space
One of the primary challenges is the limited number of undeveloped parcels still available. Much of New Jersey's buildable land has already been developed, particularly in suburban and commuter-friendly regions. As a result, the supply of open, construction-ready lots is shrinking year over year.
Zoning Laws
Strict zoning laws also add another layer of difficulty. Many municipalities have regulations that restrict the types of structures that can be built, limit subdividing land, or require specific lot sizes and usage types. Even when land is available, it may not be zoned for residential development.
Environmental Protections
Environmental protections are another key factor. Wetlands, preserved woodlands, and conservation zones can limit or prohibit construction altogether, even on open or unused parcels.
High Demand
Finally, the demand for land is high. Investors, developers, and individual buyers are all competing for the same limited inventory, which means available lots often sell quickly. Because of this, anyone hoping to purchase land must be prepared to move fast, do thorough due diligence, and work with professionals who understand the local landscape.
Steps to Buying Land
Buying land in New Jersey is a process that involves several key steps. Let’s look at what those steps are and how you can take them.
The steps:
- Define your need
- Secure funds
- Find land
- Conduct site evaluations
- Navigate approvals and clearances
- Close on the property
The buying land process can be time-consuming, especially if you’re new to it. That’s why many buyers partner with local builders early on. How much does a plot of land cost in NJ? It really depends on the size of the plot. How long does it really take to buy land? The process can take 30 to 90 days, depending on financing, inspections, and township approvals.
Getting a Loan
Can you get a loan to buy land in New Jersey? Yes. There are multiple types of land loans in New Jersey, including:
- Raw land loans: For undeveloped parcels
- Unimproved land loans: For land with minimal infrastructure
- Improved land loans: For land with road access and utilities
There are so many questions to ask before buying land. For example, which loan is best for buying land? Improved land loans with road and utility access often offer the best terms. Interest rates and terms vary depending on how soon you plan to build. Is it better to finance or pay cash for land? Both have benefits. Paying cash can speed up the process and give you leverage in negotiations.
Financing, however, keeps your capital liquid and may be preferable if you plan to build soon and roll the loan into a construction mortgage. Do you pay taxes on land in NJ? Yes, landowners must pay property taxes, even on undeveloped land. Rates vary by municipality.
Our team can Help You find and Buy Land
At GTG Builders, we're more than just a home builder; we’re a family-owned business with a physical location in the heart of Flemington, New Jersey, and deep roots throughout Central NJ. Over the years, we've worked closely with clients like you to find and develop land that fits their goals and dreams. We've even developed homeowner resources to help you along your journey.
Your Trusted Guide
Our support starts with helping buyers identify the right property. We assist with land sourcing, focusing on lots that offer real potential. Once a property is selected, we provide comprehensive site evaluations, considering buildability, soil conditions, slope, and access to utilities. This is all part of our process if you need help sourcing land.
We also manage the permitting process, handling zoning requirements, septic planning, and environmental reviews to ensure everything is in order. From there, we guide you through custom home design and full construction services tailored to your needs. We live and build here and take pride in helping our communities grow through responsible, thoughtful development. You can take a look at our portfolio and see the difference. Not ready for a custom home right now? We also build ADUs, add to your home with additions, and complete whole-home remodels.
Contact Us
If you're looking for land for your custom home, we're ready to help. Contact us today for a consultation.
