Commercial Real Estate News / Buying / Top 5 Counties to Buy Land for Sale in Illinois

Top 5 Counties to Buy Land for Sale in Illinois

Published: 10-27-23 Category: Buying

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With a total GDP of $797 billion and a population of over 12 million, Illinois has one of the most diverse economies in the world, and opportunities for commercial land investments are numerous, specifically for the state's massive agriculture, manufacturing, transportation, and biotech sectors.

Whether you're looking to homestead or develop commercial property, buying land for sale in Illinois can be an excellent investment. But Illinois is a big place, and there's lots of land to go around (36 million acres, to be precise). Where, then, should you buy?

Fortunately, we've got you covered. Here, we'll cover the top 5 counties to buy land for sale in Illinois. We've ranked these counties based on their economic opportunities, local demand, and land development incentives.

Let's get started.

#1 – Peoria County

Peoria County is in central Illinois, and its seat is the city of Peoria. The cheapest land for sale in Peoria comes in at about $3,000 to $5,000 per acre. Peoria has a diverse economy headed by healthcare, manufacturing, agriculture, and biomedical sciences.

Peoria City is currently making a concerted effort to bolster its biomedical manufacturing presence due to the presence of the University of Peoria Medical College, one of the largest public medical schools in the nation.

The Peoria region is also the largest producer of pumpkins in the nation, so investing in land for pumpkin agriculture might be a viable, if niche, option.

#2 – Fulton County

Located in Western Illinois, Fulton County is southwest of Peoria, with major cities in Canton and Lewistown.

Rural land prices in Fulton County are well below the state average and hover around $5,000 to $7,000 per acre, based on our research. Its major industries include healthcare, manufacturing, and retail trade.

Canton and Fulton counties are in an Illinois Enterprise Zone and so offer a number of incentives to buy land and develop, including relaxed zoning restrictions, special financing options, business license waivers, and property tax abatements.

#3 – McLean County

McLean County is the single-largest county by land in Illinois and the state's agricultural powerhouse. McLean produces the most soybeans and corn out of any county in Illinois, and the average net cash income for a farm in McLean is over $111,000 as of 2017.

Average farm lease rates in McLean County in 2021 were $262 per acre, with a median sales price of about $7,600 per acre—below the state average. These stats easily make McLean the single-best county in Illinois to invest in farmland.

#4 – Adams County

Adams County is on the western border of Illinois, and its seat is Quincy. Its biggest industries are healthcare, retail, manufacturing, and transportation/warehousing.

Quincy's low cost of living, idyllic historic district, and above-average school districts make buying land for sale in Adams County and settling down an attractive prospect.

Adams County also recently launched a new initiative to stimulate economic development in the region. This plan is through the GREDF and offers retail incentives, real estate tax abatements, and land loan funds for rural land development in Adams County.

#5 – Cook County

Cook County is the largest county in Illinois and the second-largest county by population in the nation. The seat of Cook County is Chicago, which boasts one of the largest GDPs in the nation. Specifically, Chicago is experiencing a huge spike in demand for industrial projects, which need land for development.

Cook County also has the Cook County Land Bank Authority (CCLBA), a mechanism to rescue land that owes significant back taxes.

Through the CCBLA, you can acquire vacant land for cheap and develop it, and you don't have to pay back taxes on the acquired land as the new owner.

What's the Average Cost Per Acre of Land for Sale in Illinois?

Top 5 Counties to Buy Land for Sale in Illinois

Based on the USDA's 2023 Land Values Summary, the average cost of an acre of farmland in Illinois is $9,300 per acre. Farmland values in Illinois are, on average, higher than most other states in the Midwest and Corn Belt.

Land values in Illinois can vary significantly depending on a wide range of factors. That's why it helps to have a commercial real estate broker on your investment team, whether you're buying land for sale in Pike County or land for sale in Fulton County.

Land brokers have in-depth knowledge and experience dealing with all aspects of finding and acquiring land, such as:

Pulling environmental reports;
Analyzing land financials;
Drafting letters of intent;
Managing properties;
Finding commercial tenants; and
Negotiating contracts

A good land broker can help maximize your investment potential and help you avoid common mistakes when buying commercial property.

What's the Cheapest Place to Buy Land in Illinois?

Based on our research of land listings, the cheapest places to buy land for sale in Illinois seem to be Cass, Henderson, and Hancock counties, where land prices can dip as low as $1,000 per acre.

All three of these counties are located in Western Illinois.

Is Buying Land in Illinois a Good Investment?

Yes, buying land for sale in Illinois can be a great investment, especially farmland. Illinois is one of the nation's largest agricultural producers and produces a lot of corn and soybean, both of which have high per-acre yields.

There's also high demand for industrial space near major urban centers in Illinois, such as Chicago.

Additionally, outdoor recreation generates over $3 billion in revenue in Illinois annually, so you can lease commercial land for a wide range of activities, like hunting, camping, kayaking, and more.

Overall, land is a fantastic commercial real estate investment in a state with a diverse economy like Illinois, as there are several opportunities to put your parcels to work and generate passive income.

The main downside of buying land for sale in Illinois is taxes. Illinois has the nation's second-highest effective property tax rate at about 2.07%. However, Illinois will provide tax breaks for certain conservation projects on undeveloped land.

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