Hawaii is known for luaus, surfing and sunshine, but it’s also home to some of the nation’s most affordable land. Its rural areas with a tropical feel attract second homeowners, retirees and investors looking for a little bit of paradise.

Real estate in the Aloha State stretches across 132 islands, islets and atolls. The landscape varies from bustling urban Honolulu to remote, largely undeveloped wilderness. Property type – residential, commercial or agricultural – heavily influences the price per acre. Commercial ventures generally fetch higher prices than those intended for residential purposes due to the business potential.

Unlike mainland states, most Low-price land in Hawaii is privately owned by individuals rather than government entities. The islands’ agrarian economy relies on a unique, specialized set of crops that thrive in Hawaii’s tropical climate, including sugarcane, coffee and macadamia nuts. Agriculture is a vital industry that provides jobs and boosts Hawaii’s GDP, but the state’s small size and remote location limits opportunities for expansion.

In addition, Hawaii’s prime tropical positioning paired with strict planning laws and inherently confined land supply approved for housing developments statewide drives demand – and prices – to an unprecedented level. Even so, savvy investors who buy raw land with the intention to develop it can often reap substantial returns if they research and model project budgets carefully.

What are the lowest-priced plots of land in Hawaii?

The cheapest parcels of land in Hawaii range from $30,000 to $100,000 per acre. More affordable inland areas near towns such as Lihue, Koloa and Waimea offer affordable opportunities further away from swanky resorts and popular beaches. Likewise, parts of Kauai with its historic, small-town feel offer cheap vacant lots compared to its pricier counterparts.

On the Big Island, there are pockets of affordability throughout, especially in areas closer to volcanoes such as Kahuaina and Mauna Kea. Many of these are former sugarcane plantations, which have been converted to residential and agricultural use. It’s also possible to find low-priced vacant lands in areas with active geologic events, as volcanic eruptions can cover up much of the state.

Regardless of where you choose to locate, be sure to consider closing costs, land transfer taxes, loan fees, title insurance, conveyance fees and infrastructure requirements like clearing land, basic utilities, driveways and site prep. These extras may add up to about 2-5% of the purchase price. Also remember that you’ll need to secure financing before making a full purchase.