Are you ready to build on your land, but are you wondering about the real Cost of utilities?
Ever found the perfect plot of land and thought, “Now what?”
Before you build your dream home or investment property, you’ll need one crucial thing: utilities, water, electricity, sewer, gas, and maybe even fiber internet. But how much does it cost to get them hooked up?
Whether you’re an investor, a first-time land buyer, or a seasoned builder, the hidden Cost of getting utilities on land can make or break your budget. This guide explains exactly what you’ll pay, where the costs come from, and smart ways to finance your development without draining your cash flow.
Quick Answer: How Much Do Utilities Cost on Raw Land?
On average, expect to pay between $10,000 and $30,000 to install utilities on undeveloped land. The range depends on:
- Location (urban vs rural)
- Distance from main utility lines
- Type of utilities needed
- Soil conditions & permits
- County/municipal regulations
Now, let’s explore what each utility costs and how to plan smartly.
Electricity Installation Cost
Typical Cost: $2,500 – $25,000+
Connecting electricity to your land depends mainly on the distance from the nearest power pole.
- Short runs (<100 feet): $2,000 – $5,000
- Long runs (500+ feet): $10,000 – $25,000+ (especially with trenching)
- Overhead vs underground: Underground is cleaner, but can double the Cost
Pro Tip: Check with your local utility provider; some offer incentives or cost-sharing programs.
Electricity Utility Installation Stats
- According to the U.S. Energy Information Administration (EIA), the average Cost to extend electric service in rural areas ranges from $10,000 to $30,000, depending on the distance from the grid.
Water Connection Costs
Typical Cost: $1,000 – $20,000+
There are two options here: municipal water hookup or drilling a well.
Municipal Water:
- Tap fee: $500 – $5,000
- Line trenching: $10–$100/foot
- Meter installation: $500–$1,500
Drilled Well:
- Drilling: $30–$60/foot (average depth: 100–400 feet)
- Pump system: $1,000–$5,000
- Total: $5,000 – $20,000+
Important: Water rights laws vary by state; always verify before drilling.
Water & Well Drilling Costs Stats
- The National Ground Water Association (NGWA) states the average residential well drilling cost in the U.S. ranges from $5,000 to $12,000, with depth and geology as key factors.
- Source: NGWA Groundwater FAQ
- According to HomeAdvisor (based on thousands of customer-submitted projects), the average Cost of installing a water line is $1,200–$5,000.
- Source: HomeAdvisor Water Line Costs
Sewer vs Septic Costs
- Municipal Sewer Hookup: $1,500 – $15,000
- Septic System Installation: $4,000 – $20,000
Municipal sewer costs include tap fees and line extension charges.
For septic systems:
- Site inspection & perc test: $300–$1,000
- Design, tank, and leach field: $4,000 – $15,000+
- Advanced systems (rocky soil, wetlands): $20,000+
Watch Out: Not all land is septic-eligible. Get a perc test done before you buy.
Gas Line Installation Cost
Typical Cost: $500 – $5,000+
Gas is often optional but essential for heating, stoves, and water heaters.
- Hookup fees: $500–$2,000
- Line trenching: $20–$75/foot
Bonus Tip: Some rural areas may require a propane tank instead of the $1,500–$3,000 budgeted.
Internet & Communication Utilities
Typical Cost: $0 – $10,000+
-
Fiber internet: $1,000 – $10,000+ (if provider has to extend infrastructure)
-
Satellite or cellular-based internet: $100 – $700 setup (no trenching needed)
Future-Proofing Idea: Even if you won’t use high-speed now, installing conduit for future fiber can boost resale value.
Permit & Inspection Fees
Local governments often require:
- Utility permits: $50–$500 per utility
- Environmental impact studies (especially septic): $500–$2,000
- Inspections: $100–$500 each
These add up quickly; factor them into your total.
Total Estimated Utility Costs (Summary Table)
| Utility | Low Estimate | High Estimate |
|---|---|---|
| Electricity | $2,500 | $25,000 |
| Water | $1,000 | $20,000 |
| Sewer/Septic | $1,500 | $20,000 |
| Gas | $500 | $5,000 |
| Internet | $0 | $10,000 |
| Total | $5,500 | $80,000+ |
Hidden Costs You Didn’t Expect
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Trenching and boring obstacles (trees, rocks, slopes)
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Utility easements or right-of-way acquisition
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Delays due to permitting or seasonal ground conditions
Planning is key; these delays can cost you thousands in interest, labor, and timeline setbacks.
Get a Loan?
Contact Trentium Capital for a new construction, bridge, or fix-and-flip loan for your next project.
