Well, in Summit, New Jersey, twenty three miles from Wall Street and with a good rail commute to The City, we're paying from $900,000 to over $1,500,000 for houses to tear down and do new in their place. All real estate markets are local. The lots I'm referring to are from 1/3 acre to an acre in size.
That said, the market here is still good (last summer was not), and these properties will likely appreciate quite a bit over time. The market is liquid, meaning you can sell things readily. When you get into the rural areas, as nice as they may be, the market thins out quickly, liquidity goes to hell, and appreciation isn't nearly as good. That 25 acres with shop and Conestoga wagons, etc, for $625,000 may languish on the market for some time.