Buyers can buy a home for $400 in this shrinking Southern town — but there’s a catch

Homebuyers desperate for a deal may be curious to learn more about a small town in Arkansas where homes sell for just over $400.

In Pine Bluff, just 45 miles outside of Little Rock, a home recently sold for $402.74 at a tax auction.

The town found itself in the spotlight when a documentary titled “The Town Left Behind: Pine Bluff’s $400 Abandoned Houses” received 1.6 million views in the past three weeks on YouTube.

“There is an overabundance of ‘vacant’ properties that are prime for restoration and redevelopment,” director Michael Schwarz told Realtor.com®. “But not enough people willing to move to Pine Bluff, or not enough people currently living in Pine Bluff who can afford it.”

But there’s a catch, of course: According to the 2020 U.S. Census, Pine Bluff is the “fastest shrinking city” in America, losing over 12% of its population in a decade largely due to a lack of jobs and poverty. – quality schools.

After Schwarz’s documentary went viral, Mayor Shirley Washington responded, “We are committed to revitalizing our neighborhoods and ensuring that Pine Bluff remains a safe and thriving place to live. The city has implemented several programs to address the issue of abandoned houses.â€

But the city is talking about bringing in new housing developments when there aren’t enough people to fill the homes that have already been built, Schwarz notes.

A Brief History of Pine Bluff

Pine Bluff was once one of the most prosperous regions in the Deep South after World War II because of its vast farmland. It was also home to two successful paper mills.

However, as those industries changed, the city and its economy began to suffer.

Crime increased as Pine Bluff’s population dwindled and many homes in the area were abandoned.

“If Pine Bluff works to bring more job opportunities, it will create a more attractive reason to move to the city,” says Schwarz.

Is Pine Bluff ready for a comeback?

Many people believe that the city is ready for revitalization.

“With a commitment to economic growth and community development, Pine Bluff is working to create a vibrant future for all its residents,” Washington said in her statement.

Schwarz, who spent two years interviewing Pine Bluff residents for his documentary, says he hopes more people will go into the community and renovate properties on the cheap.

And now that millions of new eyes are on the city, that may already be happening.

“I’m seeing a lot of interest in the area,” says real estate agent Marty Reed, of Century 21 United in Pine Bluff. “We are seeing investors coming to fix up properties from the West, as it is much more affordable here.”

Current state of the Pine Bluff market

But not all real estate experts agree that revitalizing Pine Bluff will be easy.

“The housing market in Pine Bluff, AR, has slowed over the past five months, with time on the market increasing and home prices falling each year,” says Realtor.com Senior Economic Research Analyst Hannah Jones.

The typical home in Pine Bluff spent 140 days on the market last month, which is nearly triple the 50 days homes sit on the market nationwide.

The slow pace of the Pine Bluff housing market is also reflected in the increase in the number of homes for sale.

“Inventory has built up in the market, increasing annually most months through September 2021,” says Jones. In July, there were 274 active listings on the market.

And despite the glut of low-priced fixers on the market, the median list price in Pine Bluff in July was $228,000, down 8.6% year over year.

However, “The last cold has not been eliminated [COVID-19] The rise of the pandemic era, – emphasizes Jones. “House prices were 38% higher than before the pandemic.”

Despite the city’s challenges, many believe Pine Bluff could soon follow in the footsteps of Detroit, which went from bankruptcy to a real estate boom town in just a decade.

Pine Bluff’s slogan is “The City of Progress,” and whether it does well will depend on whether enough homebuyers are willing to venture to this small town to find out. Here are some homes currently for sale at a range of prices – click on the image to see more details.