Buyers can snap up a home for $400 in this shrinking Southern city — but there’s a catch

Homebuyers desperate for a deal might be curious to learn more about a tiny town in Arkansas where homes are selling for just over $400.

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

The city found itself thrust into the spotlight when a documentary titled “The City Left Behind: $400 Abandoned Homes in Pine Bluff” got 1.6 million views in the past three weeks on YouTube.

“There is a surplus of properties—cheap!—that are prime for restoration and redevelopment,” filmmaker 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 due largely to its lack of jobs and poor-quality schools.

3

After Schwarz’s documentary went viral, Mayor Shirley Washington responded: “We are dedicated 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 homes.”

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

A brief history of Pine Bluff

Pine Bluff used to be one of the most prosperous regions in the Deep South after World War II due to its expansive farmland. It was also the home of two successful paper mills.

3

As those industries changed, however, the city and its economy began to suffer.

Crime increased as Pine Bluff’s population decreased, and many area homes were abandoned.

“If Pine Bluff works to bring in more job opportunities, it will create a more enticing reason to move to town,” Schwarz says.

Is Pine Bluff poised for a comeback?

Many people believe the town 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 move to the community and renovate the low-priced properties.

And now that millions of new eyes are on the city, that might already be starting to happen.

“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 in to fix up properties from the West, since it’s so much more affordable here.”

The 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 down over the last five months, with time on market climbing and home prices falling annually,” says Realtor.com® senior economic research analyst Hannah Jones.

3

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

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

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

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

However, “Recent cooling has not eliminated [COVID-19] pandemic-era growth,” points out Jones. “Home prices were 38% higher than pre-pandemic.”

Despite the city’s challenges, many people believe that Pine Bluff could soon follow in the footsteps of Detroit, which went from bankrupt to a real estate boomtown in only a decade.

Pine Bluff’s slogan is “City of Progress,” and whether it makes good on that will depend on whether enough homebuyers are willing to head to this tiny town to find out. Here are some homes currently for sale at a range of prices—click on the image to see more details.