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THE ECONOMICS OF HISTORIC PRESERVATION
AND OF HISTORIC DISTRICTS
A BIBLIOGRAPHY Plus
Numerous articles, books, scholarly studies and anecdotal evidence attest to the fact that
historic preservation and the creation and maintenance of historic districts have direct and
indirect positive impacts on the economy of communities and in the value of the homes in which
preservation is practiced. "What does historic preservation do for a local economy? Increases
the tax base, increases. loan demand, enhances property values, generates sales of goods and
services and —most importantly — creates jobs." Community, Place and the Economics of
Historic Preservation, Donovan D. Rypkema, New Jersey Preservation Awards (1966). By what
methods(s) are these economic benefits measured? The five most referred to methods are: basic
cost studies; economic impact studies; regression analysis (hedonic, travel cost and property
value studies); contingent valuation and choice modeling; and case studies. The Brookings
Institute recently analyzed the efficacy of these methods, identified each of their strengths and
weaknesses and ended up proposing a "hybrid of the most promising methods." The study,
however, left no doubt that "[d]esignating a landmark as historical typically maintains if not
boosts the value of the property, and as an economic development tool historic preservation has
proved its worth. Nearly any way the effects are measured, be they direct or indirect, historic
preservation tends to yield significant benefits to the economy." Economics and Historic
Preservation: A Guide and Review of the Literature, Randall Mason, Metropolitan Policy
Program, the Brookings Institution. See also, The Economics of Historic Preservation, A
Community Leaders Guide by Donovan D Rypkema on behalf of the National Trust for Historic
Preservation (contains one hundred "arguments" on the economic benefits of historical
preservation each backed up by cites to studies, papers, publications, speeches, or report on the
topic).
These same benefits are realized and, perhaps even to a greater extent, when preservation
takes the form of the creation of a historic district. Indeed, not a single study has been found to
show a reduction in the value of homes located within an historic district. To the contrary, these
studies show that:
• Home prices in historic districts generally increase faster than the market
as a whole;
• The extra protection provided by local historic district designation
generally leads to owners benefiting with a higher rate of return on their
investments;
• The added value of properties in historic districts strengthens the tax base
of communities;
• Tax credit and preservation grant opportunities add economic value to
commercial historic registered properties.
While the studies are too numerous to list, we have highlighted in this bibliography some
of the more significant ones should you desire to read further. We have also collected various
quotes considered notable.
QUOTES
1. "Property values in local historic districts appreciate significantly faster than the
market as a whole in the vast majority of cases ... simply put, local historic
districts enhance property values",— The Economics of National Register Listing.
2. "Local land- marking can actually boost property values by introducing certainty
into the marketplace and improving the overall economic climate, which benefits
all property owners" — The Economic Benefits of Historic Preservation.
3. Historic Preservation...: `Mrom an economic standpoint, historic preservation
creates new local jobs, spurs private and public investment, increases property
values, and enhances neighborhood and community pride." The City of El Paso,
Texas Department of Development Services.
4. Frequently Asked Questions about Local Historic Districts:
www.uga.edu /gapc /links _ doc _pdf / FAQ %20about20 %local %20 %districts pdf.
Article notes that the economic benefits of historic preservation are:
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• "Creation of local historic districts stabilizes, and
often increases residential and commercial property
values.
• Increases in property values in historic districts are
typically greater than increases in the community at
large.
• Historic building rehabilitation, which is more labor
intensive and requires greater specialization and
higher skills levels, creates more jobs and results in
more local business than does new construction.
• Heritage tourism provides substantial economic
benefits. Tourists drawn by a community's (or
region's) historic character typically stay longer and
spend more during their visit than other tourists.
• Historic rehabilitation encourages additional
neighborhood investment and produces a high
return for municipal dollars spent.
• Use of a city or town's existing, historic building
stock can support growth management policies by
increasing the availability of centrally located
housing."
5. "... [W]e looked at the cost/benefit of the tax credit. In Fiscal Year 1995 the
Department of the Interior reports that there were 529 projects representing
investment of $467,000,000. What is the cost of that program to the Federal
coffers? Well with a 20 percent tax credit, the revenue loss to the treasury is a
maximum of $93,400,000. But what is the economic benefit? Income taxes paid
by construction workers of almost $51 million; income taxes from other workers
of over $39 million; business income taxes of nearly $15 million; capital gains
taxes of over $19 million; totaling Federal economic benefits from this program
of $124, 250,000 last year significantly more than the revenue cost.
Additionally this activity created 14,000 jobs, added $348 million to local
household incomes, and will generate each year local property tax revenues of
between $7 and $11 million dollars. Independent of the social, cultural, and
aesthetic benefit historic preservation provides, the U.S. taxpayers are absolutely
getting more than their money's worth with this program. And I thought that's
what reinventing government was all about." Community, Place and the
Economics of Historic Preservation, Donovan D. Rypkema, New Jersey Historic
Preservations Awards Ceremony, April 27, 1996, Montclair, New Jersey
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6. "Historic Districts preserve memories for future generations, as well as a sense of
time and place." — Mission Hills Historic District.
7. "Environment — the greenest homes are the ones that already exist." "One third of
our landfill is construction debris from demolished older buildings." "Our
Homes: `Maintain tangible contact with the places where our identity as a nation
was established and our character as a people was shaped'." — Historic
Preservation & Historic Districts are Good for America — Richard Moe (National
Trust).
8. "...homes within historic districts sell at a premium over similar houses outside
historic districts and values outpace nearby neighborhoods — a point touted by
realty agents and preservation experts." —Los Angeles Times (Sept. 30, 2007)
Real Estate section article "Banking on the Value of History ".
9. National Park Service: U.S. Department of the Interior — Benefits of a Historic
District:
"Local districts protect the investments of owners and residents. Buyers
know that the aspects that make a particular area attractive will be protected over
a period of time."
"Local districts encourage better design. It has been shown through
comparative studies that there is a greater sense of relatedness, more innovative
use of materials, and greater pubic appeal within historic districts than in areas
without historic designations."
"Local districts help the environment. Historic district revitalization can, and
should, be part of a comprehensive environmental policy."
"The educational benefits of creating local districts are the same as those derived
from any historic preservation effort. Districts help explain the development
of a place, the source of inspiration, and technological advances."
"A local district can result in a positive economic impact from tourism.. A
historic district that is aesthetically cohesive and well promoted can be a
community's most important attraction. The retention of historic areas as a way
to attract tourist dollars makes good economic sense."
"Local districts provide social and psychological benefits. A sense of
empowerment and confidence develops when community decisions are made
through a structured participatory process rather than behind closed doors or
without public comment."
10. "The proximity of historically designated houses on the sales price of other non-
historic houses is valued using hedonic regression analysis." "The results suggest
that a house's value is increased by 3.8 percent by having a historical house
within 250 ?ft. and by 1.6 percent by having a historical home located between
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250 and 500 ?ft away. " - Estimating the Value of the Historical Designation
Externality.
11. "Preservation is no longer the sentimental saving of a beautiful old building —it is
now a broad concept involving building codes, land use planning, tax law, open
space planning, downtown revitalization —a vital tool for the conservation of
neighborhoods and cities." – Ypsilanti Historic District Fact Sheet.
12. "Property values of historic buildings and sites in communities as diverse as
Fredericksburg, Richmond, and Staunton [Virginia] significantly outperform the
appreciation rates of non - historic properties" (Virginia's Economy and Historic
Preservation: The Impact of Preservation on Jobs, Business and Community,
1995, by Donavan D. Rypkema).
13. "Galveston [Texas]: Information was obtained on sales transacted over a period
of six months in the two residential historic districts and in the nearby [non -
historic] San Jacinto /South Broadway neighborhood `to compute an average sales
price per area. These figures were compared to the results of an early 1970's
study of average sales prices. Between 1975 and 1991, prices increased by an
average 440% in the East End [historic district] and by 165% in the Silk Stocking
[historic] district. By comparison, prices in the San Jacinto neighborhood
increased over the same period by an average 80%'." (The Economic Benefits of
Preserving Community Character: A Case Study from Galveston, Texas, 1991,
by Government Finance Research Center.)
14. "Anderson [Indiana]: Over a recent period of 15 years, `the values of properties
in the study areas steadily appreciated after the creation of historic [residential]
districts'." (American Planning Association, Historic Preservation and Property
Values in Indiana, June f99 edition of the Planning Advisory Service Memo.)
15. "Indianapolis [Indiana]: `The property values in the local historic [residential]
district increased at a rate [that] ... exceeded the rate of both an adjacent, highly
similar and unregulated neighborhood and the larger area of Indianapolis within
which it sits.' Two adjacent, nearly identical historic residential neighborhoods—
Fletcher Place and Holy Rosary- Danish Church —are both listed in the National
Register. However, `since 1980, Fletcher Place has been a locally designated
historic district.' Although the value of both neighborhoods appreciated between
1982 and 1995, Fletcher Place `appreciated at a significantly greater rate'."
(APA).
ARTICLES
1. Economic Impacts of Historic Preservation in Massachusetts, Christopher C.
Skelly, on behalf of the Massachusetts Historical Commission, May, 2002.
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2. The Economic Power of Restoration: A Community Leader's Guide, Don
Rypkema, on behalf of the National Trust for Historic Preservation; 2 nd Edition
(March, 2005).
3. The Economics of Historic Preservation, Randall Mason, Brookings Institution
(2005).
4. Historic Districts are Good for Your Pocketbook, Elizabeth Morton, State
Preservation Office at the South Carolina Department of Architecture and
History.
S. Greenfield, MA Historical Commission FAQ: Is there a connection between
historic preservation and economic development? How do National Register and
Historic Districts affect property value?
6. Study Puts Dollar Value on Historic Preservation, Article from the Washington
Post dated March 14, 1992.
7. Economic Benefits of Residential Historic Districts, Los Angeles Conservancy,
1971.
8. Statewide Studies [of 21 states] on the Economic Impacts of Historic
Preservation, Advisory Council on Historic Preservation (2009)
http: / /www.achp.gov /economic - statewide.html with links to each state's research
website.
9. Planning for Historic Preservation: An Introduction to Preservation Planning,
Amy Facca, PCJ #52, Fall, 2003.
10. National Trust for Historic Preservation and its excellent collection of
Preservation books.
11. Articles on the Economic Value of Historic Districts, High Beam Research,
http: // www.highbeam.com /search.aspx ?q = articles +on +the +economic +value +of+
historic +districts
BOOKS
1. Economic Benefits of Preserving Old Buildings, by the National Trust for Historic
Preservation (1982).
2. Historic Preservation: An Introduction to its History, Principles, and Practice,
by Ted J. Ligibel, Ph.D., Irene R. Taylor, Norman Taylor AICP (1999).
3. Economic Impact of Historic District Designation: Lower Downtown Denver,
Colorado (Dollars and Sense of Historic Preservation) by Siler Hammer, George
Associates, and Bridget Hartman.
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4. Use It or Lose It (Dollars, and Sense of Historic Preservation) by Matthew Bauer
and Bridge Hartman.
5. Saving Places that Matter: A Citizen's Guide to the National Historic
Preservation Act by Thomas F. King.
6. The Economics of Historic Preservation: A ... by Donovan D. Ryp...
7. Partners in Prosperity: the Economic Benefits of Historic by Lisanne Renner and
Bridget Hartman.
8. Keeping Time: The History and Theory of Preservation in America by William J.
Murtagh.
9. The Economic Benefits of Preserving Community Character: A Case by
Government Finance Research Center and Bridget Hartman.
10. Assessing the Impact of Local Historic Districts on Property by Jo Ramsay
Leimenstoll and Bridget Hartman.
11. A Richer Heritage: Historic Preservation in the Twenty -First Century by Robert
E. (ed.) Stipe (Hardcover — June 23, 2003).
12. Historic Preservation in the USA by Karolin Frank, Patricia Petersen, H.M.
Mowat, and J. Smith
13. The Economics of Rehabilitation (Preservation Information) by Donovan D.
Rypkema.
14. Preservation Yellow Pages: The Complete Information Source for Homeowners,
Communities, and Professionals by National Trust for Historic Preservation and
Julie Zagars.
15. Historic Preservation Incentives of the 1976 Tax Reform Act: An Economic
Analysis (NBS Technical Note; 980) by Stephen F. Weber.
16. Economic Facts and Fallacies by Thomas Sowell.
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Most, if not all, of the cited articles may be obtained. on line while the published books
can be found on Amazon as well as at other national booksellers' sites. All are still in print and
are available new or, in many cases, used condition. Please contact any HDC member should
you be unable to locate any listed material.
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