Studies on historic preservation and property values
available
on the World Wide Web as of 11/10/2003
A search of the World Wide Web under the words “historic preservation” and “property values” turned up the following studies within the first 20 of over 8,500 results (not all of the first 20 were studies). All studies found indicated that the vast majority of houses or residential districts studied increased in value.
The Florida Department of State, with
research assistance from Rutgers University and the University of
Florida Levin College of Law, put out this 2002 study.
Titled The Economic
Impacts of Preservation in Florida, it includes a chapter on
historic designation and property values.
The chapter reports that,
in 15 of 18 case studies, property in historic districts increased
more than in comparative neighborhoods.
No instance was found in which historic designation
depressed property values. This study is typical of a number of studies sponsored by
state governments wishing to report on the economic impacts of
state and local preservation programs.
http://www.law.ufl.edu/cgr/pdf/historic_report.pdf
An authoritative 1995 economic study of house
prices includes several striking findings:
homes located in two nationally and locally designated historic districts increased in price at a rate almost 25 percent faster
than did homes in the community at large. John A. Kilpatrick, a lecturer with the Center for Real
Estate and Urban Economic studies at the University of South
Carolina College of Business, coordinated the project in
cooperation with Susan McGahee and the late Nancy Meriwether of
the Historical Services Division, South Carolina Department of
Archives and History.
http://www.anaheimcolony.com/propval2.htm
A
2002 report titled The
Economic Benefits of Historic Preservation found that
residential property values in historically designated areas
increased or stayed the same as those values in nearby,
undesignated areas.
None of the case
study areas showed any decrease in property values after historic
designation. Other economic effects and benefits of preservation were also
studied. Study
partners included Clarion Associates of Colorado, a land-use and
real estate consulting firm, BBC Research & Consulting and
Place Economics of Washington, D.C.
http://www.coloradohistory-oahp.org/programareas/shf/support/2002/june.htm
A Mundy Associates LLC study of valuation
issues in historic preservation found that
residences in designated historic districts sell for 21% to 27%
more than similar residences outside the district and residences
in those districts increase in price faster than homes in the
surrounding market. Furthermore, this increase lasts a long
time, benefiting not only the owners at the time of the creation
of a historic preservation ordinance, but also subsequent owners.
http://www.mundyassoc.com/articles/historic.htm
Academic study by Robin M. Leichenko of
Rutgers University
“suggests that historic preservation generally has a positive
impact on property values and that historic designation is
associated with average property value increases ranging between 5
percent and 20 percent of the total property value.”
See page 1984 for conclusions.
http://geography.rutgers.edu/people/faculty/leichenko/leichenko_coulson_listokin2001.pdf
At
this smart growth seminar Donovan Rypkema, principal of Place
Economics argued that sensible land use policies enhance rather
than diminish property values, and that public constraints on
private property such as zoning have been central to American
political society for three centuries. Comprehensive
approaches to smart growth frequently include some form of land
use controls. Discussion of land use regulations often generates
resistance from proponents of the "property rights"
movement. Many argue that restrictions on privately owned land
have an adverse impact on property values and are alien to
American political tradition.
A more complete look at American history and available
property value research reaches different conclusions.
The talk is available through the Smart Growth Network.
http://www.smartgrowth.org/calendar/evdetails.asp?evid=3