The Impact of Historic District Designation on Property Values: An Empirical Study

Abstract

It is often thought that historic preservation and economic interests are competing values. This case study of a large Chicago neighborhood provides evidence that National Historic District designation was beneficial to properties in the district. Substantial external benefits were also found. The designation of two smaller areas within the study area as Chicago Historic Districts had a negative effect on property values, however, indicating that the impact depends on the restrictions imposed by preservation measures.

Housing Price Differences Under the Development of New Towns: Using Taiwan as an Example

“…Song asserts that small-scale business activities in residential areas can boost housing prices. Old Sanxia is a historic district characterized by historical buildings and relics; however, the value of the area is declined because of the restrictions on land use and development codes (Schaeffer and Millerick, 1991). In the present study, housing prices are significantly higher in business districts than in historic districts (t = 19.287, p = .00002); hence, H4 is supported.…”

“…suggesting the difference in land use and development codes (Schaeffer and Millerick, 1991) as the key factor. For example, increasing the condition of restrictions on a target plan can reduce the number of feasible solutions (Hill and Jones, 2011).…”

“…The value of houses located in such districts can exceed that of houses located in neighboring non-historic districts by 5% to 27% (Clark and Herrin, 1997). However, Schaeffer and Millerick (1991) contend that locating in a historic district can decrease the asset value of houses because these districts are restricted by land use and development codes. The oldest districts generally make the most desirable candidates for old urban area renewal (McMillen and McDonald, 2004).…”

“…Hence, residential expansion is a symbol of urban development (Byrne and Diamond, 2007). Relatively speaking, old urban areas (e.g., historic districts) are inevitably in decline because of restrictions on land use and limitations imposed by development codes (Schaeffer and Millerick, 1991).…”

Urban renewal after the Berlin Wall: a place-based policy evaluation

“…Finally, our results inform the program evaluation literature more 6 A related body of literature has investigated the capitalization effects of historic designation, both on designated buildings and properties near designated buildings (e.g. Asabere, Huffman, & Mehdian, 1994;Clark & Herrin, 1997;Coulson & Lahr, 2005;Coulson & Leichenko, 2004;Koster, Van Ommeren, & Rietveld, 2012;Lazrak, Nijkamp, Rietveld, & Rouwendal, 2010;Leichenko, Coulson, & Listokin, 2001;Listokin, Listokin, & Lahr, 1998;Noonan & Krupka, 2011;Schaeffer & Millerick, 1991). 7 This study complements research examining the effects of spatial density on the productivity of workers and firms (e.g.…”