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Preservation raises US property value

May 16, 2012 Leave a comment

A recent article in the Hartford Courant (Connecticut, USA) publicized two studies done by economist and historic preservationist Donovan Rypkema, studying the effects of historic district designation and property values. The first study evaluated the economic benefits of Connecticut’s historic tax credit incentive program, while the second specifically evaluated property values. The conclusion of both studies is that preservation “makes good economic sense” not only creating jobs but increasing property values. Similar results have emerged from additional studies, including one released by the Alabama State Historic Preservation Office in 2002.

The reports concluded that property values within designated historic districts rose faster than neighboring areas or metropolitan averages. The Connecticut study also noted that historic district designation did not, in any of the districts studied, reduce property values – a fact that should relieve the fears of some homeowners worried that potential restrictions may make it more challenging for them to sell their home. In reality, these studies showed that the restrictions sometimes instituted by local historic commissions are in fact the key factor in the rise in value noting, “character of the neighborhood is important, and the assurance that character will be maintained has an economic value.” Read more…

Historic preservation creates jobs

March 20, 2012 1 comment
Deutsch: Fassadenrenovierung in Chicago Englis...

Job-producing rehabilitation to a historic building in Chicago

In an HBJ post from February (6 February 2012),  Christopher Dore noted a recent report from Colorado that summarized the economic impacts of preservation on local and national economies. Reports like this have become increasingly common as many become more aware and accepting of the positive benefits of preservation. Just during the recent economic slump in the U.S. economy, similar reports have emerged out of Nebraska, Washington state, and Pennsylvania, to name a few, followed in November 2011 by a report from the Advisory Council for Historic Preservation (ACHP), an independent federal agency.

One of the conclusions that emerges from these types of studies, which is particularly relevant in the current economic climate, is that historic preservation activities creates jobs, a point consistently made by Donovan Rypkema, an economist and preservationist and one of the lead authors of the ACHP report, who generalizes that spending for new construction is split about half and half between labor and materials, while between approximately two-thirds and three-quarters of rehabilitation spending goes toward labor and the remaining to materials. This means that rehabilitation projects not only produce jobs and employ local labor, but it puts the money into the hands of those that live in the community rather than sending it outside, which is what typically happens when money is spent on materials. Additionally, small businesses are responsible for creating the vast majority of new jobs in America, and historic buildings often provide the ideal location out of which to run a new or small business carrying on the domino effect of the positive economic benefits of preservation. Read more…

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