Archive

Posts Tagged ‘economic benefit’

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…

Heritage tourism increasing in the Navajo Nation

A photograph taken of Monument Valley, Navajo ...

Monument Valley, Navajo Nation.

Heritage tourism is on the increase, states a Native American Times article (3 April 2012) by Susan Montoya Bryan. Based on a report commissioned by the Navajo Nation from Northern Arizona University, data show that some 600,000 visitors made nearly $113 million in direct purchases on the reservation in 2011. That represents a 32 percent increase in tourism spending since 2002.

Surprisingly, this increase occured over the same period when U.S. gasoline prices rose from approximately $1.80 to $3.90 a gallon. The Navajo Nation, a soverign nation since 1868, is the largest Native American reservation in the United States. It covers 27,000 square miles in Arizona, New Mexico, and Utah. Traveling to the Nation by automobile, and there are few other options for visitors, is a significant trip from almost anywhere. However, the article states that U.S. visitors to the Nation were actually down in the period since 2002. It was non-U.S. visitors, primarily from Germany and France, that were up more than 11 percent and responsible for the increase.

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…

%d bloggers like this: