While property values appreciate faster in historic districts than outside them, there is no evidence that this causes gentrification or other displacement, despite several studies evaluating exactly this possibility. The largest of these studies found that “nothing happens” regarding demographic changes connected to historic designation. Any demographic change that occurs in the area within a decade of historic designation, the authors conclude, is unrelated to the historic designation.[4]
Historic districts offer economic and environmental benefits. Using and reusing existing buildings is a major environmental, and potentially financial, benefit in itself. Likewise, the positive effect of historic district designation on property values is well established, despite common concerns about regulations. Historic districts preserve a town or neighborhood’s historic character while providing many important benefits to their residents and to the environment.
References
[1] Mimi Morris, “The Economic Impact of Historic Resource Preservation,” California Cultural and Historical Endowment, November 2012: 13, https://resources.ca.gov/CNRALegacyFiles/docs/cche/EconomicImpact_of_HistoricResourcePreservation.pdf.
[2] PlaceEconomics, “Connecticut Local Historic Districts and Property Values,” Connecticut Trust for Historic Preservation, October 2011: 3, http://lhdct.org/documents/Property%20Values%20LHD%202011.pdf.
[3] Edward L. Glaeser, “Preservation Follies: Excessive Landmarking Threatens to Make Manhattan a Refuge for the Rich,” City-Journal, Spring 2010, https://www.city-journal.org/html/preservation-follies-13279.html.
[4] N. Edward Coulson and Robin M. Leichenko, “Historic Preservation and Neighbourhood Change,” Urban Studies 41, no. 8 (July 2004): 1587, https://buprimo.hosted.exlibrisgroup.com/permalink/f/g23ind/TN_sage_s10_1080_0042098042000227028.
Further Reading
“National Park Service Historic Preservation Economic Impact.” National Park Service. Updated January 11, 2015, https://www.nps.gov/subjects/historicpreservation/economic-impacts.htm.
Rypkema, Donovan, Caroline Cheong, and Randall Mason. “Measuring Economic Impacts of Historic Preservation: A Report to the Advisory Council on Historic Preservation.” November 2011. https://www.achp.gov/sites/default/files/guidance/2018-06/Economic%20Impacts%20v5-FINAL.pdf.
Zahirovic, Velma, and Swarn Chatterjee. “Historic Preservation and Residential Property Values: Evidence from Quantile Regression.” Urban Studies 49, no. 2 (February 2012): 369-382. https://buprimo.hosted.exlibrisgroup.com/permalink/f/g23ind/TN_sage_s10_1177_0042098011404936.