In consultation with the Cleveland Restoration Society. Main Street Vermilion - Design Committee Vermilion Historic Design & Review Board A look at the impact of Historic Designations and Historic Districts on home values. In consultation with the Cleveland Restoration Society. Emphasis on residential property.

The question for this study of smaller cities and towns: “Q: What impact do local historic districts have on house prices in smaller communities, which typically have less active real estate markets?”

“ A: In all six (SC) towns surveyed, the impact of historic district designation appears to be positive on prices of residences within those districts.” -John Kilpatrick, study author

We know that the protection far outweighs the restrictions because “Historic district designation provides protection from negative externalities*. The economic value of this protection far outweighs the negative value of any use, maintenance or other restrictions placed by the ordinances. We know that the protection far outweighs the restrictions because the value jump is both economically and statistically significant.” -John Kilpatrick, study author

Homes in Historic Districts enjoy greater value! In Columbia (SC), house prices in local historic districts increased 26% per year faster than the market as a whole. In Beaufort (SC), houses in the locally protected historic district sold for 21% more, all other factors being equal, than similar houses not in the district. In Greenville (SC), establishing a local historic district caused prices of houses in the district to go up. House prices rose, on average, over 50% in just a few years. In six smaller towns and cities across the state (SC), local historic district status was a positive factor in determining the value of a house.

Current owners can sell their houses for higher prices Local Historic Districts create a win-win situation for both homeowners and the community: Current owners can sell their houses for higher prices or make use of their increased equity; New homeowners can protect their investments in their houses and enjoy greater price gains; and the Community strengthens its tax base. 1. This is not to suggest that local designation lowers commercial property values. However, the South Carolina studies focused on residential properties, since the majority of locally designated properties in the state are residential. 2. Ann Bennett, “The Economic Benefits of Historic Designation, Knoxville, Tennessee,” 11. Reprint no. 15 in the Dollars and Sense of Historic Preservation series published by the National Trust for Historic Preservation, Washington, DC, 1998.

Historic Preservation in Highland Park (IL) Highland Park’s commitment to historic preservation began in 1969. Highland Park has three designated Historic Districts. A local Historic Preservation Commission follows a city code in issuing a Certificate of Appropriateness (COA) to property owners in Historic Districts. The COA must be received by property owners before proceeding with projects requiring the issuance of a general building permit.

In 2006, Highland Park (IL) commissioned a study to answer a question. “Q. What is the effect of historic district designation on property values?

Highland Park (IL) “Study Summary:” The results displayed that there is a positive effect on the property value in historic districts in Highland Park. Local district designation has much greater impact on the increase of value, which makes sense as local district designation in Highland Park has more stringent regulations to how a property may be maintained. National designation had less of an effect on property value, which also makes sense as national designation has more lenient regulations and requirements.

Historic Preservation and Residential Property Values: An Analysis of Texas Cities Center for Urban Policy Research, Rutgers State University of New Jersey. 2001. The study considered the effects of historic designation on residential values in nine Texas cities. Analyzed nationally- designated as well as locally-designated historic properties .

The nine Texas cities studied varied in size. City Data Source Sample Size Average Property Value Number of historic properties in the sample Abilene Appraisal 7,620 $39,160 222 Dallas 4,920 64,838 2,200 Fort Worth 102,948 54,519 1,338 Grapevine 59 44,673 27 Laredo 338 45,396 177 Lubbock 1,922 30,471 440 Nacogdoches MLS 30 93,130 15 San Antonio 3,806 47,970 1,912 San Marcos 80 94,920 34

Most cities saw increased value for historic properties. City Number of historic properties Is historic designation significant? Change in value from historic designation historic designation for individual property Abilene 222 Yes +19.1 % + $7,500 Dallas 2,200 +4.9 % + $3,200 Fort Worth 1,338 +8.8 % + $4,800 Grapevine 27 + $8,500 Laredo 177 No --- Lubbock 440 +6.4 % + $1,950 Nacogdoches 15 +20.1 % + $18,700 San Antonio 1,912 +18.6 % + $8,900 San Marcos 34

An Analysis of Texas Cities “Study Summary” “Results suggest that historic preservation generally has a positive impact on property values and that historic designation is associated with average property value property value increases ranging between 5% and 20% of the total property value.”

An Analysis of Texas Cities “Notes” “In addition to direct benefits for property owners, higher property values also imply benefits for a city as a whole in the form of higher property tax payments.” -Note 12 Source: Historic Preservation and Residential Property Values: An Analysis of Texas Cities. 1991 - 1999.

Main Street Vermilion - Design Committee Vermilion Historic Design & Review Board STUDIES’ CONCLUSIONS: House values with Historic Designations and/or in Historic Districts generally increase more than most surrounding properties (approximately 5% - 26%). Locally-enforced codes for Historic Designated houses more effectively increase house values than National Designations. The economic value of Historic Designation far outweighs the negative value of any house use, maintenance or other restrictions placed by the ordinances. Houses in both large and small communities benefit from Historic Designations. Historic Designations strengthen community tax bases.