1. 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.

2. 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?”

3. “ 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

4. 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

5. 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.

6. 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.

7. 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.

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

9. 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.

10. Historic Preservation and Residential Property Values: An Analysis of Texas Cities Center for Urban Policy Research, Rutgers State University of New Jersey
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 .

11. 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

12. 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

13. 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.”

14. 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

15. 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.