The Value Added Properties Of Local Historical Preservation Districts

Abstract

This paper explains what is meant by having real property or entire districts designated as historically significant. The economic and social significance of such a designation is explored. The role of a local historic preservation commission is addressed. It is shown that such an organization enhances the benefits of a historical designation by eliminating informational asymmetries. A simple economic model is developed demonstrating the valuation changes arising from the benefits of the historical designation. Difference in difference models along with hedonic regression models are explained. Empirical results from these models are surveyed. The topic of sustainability and how it increases social value is also approached.