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Paper eres2011_34:
Historic Preservation and Residential Property Values: Evidence From Quantile Regression

id eres2011_34
authors Zahirovic-Herbert, Velma; Chatterjee, Swarn
year 2011
title Historic Preservation and Residential Property Values: Evidence From Quantile Regression
source 18th Annual European Real Estate Society Conference in Eindhoven, the Netherlands
summary Historic designation is increasingly used as a means to achieve both preservation and community economic development. This study considered the effects of historic designation on residential property values in Baton Rouge, Louisiana. Our results support the well-established notion in urban economics literature that historic preservation generally has a positive impact on property values and, in particular, that the historic designation is associated with average property value increases ranging between 5% and 8% of mean house value. Furthermore, designation of a neighborhood as historic has positive spillover effects on property values for nearby residential properties. This finding supports using historic preservation and the designation of historic districts and landmarks as a policy tool for elected and community leaders seeking to find ways to protect and enhance residential property values in central cities. However, appreciation of property values may displace less-affluent residents of historic districts after designation takes place. It must indeed be recognized that with increasing values comes the very real possibility that displacement of neighborhood residents can occur. Our results also show that the lower-end properties gain the most value from historic preservation. Thus historic preservation policies should be accompanied by efforts to retain affordable housing.
keywords property values and historic districts
series ERES:conference
email vherbert@uga.edu
content file.ppt (1,250,304 bytes)
discussion No discussions. Post discussion ...
ratings
session G4: Urban Development & Property Value
last changed 2011/06/23 16:27
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