Value of Historic Designations

In 2006, the historic designation practice came under public scrutiny when citizens and local government officials clashed over a proposal to assign H-1 zoning to the adjoining neighborhoods of Hollywood Terrace and Mount Vernon. Home owners fearing a limitation to exercise their private property rights protested the zone change, while preservation proponents championed the method as a way to save unique examples of architectural style. No argument in the debate over the recent proposed districting addressed the possible price effect H-1 could have on property values. Using a hedonic price analysis, this study reveals that for property values assessed in 2003, a historic district location added a 19% to 31% increase to the value of a residence. Age within a historic district mattered as well, with older homes benefiting from H-1 districting the most. The models considered a range of other attributes that impact a property’s worth, such as age, square footage, and amenities, in addition to the specific application of historic zoning.

http://www.martin.uky.edu/~web/programs/mpa/Capstones_2007/Vogel.pdf