Historic Preservation and Residential Property Values: Evidence from Quantile Regression

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, USA. The results support the well-established notion in urban economics literature that historic preservation has a positive impact on property values. However, appreciation of property values may displace less-affluent residents of historic districts after designation takes place. The results also show that the lower-end properties gain the most value from historic preservation. Thus, it must indeed be recognised that with increasing values comes the very real possibility that displacement of neighbourhood residents can occur. rehabilitation and adaptive reuse of historic properties, the attraction of heritage tourism visits and improvement of a neighbourhood’s character. Another benefit—and the focus for this paper—is the role that local historic preservation might assume in improving property values and the creation of possible ripple effects on the value of property in sur-rounding neighbourhoods. However, strong price capitalisation of low-priced properties after historic district designation also implies a potential for displacement of low-income households. 1