The Impact of Historic Districts on Residential Property Values by NYC Independent Budget Office
April 6, 2010
IBO found clear evidence that after controlling for property and neighborhood characteristics, market value of properties in historic districts were higher than those outside historic districts for every year of our study. . . . Finally, there is not sufficient evidence to conclude that districting itself causes higher prices or greater price appreciation.
So why the greater price appreciation in historic districts if they were not caused by the districting itself? Simply because these are ‘special’ neighborhoods: close to subways, close to Manhattan, better elementary schools, better single family housing, etc. It is not because the neighborhood becomes historic that raises the price appreciation BUT rather character of the neighborhood.
