One of the most frequently asked questions we’ve received on Historic Designation regards the economic impact and benefits of preservation. Fortunately, there are a number of academic studies detailing the impact of historic designation and preservation. For those who want some quick facts, here are some data points courtesy of The Advisory Council on Historic Preservation (ACHP):
- Historic preservation activities generate more than $1.4 billion of economic activity in Texas each year.
- Rehabilitation of historic properties in Georgia during a five-year period created 7,550 jobs and $201 million in earnings.
- Each dollar of Maryland’s historic preservation tax credit leverages $6.70 of economic activity within that State.
- In one year, direct and indirect expenditures by heritage tourists in Colorado reached $3.1 billion.
Virginia’s Economy and Historic Preservation: The Impact of Preservation on Jobs, Business, and Community (1995) [nominal fee for access] has a number of specific Virginia examples, including these:
- From Shockoe Slip in Richmond: “[B]etween 1980 and 1990, the assessment total made a quantum leap upward by 245 percent, from $23,135,886 to $56,761,000. Citywide the aggregate value of real estate increased by 8.9 percent.” The Importance of Historic Preservation in Downtown Richmond: Shockoe Slip Area, A Case Study.
- The per square footage value of the renovated properties is $21 a square foot greater than that of new construction.” The Importance of Historic Preservation in Downtown Richmond: Franklin Street, A Case Study.
In addition to economic benefits, there are federal and state tax credits available to property owners for private investment in preservation or restoration.