THE ADVERSE IMPACTS OF LOCAL HISTORIC DESIGNATION - THE CASE OF SMALLAPARTMENT BUILDINGS IN PHILADELPHIA

This paper examines the sales effects of local historic preservation. Using the hedonic framework our study shows that small historic apartm ent buildings experienced a 24% reduction in price compared to nonloca lly certified properties. Our variable for federal historic districts, however, produced statistically insignificant results. The results su ggest that historic control (as practiced in Philadelphia) is confisca tory. The study illustrates an outcome of public regulation that impin ges on private property rights.