Historic preservation and residential property values: An analysis of Texas cities

Designation of historic districts is increasingly used as a tool to revive or halt the deterioration of central-city neighbourhoods. While historic de signation is generally thought to have a positive impact on property values , evidence on this issue is mixed. One limitation of previous research is t hat it typically focuses on historic neighbourhoods in one city and thus ba ses its conclusions on a very limited sample. This study expands upon previ ous work by examining the effects of designation on property values across a larger set of cities. The study employs hedonic regression models to esti mate housing prices in historic districts and comparable neighbourhoods in nine Texas cities. Results suggest that, in most cases, historic designatio n is associated with higher property values.