The Journal of Real Estate Finance and Economics

, Volume 8, Issue 3, pp 225–234

The adverse impacts of local historic designation: The case of small apartment buildings in Philadelphia

Authors

  • Paul K. Asabere
    • School of Business and ManagementTemple University
  • Forrest E. Huffman
    • School of Business and ManagementTemple University
  • Seyed Mehdian
    • The Ohio State University
Article

DOI: 10.1007/BF01096993

Cite this article as:
Asabere, P.K., Huffman, F.E. & Mehdian, S. J Real Estate Finan Econ (1994) 8: 225. doi:10.1007/BF01096993

Abstract

This paper examines the sales effects of local historic preservation. Using the hedonic framework our study shows that small historic apartment buildings experienced a 24% reduction in price compared to nonlocally certified properties. Our variable for federal historic districts, however, produced statistically insignificant results. The results suggest that historic control (as practiced in Philadelphia) is confiscatory. The study illustrates an outcome of public regulation that impinges on private property rights.

Key words

adverse impactslocal designationhistoric preservationpublic choice

Copyright information

© Kluwer Academic Publishers 1994