Article

The Journal of Real Estate Finance and Economics

, Volume 8, Issue 3, pp 225-234

First online:

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

  • Paul K. AsabereAffiliated withSchool of Business and Management, Temple University
  • , Forrest E. HuffmanAffiliated withSchool of Business and Management, Temple University
  • , Seyed MehdianAffiliated withThe Ohio State University

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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 impacts local designation historic preservation public choice