1. Presentation to the Building Community Preservation is Place-Making Statewide Historic Preservation Conference June 14, 2013 Eric Thompson and David Rosenbaum Bureau of Business Research and Department of Economics UNL College of Business Administration www.cba.unl.edu

2.  Would historic designation be expected to increase or decrease property values?  Results for selected Nebraska neighborhoods  Results for Lincoln with repeat sales model CBA Bureau of Business Research 2

3.  The expected influence is uncertain  There are reasons to expect historic designation would increase property values  And there are other reasons to expect that historic designation would decrease property values CBA Bureau of Business Research 3

4.  Reasons that historic designation would be expected to increase property values ◦ Provides “insurance” of future neighborhood quality ◦ “Cachet” or prestige CBA Bureau of Business Research 4

5.  Reasons that historic designation would be expected to decrease property values ◦ Restrictions on alterations ◦ Restrictions on conversions CBA Bureau of Business Research 5

6.  Focus on research conducted for the Nebraska State Historical Society ◦ Focus on the impact of Neighborhood Designation on the value of individual properties ◦ Change in Property Values 2003-2006 ◦ Compared growth in value of properties in historic designated neighborhoods with properties in control neighborhoods ◦ Controlled for characteristics of homes CBA Bureau of Business Research 6

7. Historic NeighborhoodImpact of Values Lincoln Chas CreightonNot Significant Elm ParkNot Significant EverettNot Significant Franklin HeightsNot Significant Mt. EmeraldNot Significant Woods ParkNot Significant CBA Bureau of Business Research 7

8. Historic NeighborhoodImpact of Values Lincoln (continued) East CampusNegative HawleyPositive South BottomsPositive Omaha – Bemis ParkPositive Red Cloud – DowntownPositive CBA Bureau of Business Research 8

9.  Strong growth in property values also was observed in the Lincoln Haymarket and the Omaha Rail and Commerce District ◦ But, we lacked comparison groups to complete the analysis  Bottom Line: Results indicate that historic designation of neighborhoods is 1) unlikely to lower property values in Nebraska and 2) may in some cases raise values CBA Bureau of Business Research 9

10.  Published paper included repeat sales model ◦ Model focused on sales prices for properties that were sold more than once  This approach better controls for characteristics of property  Combined results for all 9 Lincoln designated neighborhoods CBA Bureau of Business Research 10

11.  Results from estimating the repeat sales model…. ◦ No Significant impact of historic designation on property values in the 9 Lincoln neighborhoods  Results of the repeat sales model reinforce part of the earlier “Bottom Line”…. ◦ Historic designation of neighborhoods does not lower property values CBA Bureau of Business Research 11