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Report: Housing price increases not ‘Historic’

The Brooklyn Paper
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There’s no evidence housing prices rise in desirable neighborhoods just because they are officially named a historic district, a report by the Independent Budget Office found.

In 2003, an agency study revealed that home prices just outside historic districts follow similar rates of increase as homes within a historic district.

The citywide study, called “The Impacts of Historic Districts on Residential Property Values,” examined sales from 1975 through 2002. There was clear evidence that prices inside historic districts were higher than those outside historic districts, but the report found insufficient evidence to conclude that districting itself causes higher prices or greater price appreciation.

A range of factors, the report notes — including proximity to subways, yard size, square footage of the house, and neighbors’ income level — could affect the value of a home.

Plus, historic districts don’t tend to become historic districts if they are not intrinsically desirable neighborhoods.

The Landmarks Preservation Commission is studying whether to create another historic district in Carroll Gardens, something detractors say will hasten gentrification.

The report found that over the entire 1975-2002 period, historic properties in Brooklyn increased in value an average of 10.2 percent per year, while non-historic properties experienced a rate of growth of 9.0 percent per year, the report reveals.

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Reader Feedback

Jimbo from Downtown Manhattan says:
Didn't you read the Conclusion of the IBO report?

Yes, there is indeed not sufficient evidence to conclude that an historic district is a cause for increased valuation, but - every historic district appreciates in comparison to adjacent non-Historic Districts.

You don't need a weatherman to know which way the wind blows!

Read:
"CONCLUSION
IBO found clear evidence that after controlling for property and
neighborhood characteristics, market values of properties in
historic districts were higher than those outside historic districts
for every year in our study. Although the results for price
appreciation during particular sub-periods are mixed, for the
entire 1975 through 2002 period properties in historic districts
increased in price at a slightly greater rate than properties not in
districts. Finally, there is not sufficient evidence to conclude that
districting itself causes higher prices or greater price appreciation."
July 19, 2010, 5:02 pm

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