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The Impact of Historic District Designation on Property Values: An Empirical Study

It is often thought that historic preservation and economic interests are competing values. This case study of a large Chicago neighborhood provides evidence that National Historic District designation was beneficial to properties in the district. Substantial external benefits were also found. The designation of two smaller areas within the study area as Chicago Historic Districts had a negative effect on property values, however, indicating that the impact depends on the restrictions imposed by preservation measures.