Prosperity
Preservation is an economic development tool
The argument for historic preservation as economic development is a compelling one. Although the magnitude of the economic impact of historic preservation is largely specific to the locality, there are consistent, reoccurring patterns illustrating that preservation stimulates economic activity and preserves property values.
Well-preserved historic business districts have character and vitality. Lititz, PA was named a Dozen Distinctive Destination in 2008 for their commitment to preservation-based revitalization.
Credit: Ron Reedy
1. Dollar for dollar, historic preservation is one of the highest job-generating economic development options available. For example, in Pennsylvania, $1 million in rehab creates 12 more jobs than processing $1 million in steel.
2. Job creation spurred by historic preservation begins in construction and the trades. For example, in Philadelphia, PA, there were 356 historic rehabilitation tax credit projects from 1978 to 1985, employing 8,640 construction workers.
3. Job creation extends beyond construction. Research in Rhode Island showed that of in-state jobs, 129 are construction workers, 51 are for services provided by engineers, architects, attorneys, accountants, preservationists, etc.
4. Historic preservation creates more jobs than the same amount of new construction. Donovan Rypkema's research found that the process of historic preservation is labor intensive. Generally speaking, between 60 and 70% of the total costs goes toward labor, which has practical implications for the local economy. Carpenters, electricians, plumbers, sheet metal workers, painters, etc are nearly always hired locally.
5. Historic preservation has a multiplier effect. The effects of preservation reach far beyond any single rehabilitation project. The Advisory Council on Historic Preservation (ACHP) identifies community benefits in terms of the following: new businesses formed, private investment stimulated, tourism stimulated, increased property values, enhanced quality of life, new jobs created, compatible land-use patterns, increased property and sales taxes, and pockets of deterioration diluted.
6. Historic preservation provides a greater benefit to local suppliers. In California for example, money invested in rehabilitation will increase local earnings in wholesaling 10% more and retailing 43% more than the same amount spent on new construction.
7. Historic rehabilitation is often a counter-cyclical activity that helps stabilizes the local economy during an economic downturn. The vast majority of preservation projects are modest in scale, thus they are affordable when large new projects are not. Since local labor and suppliers get a much larger share of the total expenditure than they do for new construction projects, dollar for dollar, preservation will have a more positive local economic impact.
Urban Outfitters rehabilitated large areas of the historic Philadelphia Navy Yard for use as their corporate headquarters.
Credit: Urban Outfitters
To read more about the economic benefits of historic preservation, download the Economic Benefits of Historic Preservation Tip Sheet. The Tip Sheet includes links to various studies conducted by states and other entities on the specific impact that preservation has had on their states' economies.
Community Revitalization
Historic Preservation tools can offer powerful strategies for bringing new life to underutilized buildings and places. Some of these best practices have been collected and compiled in a publication by the Northeast Office, Rebuilding Communities. The toolkit highlights real-world examples where public policy, advocacy and marketing, design, partnerships, adaptive reuse, and financing have been used to help put vacant and abandoned properties back into productive use. A copy of the toolkit is available to download from our website at this Rebuilding Communities Toolkit.
Find a host of resources and information at the National Main Street Center, a National Trust for Historic Preservation program and leader in helping communities maintain the vitality of their historic business districts.
Preservation Trades and Job Creation
Want to know more about the preservation trades and skilled job creation? The Preservation Trades Network will get you started. The Preservation Trades Network (PTN) is a 501(c)3 non-profit membership organization founded to provide education, networking and outreach for the traditional building trades. PTN was established on the principle that conservation of the built environment is fundamentally dependent on the work of skilled people in all of the traditional building trades who preserve, maintain and restore historic buildings, and build architectural heritage for the future.
