Michael L. Lahr, a regional economist and research professor at the Center for Urban Policy Research at Rutgers — The State University of New Jersey, cited several reasons why a historic designation can increase a property’s value.
Reasons include a 20 percent national income tax credit for rehabilitation projects, and the “cache effect” that a district confers on the neighborhood, he said.
Lahr studied the effect of historic districts on property values in Memphis, where he found houses within the districts appreciated 17 percent more on average than those in non-designated areas of the city.