Heritage designations add to property values!

Real estate’s “article of faith” claim is that newly designated heritage properties immediately lose their market value. However, U.S. and Canadian studies suggest that properties values actually increase, or at worst remain the same. So why do some homeowners fight heritage listing and designation from being placed on their properties?

After observing recent heritage proceedings at Toronto city, a lack of information on heritage listing and designation market impacts seems to be the answer. A quick survey of local heritage web sites reveals technical and process information on heritage listing, designation and owner obligations, but nothing quantatative on market value impacts (that I could find). So fearful homeowners rely on their real estate agents for information, though inaccurate, and grow highly sceptical of the positive impacts of owning a heritage property.

Homeowners have two city committee meeting opportunities to argue against listing or designation. Their presentations are often emotional, rambling, and at times ridiculous, but most reflect underlying market value concerns. No statistics, reports or information sources are provided to the homeowner other then market value assurances that there was nothing to “worry about.” Lost on homeowners is the message that interested purchasers will pay a premium in order to live in a heritage property.

To get the “message” out heritage groups need to move away from “tree-hugging” preservation arguments to more business-like discussions. As money is limited, heritage groups need to pool their resources to pay for market value impact studies that demonstrate the positive business case for heritage preservation. Heritage preservation is good, smart business, and this “message,” unlike today, needs to be main selling point of our heritage preservation efforts.