The Economic Benefits

Dollar for dollar, historic preservation is one of the highest job–generating economic development options available. It creates construction jobs, of course. Carpenters, electricians, plumbers, sheet metal workers and painters are all required. But renovation projects also jobs for architects, engineers, attorneys, accountants, retail, finance and real estate. In fact, historic renovation creates more jobs than the same amount of new construction.

However, the economic benefit of preserving and restoring historic buildings goes far beyond the lot line of the structure itself. Revitalization efforts can create new businesses, stimulate private investment, increase tourism, increase property values, and generate community pride.

Local suppliers also benefit. From paint to door knobs to window glass, direct purchases combined with the recirculation of construction worker wages can have a significant impact on the local economy.

According to Robert Becker in Enhancing Rural Economies through Amenity Resources, “Beauty is, indeed, our money crop, and that beauty, as amenity resources, is much more than parks…and wildlife. Beauty includes old barns, thriving small towns,…fields ready for harvest. Beauty depends on the context of the rural communities where it is found.”

Many cities have found that revitalization efforts are one of the few bright spots when the rest of the local economy is in the doldrums. The reasons are many.

• Since the majority of projects are modest in scale, they are affordable when large new construction projects are not.
• Revitalization of a single building is more feasible for a property owner
• The use of local labor and local suppliers has a positive local economic impact.

Older buildings provide excellent incubator space for business of all types. The advantages are many – the acquisition price is usually far lass than for land the new construction, the amount of rehabilitation is often moderate, making the cost far less than new building, initial occupancy costs for new businesses can be low, a critical issue in the early years of operation. Finally, since older buildings tend to be centrally located, operators are close to service providers and city offices.

Historic buildings provide efficient space for new uses. In North Dakota, old schools have become bed and breakfast operations, a tractor sales plant is now a museum, a former rural hospital serves as a guest house, and a long abandoned Opera House has come to life once more.