Study finds that preserving older properties boosts housing affordability, encourages population growth, and attracts investment.

The Preservation Alliance for Greater Philadelphia has long faced a persistent narrative: that historic preservation acts as an impediment to development, reduces density, and limits the availability of housing. However, recent research has produced data that counters these assertions, showcasing the positive impacts of preservation on the city’s economy and housing landscape.

Commissioned by the Preservation Alliance, the extensive analysis reveals that safeguarding Philadelphia’s older properties not only preserves housing affordability but also promotes investment, sustains housing density, and contributes to population growth. The report highlights that approximately billion has been invested in historic rehabilitation projects throughout the city, generating thousands of jobs annually.

Executive Director Paul Steinke underscored that the timing of this research coincides with ongoing discussions about urban growth and affordability in Philadelphia. Notably, these dialogues are taking place as Mayor Cherelle L. Parker unveils her Housing Opportunities Made Easy initiative, aimed at constructing or preserving 30,000 homes. The Preservation Alliance’s intention behind the study is to substantiate the role of historic preservation within these urban development conversations.

The economic analysis conducted by PlaceEconomics, a Washington-based firm, aimed to explore the broader economic implications of preserving older properties—not solely those that are historically designated. This research comes amid heated debates surrounding historic designations, which have prompted opposition from developers and even among some residents who argue that such regulations can hinder renovation and adaptation efforts for existing properties.

The study indicates that nearly 5% of Philadelphia’s land is within designated historic districts, a figure that has risen significantly from 2.2% since 2016 as the city has intensified its preservation efforts. Despite these designations and their potential regulatory burdens, the research suggests that preservation districts can bolster housing affordability. Notably, two-thirds of the city’s residential buildings were constructed before 1950, and these older housing units tend to be more affordable than newer constructions.

Furthermore, the report pointed out a paradox: while historic districts may benefit from high-income households, they also risk excluding low-income residents from substantial portions of the city. Nevertheless, historic district populations have experienced growth that significantly outpaces overall city growth—a trend that demonstrates their capacity to attract residents and accommodate urban development.

The preservation of historic properties thus emerges not just as a cultural imperative but as a tangible economic catalyst, fostering job creation and neighborhood vitality while contributing to demographic diversity and housing affordability. The findings reinforce the idea that historic preservation, rather than serving as a barrier, can indeed serve as a powerful engine for growth and sustainability in urban environments.

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