How Saving Old Homes Affects Housing Affordability in Philly

Historic Homes: More Than Just Architecture

In Philadelphia, preserving historic homes is not merely about conserving the past; it’s also a powerful lever for enhancing community affordability and fostering economic growth. As highlighted in a recent report by the Preservation Alliance of Greater Philadelphia, the percentage of properties under historic designation has doubled since 2016. These efforts demonstrate a broader movement that supports the idea that old homes, far from being detriments to urban development, can actually bolster housing options while respecting the cultural fabric of neighborhoods.

The Economic Benefits of Preservation

The Preservation Alliance’s report emphasizes the financial advantages associated with rehabilitating older buildings. According to PlaceEconomics, a firm specializing in historic preservation economics, large-scale investments in restoration projects, fueled by federal and state tax credits, have driven over $4 billion into Philadelphia’s economy. In turn, this investment has created over 2,500 jobs annually, yielding approximately $141 million in labor income and generating an average of $8 million in tax revenues each year.

Historic Districts: A Source of Affordable Housing

One of the most compelling aspects of the report is its assertion that neighborhoods with historic designations tend to offer lower median rents and housing values. Homes built before 1950 make up a significant portion of the city’s housing stock, comprising 67% of all residential buildings. As such, these older homes account for a vital source of naturally occurring affordable housing. In designated historic districts, median gross rents are reported to be 9% lower than in the rest of Philadelphia, making them increasingly attractive to families seeking budget-conscious living options.

Addressing Myths About Preservation's Impact on Development

Despite the wealth of evidence supporting the benefits of historic preservation, misconceptions linger. Critics often argue that such designations hinder development and restrict housing supply. However, the report challenges these beliefs by presenting data that illustrates a more nuanced reality. As Paul Steinke, the executive director of the Preservation Alliance, points out, "historic preservation is not just a niche concern. It’s a housing equity and economic strategy for our city." This perspective aligns with findings from other cities like Chicago, where historic districts have become increasingly integrated into urban planning without sacrificing the opportunity for development.

A Community-Centric Approach to Preservation

The implications of this report reach beyond the architectural realm, touching on social dynamics and community representation. The data highlights that historic designation efforts have become more inclusive, extending further into North and West Philadelphia where underrepresented histories are now being acknowledged. As neighborhoods change, preservation initiatives provide a platform for diverse voices, enriching the urban narrative while maintaining affordable options for residents.

As market pressures continue to mount, it's essential for top wage earners and city officials to recognize the role preservation plays in crafting a well-rounded housing strategy. The Preservation Alliance’s findings should encourage local policymakers to integrate historic preservation into broader housing initiatives to support long-term community stability.