The Impact of Historic Preservation in Buffalo
By Ben Rosiek
All Images Courtesy Preservation Buffalo Niagara
A row of beautiful 19th century homes at the intersection of Allen and Park streets in the Allentown Local Historic District.
Most of us get involved in historic preservation because we care about the places that have shaped us. We love the quality of life in established neighborhoods, the history and beauty of old buildings and the diversity of styles and character that comes when places are built slowly over long periods of time.
Beyond mere beauty, however, historic preservation as a discipline and public policy also has real economic consequences for cities and communities, but those precise consequences are not always obvious. So last year, Preservation Buffalo Niagara and the Lipsey Architecture Center Buffalo hired the world-renowned economists at PlaceEconomics to do a deep dive into the legacy and impact of historic preservation in Buffalo. While we hoped the results would be generally favorable, we were startled to see the outsized and extremely positive outcomes of investing in preservation. And since their report covered only the City of Buffalo, it would seem logical to infer that the results would be even more positive were we to look across the entire region.
While many people associate preservation with monumental projects, Buffalo’s historic neighborhoods offer some of the most profound and interesting results, from both an economic standpoint and in terms of quality of life.
First, perhaps the most unexpected result: while Buffalo has long been recognized as one of the most segregated cities in the United States, an issue that is currently at the forefront of many people’s minds, our local historic districts are among the most integrated places in the city. Thirty percent of Buffalo’s white residents and 34 percent of its Black residents live in extremely segregated neighborhoods, defined as areas where at least 80 percent of the population is the same race. In local historic districts, however, these numbers drop to 17 percent for white residents and 22 percent for Black residents. This is also reflected in integrated neighborhoods, where less than 60 percent of residents belong to any one race. Eighteen percent of white residents and 11 percent of Black residents live in integrated neighborhoods, whereas 23 percent of white residents and 21 percent of Black residents live in local historic districts that meet the criteria to be considered integrated neighborhoods.
Preservationists are sometimes accused of being anti-density or anti-growth. In Buffalo, however, the PlaceEconomics data shows that local historic districts, which have the most regulation and development controls, are actually much more densely populated than other parts of the city. These areas have also seen much more net growth. Buffalo has a population density average of 11,000 people per square mile, but in the local historic districts, the average is closer to 13,000. In the last 10 years, overall growth in housing units has been about two percent for Buffalo as a whole, while the local historic districts have seen a whopping nine percent growth. These districts only account for four percent of residential parcels, yet they account for 30 percent of Buffalo’s total housing unit growth. In terms of population, Buffalo as a whole grew by about seven percent while the rate was higher in local historic districts at 11 percent.
Local historic districts also tend to have the highest property values in the city, providing opportunities for creating generational wealth through property ownership. While the average residential property in Buffalo has a value of $55.08 per square foot, those located within local historic districts have an average value of $71.03 per square foot. These numbers come in even higher when a district is listed on the National Register, rather than simply holding a local designation. In such districts, the average rises to $100.63 per square foot. Buffalo’s recent revaluation generally showed an increase in property values across the board from 2017 to 2022, but home values outside local historic districts only increased by 65 percent, whereas homes within local historic districts increased in value by over 100 percent.
Though all this growth may seem positive, one frequently leveled concern is that living in a local historic district is too expensive. In general, Buffalo residents tend to be categorized as “cost-burdened” by housing. Cost-burdened means that more than 30 percent of household income goes toward housing expense. In the case of severely cost-burdened households, this number rises to 50 percent. It can be argued, however, that these statistics are less a function of the cost of maintaining homes and more reflective of the very low incomes in the city, as income levels in Buffalo are well behind statewide and national averages. That said, statistics related to these categories suggest a near parity between those living in local historic districts and their counterparts outside of such districts. Nineteen percent of those who own homes in local historic districts are recorded as being cost-burdened or severely cost-burdened, with only 18 percent of those who own homes outside the local historic districts being categorized as cost-burdened or severely cost-burdened. When it comes to renting in these areas, local historic districts fare a little better. About 65 percent of owned units in local historic districts have monthly owner costs that are lower than those living outside the local historic districts. Renters are also generally less cost-burdened in local historic districts than those outside the local historic districts.
While the focus, thus far, has been mainly on the impacts of preservation on neighborhoods, other preservation projects also have a significant impact on our local economy. Visitors to Buffalo who are classified as primary heritage visitors, meaning the main purpose of their trip is to visit historic sites and museums, contribute 35 percent of the $1,900,000 tourism economy in Buffalo. This is in spite of the fact that such individuals make up only 14 percent of the total visitors to the region. Primary heritage visitors tend to stay longer and spend more money than other types of visitors. Secondary heritage visitors, who come primarily for another purpose but visit heritage sites while they are here, make up another 25 percent of visitors to Buffalo. When one factors in the economic impact of this second group, the numbers grow even more. Taken together, these two categories are responsible for an astounding $658,978,462 to our local economy every year! Investment geared toward heritage visitors pays off more than that aimed any other type of visitor to the region.
Buffalo is known, world-wide, for its historic architecture. Successful preservation projects like the Guaranty Building (left) and the Hotel Lafayette (right) pay dividends when it comes to attracting primary and secondary heritage visitors.
The PlaceEconomics report also goes on to detail job impacts related to historic preservation, commercial district growth and overall health and the historic tax credit program. While the results in these areas are too details for this brief summary, all were similarly positive regarding the impact of preservation on Buffalo and Western New York. Those interested in examining all the data in greater depth are encouraged to download the full report here: www.preservation buffaloniagara.org/everyones-heritage.
Preservation Buffalo Niagara would like to sincerely thank our funders for the opportunity to put a quantitative face on what we all knew in our hearts was true – that preservation is a key driver for a stronger, prosperous and more equitable future for Buffalo. This work was made possible with funding from the Baird Foundation, the John R. Oishei Foundation, New York State Senator Sean Ryan, and Erik Stenclik and Steven Deitz.
Author's Bio
Ben Rosiek serves as communications coordinator for Preservation Buffalo Niagara.
