It’s hard not to love historical buildings. The unique details, architectural features, and antique hardware can offer modern viewers a peek into a neighborhood’s rich history and culture. However, if not properly cared for, bygone buildings can quickly become dilapidated eyesores that some would be more than happy to see torn down.
That’s why the restoration of old buildings is so important—it not only preserves the charm of times gone by and prevents the deterioration of communities, but it can also provide numerous tax benefits, increased sustainability, and much more.
5 Benefits of Historical Building Restoration
1. Increases Property Value
One of the largest benefits of restoring a historic property is the increase in property value. A study conducted in Connecticut found that properties in “historic” districts saw an average increase in value between 4% to over 19% per year.
That’s because historically restored buildings offer a unique charm that many want to own. The increased demand, paired with the small number of available properties on the market, makes them a wise investment. You won’t just get your money back on it when you sell—you’ll likely be walking away with a profit. Historic properties tend to have a 26% higher value than other properties in an area, and they also don’t fall victim to economic downturns as hard.
2. Provides Economic Benefits
Historical restoration provides economic benefits to a neighborhood’s economy, while also helping out the buyer financially. Some examples include:
- An increase in heritage tourism : Heritage tourism involves visiting places that showcase a region’s past and present history and culture. Heritage tourists have been found to not only stay longer but also spend more money per day.
- Tax incentives: The Federal Historic Preservation Tax Incentives Program offers a 20% federal tax credit for the preservation of historic properties, while many states and local governments also offer tax credits. (In fact, Wisconsin is known for having one of the more generous programs, with an income tax credit of 25%!)
- Lower interest rates: Oftentimes, lower interest rates are available to those with plans to preserve a historic building. For example, in Green Bay, Wisconsin, the Historic Preservation Revolving Loan Fund allows people to borrow up to $10,000 at a 2% rate for restoration projects.
- Property tax freezes: In some states, if you plan to restore a historic property, they’ll freeze your taxes at the pre-renovation level for a set period. That means you can avoid paying taxes on the added value long after the project is done! (Unfortunately, Wisconsin doesn’t offer any tax freezes.)
3. Environmentally Sustainable
Restoring historic properties is significantly more environmentally friendly than building a new one. That’s because demolishing and rebuilding requires not only an enormous amount of energy but also produces a staggering amount of carbon emissions and waste.
Did you know? A building demolition creates 155 pounds of waste per square foot, while new construction averages about 3.9 pounds of waste per square foot. When combined, you’re seeing millions of tons of debris ending up in landfills each year! One study found that it would take 35 to 50 years for a newly built property to recover the carbon it emitted during construction.
As an added benefit, historic buildings are surprisingly energy efficient, despite what people may think—in fact, the U.S. Department of Energy found that commercial buildings constructed before 1920 actually use less energy per square foot than buildings from any other decade (up until 2000).
4. Preserves History
Older buildings can relay the aesthetics and cultural history of a neighborhood or city, offering people of the present day a connection to the past. These buildings are also often made with unique, valuable materials that aren’t used in today’s architecture, such as:
- Heart pine : A dense, resin-rich heartwood that’s known for its golden-red hues, strength, and tight grain. Unfortunately, because longleaf pine trees were logged almost to extinction, they’re primarily found in historic homes.
- Copper lining: In older homes, copper was used in plumbing as well as on flashings, gutters, and weatherstripping. However, due to the high cost and skilled soldering involved in installing copper lining, it’s no longer commonplace.
- Marble: Although marble is still found in some upscale modern homes, it used to be more common. High shipping costs, depleted quarries, and the need for skilled stoneworkers have led to a decline in popularity.
- Certain types of brick: Clamp-fired bricks (which involved clay dug from a nearby pit and then fired) and pressed bricks (which used a machine-press to create sharp-edged lines) are no longer produced.
- Decorative woodworking and glasswork: Details found in historic homes, such as paneled wainscoting, built-ins, and stained glass, were slowly phased out of new construction due to the cost, skilled labor, and time-intensiveness involved.
5. Supports Affordable Housing
It may seem counterintuitive, but historic restoration actually supports affordable housing. Older buildings tend to rent or sell for less because they’ve “depreciated” due to their lack of modern finishes—in fact, new homes across the U.S. are 37.5% more expensive than existing homes on average. This makes historic homes more affordable for lower-income buyers, even when you factor in restoration costs.
But just because an old building features artifacts of the past, it doesn’t mean you can’t live comfortably. Historical buildings can be inexpensively upgraded with newer technology without sacrificing the original character. This allows people of varying incomes to enjoy modern comforts while still keeping history alive.
Let Jos. Schmitt Construction Help With Your Historical Restoration
At Jos. Schmitt Construction, we understand the importance of historical restoration. By preserving old properties and breathing new life into them, we are ensuring the beauty of the building can continue to stand the test of time for future generations to cherish.
Our skilled team is knowledgeable about the intricacies of working with aged materials and can incorporate modern functionalities without sacrificing authenticity. Contact us today for more information regarding your historical restoration project. We’re here to help you preserve the past while preparing for the future.
