Historic Preservation Has Positive Impact on Local Economy

“Laid back, quirky, artsy, funky, creative, unique.” Those are the words used to describe our city in the opening of a recent report about St. Petersburg titled, Keeping the Vibe Alive: The Impact of Historic Preservation in St. Pete. The report was commissioned by Preserve the ‘Burg and completed by PlaceEconomics, a private-sector firm that analyzes the economic impacts of historic preservation. PlaceEconomics CEO Donovan Rypkema presented the report at the Historic Preservation Expo at the St. Petersburg Museum of History of May 10.

Keeping the Vibe Alive highlights significant contributions by historic preservation to the city’s economy, identity, and community. It also reveals some of the city’s challenges, such as housing affordability amidst new development, and the risk of losing the city’s uniqueness in the wake of growth and change. Most importantly, it debunks the myth that historic preservation has a detrimental effect on the economics and vitality of the city, noting that “the findings indicate that historic preservation is essential to the vibe and character that so many associate with St. Petersburg.” 

One of the central discoveries in the report is the positive impact of historic preservation on property values. The research found that property values are greater in historic districts than the rest of the city. There is a fear that the guidelines and regulations that come with local historic designations can lead to lower property values, but the study finds that this is not true in St. Pete. In fact, when looking at the change in single-family home property values in single from 2008-2022 (significant, as this timeline includes the Great Recession that seriously affected real estate values), the study noted that “local historic districts recovered from the 2008 recession faster than the rest of the city.” 

At the heart of the report is the recognition of historic preservation as a stimulus for economic revitalization. Central Avenue is noted in the report as a prime example, with report author Rypkema calling it the “spine or the backbone of the city.” From 1st street to 31st street, 60% of the buildings were built before 1960, with the majority built during the 1920s boom and the post-war 1950s boom. A survey of a broad range of St. Pete residents throughout the city showed that nearly 80% of respondents said they visited once or twice a month; 43% said they visited the area weekly. 

Why are St. Pete inhabitants so drawn to this area? Is it the many restaurants, shops, and bars? Is it the historic architecture, the murals, and other public art? The study asked respondents what variables were important when visiting Central Avenue, and found that walkability, safety, attractiveness of the area, and many local businesses were important variables, but interestingly, 90% said that the historic character of the area was either very important or somewhat important in visiting Central; 88% said the St. Pete “vibe” of the area was very or somewhat important when visiting Central. 

Keeping the Vibe Alive also takes a deeper look at the extreme job growth on Central compared to the rest of the city, the number of locally owned businesses, as well as the large number of minority- and women-owned businesses along this strip. It also shows that occupancy rates are higher in older buildings than in newer buildings, implying that the character of older buildings is a prominent factor. 

St. Pete is a growing city filled with exciting new development, but it is no secret that scarcity of affordable housing is major issue. One of the report’s findings is that older buildings provide affordable housing throughout the city. “There are neighborhoods in St. Petersburg with a concentration of older housing and low-income households. In those neighborhoods, 60% of the households make less than the city median income, and monthly housing costs for both owners and renters are significantly lower than in the rest of the city.” While existing older homes provide housing for St. Pete inhabitants with modest incomes, most of these homes are not historically protected and are at risk of being demolished, adding to the dearth of affordable housing options. 

Keeping the Vibe Alive does not suggest that new development is not welcome in the city, however. At the preservation summit hosted by Preserve the ‘Burg, Rypkema said, “You are not making affordable housing when you are building units that rent for $3000 a month. It is not a bad thing; there is a market for $3000 apartments, but that is not the solution for affordable housing. The solution, in part, is keeping the stuff you have already.” 

According to report’s survey, the St. Pete community agrees. When asked what was important for the future of St. Pete, nearly half of the respondents had affordable housing as one of their top three choices, and the report finds that some of these housing challenges can be addressed through historic preservation as a strategy to promote equitable development.

Though Keeping the Vibe Alive found that historic preservation is “essential” to the makeup of St. Pete’s character, it also states that, “While there are 10 local historic districts, less than 1% of structures built more than 60 years ago have any regulatory protection.” That means the historic buildings like we see on Central, and many of the affordable older homes are at risk of being torn down.

So, what’s next? What does Preserve the ‘Burg do with this information? Executive Director Manny Leto discussed the importance of a report like this to fight the skepticism and criticism that dogs preservation efforts. Some assume that preservationists only want to save a building because of its history, or its architecture, and wonder if that’s a good enough reason. Keeping the Vibe Alive offers real data about how preservation benefits our city as a whole – data that can also be compared with other cities that have undergone the same or similar studies and show where St. Pete stands amongst them. 

Says Leto, “It is up to Preserve the ‘Burg, the city, and allied organizations to take this information and ask what needs to happen. The goal is to also encourage the community to look at historic preservation in a different way.” 

Rypkema agrees, saying, “The study lets people step back and make policy decisions based on evidence as opposed to emotion or conventional wisdom. Our role is presenting ammunition to local advocates so that they have a base to make their case individually to city council members, the mayor, or whoever.”

View the full report at preservetheburg.org. Watch Donovan Rypkema’s presentation at youtube.com/watch?v=2-auwkYHk1M.