The percentage of properties in Philadelphia that are historically protected from demolition has doubled since 2016, a new report by the Preservation Alliance for Greater Philadelphia said.
The nonprofit advocacy group examined the economic impact of the city’s preservation efforts by reviewing demographic data from neighborhoods that have local historic designations, which have been handed out since 1955. Their research found that Philly’s 27 historic districts — which cover about 4.8% of the city’s land mass — are becoming more racially diverse. Collectively, they also offer a growing share of the city’s affordable housing stock compared with neighborhoods without historic designation.
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“The data provides a policy bridge between preservation and affordability, showing both goals can and must coexist,” Paul Steinke, executive director of the Preservation Alliance, said of the report. “In neighborhoods with older housing, rents and monthly owner costs are lower than the rest of the city.”
Among all city properties, the percentage with historic protection has increased from 2.2% to 4.4% since 2016, putting Philly more in line with rates found in other large U.S. cities, the report said. In total, there are 583,769 buildings, homes and landmarks that have been historically designated by the city.
The Preservation Alliance hired PlaceEconomics, a Washington-based consulting firm, to analyze how historic preservation has influenced housing affordability and diversity in protected neighborhoods. The report aims to debunk “myths” about preservation and present a case for why the city should expand protections.
“Often, the criticism of historic districts is, ‘Well, yeah, you’re keeping us from tearing down all that stuff so we can’t build 40-story condos. You’re the ones keeping us from having (population) density,'” PlaceEconomics CEO Donovan Rypkema said Wednesday during a presentation on the report. “In fact, we compared the density in historic districts in Philly to the rest of the residentially zoned area and there’s 10,000 more people per square mile in historic districts.”
More than half of homes were built before 1950
In Philadelphia, properties can receive historic designation on an individual basis or be covered by broader historic districts. The Philadelphia Historical Commission approves nominations of historic districts for reasons that may range from a neighborhood’s cultural significance to the architectural features and home designs on a given block.
The first historic district was created on Main Street in Manayunk in 1984, and two years later the city updated its preservation ordinance to formalize the process for adding new districts.
When new districts are created, they come with zoning protections that impact permitting for new construction. They also may place restrictions on modifications to buildings.
Most of the city’s historic districts are concentrated in affluent and tourism-focused areas of Center City, including those that cover Old City, Society Hill and Independence National Historical Park. Those three are also on the National Register of Historic Places. Other pockets of land and blocks throughout Philadelphia’s neighborhoods — from Chestnut Hill and Germantown to Parkside and Powelton Village — have received designations from the commission over the years to give them long-term protections.
Steinke said the new report highlights how preservation can aid Mayor Cherelle Parker’s Housing Opportunities Made Easy (HOME) initiative, an ambitious plan that calls for building, restoring and preserving 30,000 homes over the coming years.
The study found that Philadelphia’s stock of older housing — anything built before 1950 — makes up two-thirds of all residential buildings in the city. These properties account for more than half of all housing units in the city. People who live in these”older homes” have a median household income of $55,000 compared with $62,000 across the rest of Philadelphia, the report said.
“These older homes tend to be smaller (and) more affordable,” Steinke said. “And therefore, they are a major source of naturally occurring affordable housing throughout the city. Within this cohort of older housing, the report finds that median gross rents are 9% lower than the city as a whole and ownership costs are 11% lower than newer housing.”
‘Encouraged by the trend lines’
Proponents of historic districts argue that they preserve the character of neighborhoods, stabilize property values and promote tourism and sustainability. Detractors contend historic districts stifle new development through the use of prohibitive zoning that limits population density. They may also restrict the autonomy of home owners by compelling them to maintain historic standards or by blocking cosmetic and cost-effective changes to their properties.
Philadelphia’s historic districts are often associated with wealthier enclaves, but Rypkema said the demographics are “changing rapidly” in both older and newer historic districts. The Preservation Alliance believes there are parts of Philadelphia neighborhoods that may be deserving of historic designation and would benefit from the protection of affordable properties.
Sections of the city with the most pre-1950 housing, including historic districts, have gained Black residents since 2010 and now have higher rates of Black home ownership than elsewhere in Philadelphia despite an overall decline in the city’s Black population, the report found. Philadelphia’s Hispanic population also has grown at a higher rate in areas with older housing than in the rest of the city.
“I think we’re encouraged by the trend lines,” Steinke said. “I don’t know that we have — or really could have — an ideal kind of recipe for the melting pot that is Philadelphia. But to see historic districts becoming more diverse is encouraging to us because it said that people of all races and backgrounds do find historic districts appealing and therefore that adds to the case for why they should be protected and supported.”
An asset, not a liability
Preservation in Philadelphia gained momentum under former Mayors Michael Nutter and Jim Kenney, who advocated for the city to take advantage of federal and state tax credit programs that support historic restoration.
Philadelphia leads the country with nearly 300 historic preservation projects that were completed with state and federal support since 2010. The report said these projects added a net of 7,900 new housing units between 2010 and 2024, creating more than 2,500 jobs per year.
The historical commission approved nominations for several new historic districts in recent years. Washington Square West, Automobile Row in North Philly and a six-block area of Graduate Hospital, known as Black Doctors Row, are among the newer districts that have increased the city’s historic land area.
Steinke, who serves on Parker’s HOME advisory committee, wants to see the mayor continue the city’s preservation efforts. Her plan calls for just over half of the 30,000 housing units in the initiative to come through preservation efforts, while thousands more homes are slated to be built on vacant city-owned property held by the Philadelphia Land Bank.
Steinke said he’s advising the Parker administration to review the ways preservation can be expanded to promote housing affordability and equity.
“Philadelphia is an old city. By American standards, we’re one of the oldest,” Steinke said. “It is full of older buildings and full of older housing. Rather than seeing this as a liability, we would like to change that narrative so that we see it as an asset.”