Investigating the Impact of Heritage Property Designation on Real Estate Value

Abstract

A common concern amongst homeowners is whether heritage designations negatively impact the sale value of residential properties. Current evidence is inconclusive, which prompted the City of Hamilton to partner with the McMaster Research Shop for this study. The purpose of our investigation was to determine the extent to which, if at all, heritage designation impacts residential property values in Hamilton. To investigate this question, we reviewed previous literature investigating the relationship between heritage designations and property values. Then, using a large dataset provided by the Realtors Association of Hamilton-Burlington and the City of Hamilton's list of heritage properties, we quantitatively modeled the relationship between heritage designation and property values in Hamilton while controlling for other variables known or theorized to influence property values.