ECONOMICS UNIQUENESS

128 ■ THE ECONOMICS OF UNIQUENESS
It has been seen that the heritage designation has the greatest positive impact
on real estate values when:
• Th ere is a broad community understanding and appreciation of the historic
signifi cance of the heritage structures;
• Th ere is consistent enforcement of the regulations to safeguard heritage;
• Th e “sticks” of regulation are paired with the “carrots” of incentives; and
• Th ere are clear, illustrated guidelines on what is expected of owners of historic
properties written in layman’s language.
How Does a Premium for Heritage Properties Affect
Low-Income Households?
However, acknowledging the generally positive impact of heritage designation
on property values raises another fundamental issue that must be addressed:
What is the impact of heritage designation on the low-income households?
Th is question is vital because: (1) in most of the world, the city (or town)
center holds the greatest concentration of heritage assets; and (2) particularly
in much of the developing world, city centers have become primarily
and sometimes entirely the habitat of the low-income households. So how
does heritage designation, and any subsequent rise in property value, aff ect
such households? Th is is a major concern for institutions such as the World
Bank, whose explicit corporate mission is to reduce poverty in the world. It is
legitimate, therefore, to ask: Will a heritage-based economic development or
center-city revitalization program have an adverse impact on the very people
the institution is trying to assist? A particular concern is the socioeconomic
demographic change called “gentrifi cation,” which is defi ned as “the process
of renewal and rebuilding accompanying the infl ux of middle-class or affl uent
people into deteriorating areas that oft en displaces poorer residents.” 5
It is useful to consider the typical pattern of decline that has aff ected many city
centers and older residential neighborhoods.
• First, there is a gradual departure of middle-class households and of stable
businesses that cater to them. Th e reasons for this departure are varied but
could include a family’s desire for more space or public amenities; a preference
for “new” space; changing of household patterns; or increased household
income that allows for car ownership, enabling the family to move to a suburban
or outlying area with more space and access to nature.
• As this pattern of departure accelerates, public services in the city center
begin to deteriorate and levels of maintenance of public spaces and buildings
decline.