Time and Value

July 23, 2021 Blog, Economics, House Museums, House Museums Comments (0) 87

I recently recovered my old coin collection from my parents’ house and it got me thinking about time and value. There is a natural tendency to assume that older things have greater value, but any economic history can disprove that pretty quickly. The value of things fluctuates greatly over time, but we tend to think values go up over time.

Not true.

During my teaching career, I remember having a hard time – before 2008 – explaining to students that real estate values can go down. No one at that time had ever seen that, but as a historian, I had seen it 150 years earlier.

This was the example I used – cost $10,000 to build in 1863 and was worth less than half that 50 years later. Allen House, Cape May, New Jersey, photographed 1996.

I thought of this when someone posted on an historic preservation forum posted about having to deal with all of these people trying to donate pianos. We get a lot of those here as well, And I actually personally took a piano off someone’s hands in 2006 or 7, only to ditch it a decade later. We think that old things have value, but the fact that so many people are trying to give them away…means they don’t have value. People are trying to give them away.

It was a Schultz, made in Chicago.

I love old stuff, but that does not mean it has monetary value. I once had a woman become fairly rude when I explained that we were not going to accept a particular piece of furniture which she intended to have us display in one of our house museums. Her bold and presumptuous intention was met with a realistic collections and donation policy. Now, you might say “But that is where something like this has value! In a house museum!”

Steves Homestead, 1876. Open weekends 10-3, $10 per person. Fully furnished, no room for more.

Yes, it has educational value there. But its economic value is likely a negative number. Let’s do the math. There are 10,000 Victorian homes around here of which exactly four are museums. That creates a market demand for 4 old pianos, maybe 5. Let’s say that 4,000 of those homes had pianos at one time. Basically we have 3,995 extra pianos, and let’s say, generously, that 500 of them are restored and tuned and used regularly. So now we have 3,495 old pianos and supply and demand says their value is diddley plus squat plus sweet FA, as the English would say.

That’s not even getting into the dismal economics (is that redundant?) of the house museums themselves, which require a pretty massive subsidy to survive as what they are. Your museum admission generally pays about 20% of the cost of keeping those houses. So who is paying the four-fifths and is it worth it to them?

Like many late 19th century houses near downtown, this is now an office. Wanna buy it?

Used, rehabbed houses are not the problem that house museums are. They have use value as well as historic value and they exist in a market where they retain value – because they are used.

But let’s get back to my coin collection. I’m sure Mom was glad to have it gone, and it can’t have much value. It reminded me of a discussion we had at Vogt Auctions in 2019 about how certain items – china, silver service, and probably pianos – no longer have monetary value because demand is gone. They had several experts letting people know that many of their treasured collections were not going to be wanted or kept by their descendants.

Read ’em and weep.

That does not mean there are not valuable things – they are just different than the things that were valuable 20 years ago. Mid-century Modern furniture is at a premium. Victorian furniture is on clearance.

It was already on sale when someone bought it 30 years ago and installed it in a house museum as if it belonged.

Young’uns pay for vinyl, but I’m not sure about those cassette tapes.

It is kinda like fashion – some very strange 70s and Victorian stuff is back in vogue now, like baby doll dresses. Meanwhile I am trying to see if I can skate through a whole decade without acquiring pointy brown shoes. I know, don’t say it – it is illegal and I am in big trouble.

Quads in the days when only hockey players had in-line skates.

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Pillars of Value

March 27, 2019 Blog, Economics, Historic Districts, Sustainability, Texas Comments (0) 1097

Why saving buildings makes more dollars and sense

1310 W. Commerce, built c. 1899 for Toby Barnes

Here is a very intact Victorian home in San Antonio of the typical Queen Anne type: L-shaped plan with front facing gable, decorative balusters, posts and porch trim. It even has decorative brackets with drop pendants that survive on the corner.

1306 W. Commerce, built c. 1909 for Charles Willard

Next door we have this house. It is boarded up and a temporary fence was added three weeks ago, but this Queen Anne retains a lot of integrity, from every one of its four Doric order porch columns to original wood siding and decorative shingles in the protruding gables. The house volume is unchanged since 1912.

1302 W. Commerce, built c. 1899 for Henry Gill

Next door, also behind the fence, this Folk Victorian gem has a double-munched standing seam metal roof, original siding and original shingles in the gables. It is also boarded up, so we don’t know how many original doors and windows survive, but in my experience, there will be several if not all.

SOOOOOO……. the owner proposed to demolish these three.

I have seen buildings in WAY worse shape get saved.

In fact, one that was on the demolition list when I started at the San Antonio Conservation Society three years ago recently came up in our house hunting.

Needs to be demolished 2016. Today it is yours for $300k here.

The owner of the three Commerce houses has a business a block away where he rents, so he bought these “just in case.”

Perfect! Move your offices in there and ditch the landlord!

Um, so then the owner’s representative said they tried renting them but they were having too much trouble. But then the druggies and thugs started hanging out and breaking in, so they need to be demolished.

Because when you demolish buildings, those problems go away?

Um, no.

Then the owner’s rep said he wants to build and apartment building here but has no plans and no timeline.

“There is plenty of room to put in his office AND add an apartment building,” I said. This is not an EITHER/OR.

And then there is money. You rehab these as houses, you can get the city tax incentives. You rehab them as National Register landmarks (that still needs to be done) and you can get a 20% investment tax credit. And a 25% state tax credit. They would totally qualify based on their history, architecture and condition. 45% of your rehab costs paid for.

Since the fence went up three weeks ago the squatters and scrabblers have stayed away. We can only hope the owner listens to reason. Or money. Or the neighbors. Or takes a look at Zillow and sees what has happened to other buildings that someone once thought should be demolished.

Because they couldn’t think of anything else.

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Main Street and Community Preservation

February 13, 2016 Economics, Historic Districts, Sustainability Comments (0) 1302

This coming week I will be lecturing about Main Street, a National Trust for Historic Preservation initiative that began in the 1970s as a way to help preserve historic downtowns throughout America in communities of every size.  This was in the era when suburban shopping malls had become the centerpiece of American life, drawing attention and dollars away from the smaller shops and services of the old downtowns. Continue Reading

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Historic Districts, Economics and Misconceptions

January 30, 2016 Blog, Economics, Historic Districts Comments (6) 1406

Everybody loves them some locktender’s houses

One of the interesting facts about the heritage conservation field is that it does not track neatly with political persuasions.  My first day of work in 1983 saw the legislation creating the first national heritage area co-sponsored by every single member of the Illinois Congressional delegation, bar none.  Imagine. Continue Reading

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Path to the Future

October 20, 2015 Economics Comments (1) 1153

This Friday I will deliver a keynote address titled “Path To The Future” at the National Trust for Canada conference in Calgary.  The conference is titled “Heritage Energized” and the setting is the boomtown West, the kind of place that easily disregards the past in a rush toward the new.

Or is that just a stereotype?  It is hard to find a city in North America or Europe that has not seen an economic “boom” from its historic buildings, especially if those buildings are conserved in enough concentration to spark revitalization.  From Denver’s LoDo and Seattle’s Pioneer Square to Manhattan’s SoHo and Chicago’s Printers’ Row, it seems every town has an historic district that has turned into an economic engine. Continue Reading

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Transforming Heritage Philanthropy

May 13, 2015 Economics, House Museums, Sustainability Comments (0) 1438

President Lincoln’s Cottage, Washington DC

Last week in this blog I presented some concepts on how we can create a more democratic, diverse and inclusive heritage conservation in the United States, largely by applying the lessons of international heritage conservation over the last twenty years, notably the Burra Charter.  Preservation is a process, not a set of rules. Continue Reading

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County Hospital

March 3, 2010 Chicago Buildings, Economics, Sustainability, Vision and Style Comments (0) 1197

In Chicago today the news is the unanimous decision of the Cook County Board to rehabilitate the historic Cook County Hospital Building (1914, Paul C. Gephardt) as medical offices. Seven years ago the building was to be demolished after the new John Stroger Hospital replaced it, but Landmarks Illinois and Preservation Chicago and others were able to find enough County Board allies to prevent demolition, and the unanimous action yesterday illustrates the shift. The project also ably illustrates several intriguing aspects of rehabilitating historic buildings. Continue Reading

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Preservation as the road to recovery

December 18, 2009 Economics, Sustainability Comments (0) 919

One of the gratifying things about being in the historic preservation/heritage conservation field is that it is future-oriented. Usually the position preservationists take – which may seem radical at the time – becomes the mainstream position later. So all those blogs of mine earlier this year about preservation as the road to economic recovery? Here is it from the AIA today:

http://info.aia.org/aiarchitect/thisweek09/1218/1218rc_historicpreservation.cfm

“Embracing the Economics of Historic Preservation: Reusing and renovating already-constructed buildings can lead the way out of this
recession”

Thanks to Joan Pomaranc at AIAChicago for forwarding this!

 

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Owning in an historic district

December 3, 2009 Economics, Historic Districts Comments (6) 1398

I own a house in a historic district and last year I blogged about how thankful I was for that fact. Real estate is an asset whose value is largely external – it comes from its location, which is to say, its surrounding buildings and environment. Because my house is in a historic district, its value is assured. Economic studies for over 40 years have confirmed this fact in communities across the United States.

If you look at the history of historic districts – which I did in my dissertation – you find that the first modern historic districts emerged in the 1950s in communities that were concerned about drastic changes to their environment and thus the value of their homes. Urban renewal was one threat, which proposed outright demolition. The other threat was posed by postwar zoning ordinances, which dramatically increased density and thus owners of brownstones or single-family homes faced the prospect of massive highrises next door.

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Eco-nomics

November 22, 2009 Economics, Sustainability Comments (0) 953

Y’all should be members of Preservation Forum, because then you get Preservation Forum magazine (go to www.preservationnation.org) which has the latest and greatest articles on preservation as a movement and a science.

We are used to thinking of preservation as a movement, an advocacy position, and indeed historically preservation was an odd position to take in the postwar world of “new is better.” Preservation was not only an advocacy position, it was a David-and-Goliath (or Don Quixote-and-Windmill) proposition in the era of urban renewal and even today preservationists can seem pretty powerless – witness the thoughtless and willful destruction of the Michael Reese Hospital campus in Chicago right now.

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