Impact of Preservation
Utah is widely recognized for having one of the nation's most robust and stable economies. This is thanks to several key factors: a well-educated workforce, economic diversity, fiscally responsible state and local governments, and consistent contributions from the agriculture, natural resources, high-tech, and tourism sectors. Utahns take great pride in our state’s thriving economy and the rich heritage resources scattered across all 29 counties. Landmarks like Temple Square in Salt Lake City, the bustling business district on 25th Street in Ogden, the Stagecoach Inn at Camp Floyd, and the Jens Nielson House in Bluff may seem vastly different—some are owned by institutions, others by private entities or government, and they vary in scale from grand to modest. Yet, they all share a common thread: each serves as a physical embodiment of Utah's history. Though "economy" and "historic preservation" are not often paired, Utah's citizens have long been dedicated stewards of historic buildings, valuing them for their cultural, aesthetic, social, symbolic, religious, and educational significance. And rightly so—these values are immeasurable. However, some aspects of historic preservation are quantifiable, particularly its economic benefits, including jobs and income, sustainability, downtown revitalization, heritage tourism, property values, and fiscal responsibility.
Jobs and Income
Across the state, citizens, governments, and institutions are investing in the future of Utah’s historic buildings through ongoing maintenance and rehabilitation efforts. While measuring this economic activity precisely is challenging, a significant portion is trackable, mainly through Federal and State Historic Preservation Tax Credit Programs. These programs have facilitated the investment of hundreds of millions of dollars in historic buildings. The Federal Tax Credit offers a 20% credit on the amount invested in rehabilitating historic buildings for commercial and residential use. The Utah Tax Credit also provides a 20% credit but can only be used for individual homes and residential rental properties. Both programs must adhere to specific rehabilitation standards, ensuring the preservation work meets high-quality criteria. One significant benefit of the Federal Tax Credit is that it allows a portion of the invested funds to remain in Utah. Although the total amount invested through these tax credits is substantial, it represents only a fraction of the historic preservation work happening in Utah. Investments made by state and local governments, institutions, and many individual property owners who either cannot or choose not to use the tax credits are not accounted for. Despite this, the economic impact of these tax credit investments is impressive. Historic preservation not only creates jobs but also generates significant income. While nearly 5,000 jobs and hundreds of millions of dollars in income over the years might seem modest when viewed annually, it’s essential to recognize that if this were a single business, it would be larger than the vast majority of firms in Utah. Utah’s economic strength lies in its diversity. While no economy could thrive solely on historic preservation, the impact of historic rehabilitation is notable compared to other industries. Historic preservation is a labor-intensive activity that provides good wages. It creates more jobs per million dollars of output than most other industries in Utah and generates substantial income, making it a valuable contributor to the state’s economy. The U.S. Congress and the Utah Legislature enacted historic tax credits to encourage private-sector investment in historic buildings. What began as an effort to promote good stewardship has also proven to be an effective economic development tool.
Heritage Tourism
Utah is internationally renowned for its stunning natural landscapes, world-class ski resorts, and global center of The Church of Jesus Christ of Latter-day Saints. Approximately 22 million people visit the state annually, including between 750,000 and 1 million international travelers. While Utah's natural beauty and religious significance draw many visitors, the state also boasts a rich array of heritage resources that both locals and tourists cherish. Quantifying the impact of "heritage tourism" can be challenging, particularly in Utah, where visitors might come for various reasons. For example, the 4 million annual visitors to Temple Square may arrive for religious purposes, genealogical research, or simply to sightsee while attending a convention in Salt Lake City. Temple Square is also a National Historic Landmark. Similarly, the 50,000 attendees of the Sundance Film Festival are visiting Park City, one of the West’s most historic towns. Visitors to Bryce Canyon and Zion National Parks, around 5.5 million yearly, often travel through the Mormon Pioneer Heritage Area, one of the nation's 49 National Heritage Areas. These destinations combine Utah’s stunning scenery and geology with a deep sense of history, creating a rich cultural landscape that attracts visitors worldwide. Although heritage tourism may only account for about 15% of Utah’s overall tourism, its impact is significant. Heritage sites, parks, museums, and events across the state offer visitors a chance to engage with Utah’s diverse history, from Native American cultures to Mormon pioneers and early explorers to modern industries like skiing. This rich history enhances the visitor experience, leading to higher visitation rates at state and national parks, historic sites, and museums than national averages. Heritage tourists tend to have certain characteristics in common. They are typically: Heritage tourists spend more than the average traveler on accommodations, food, outdoor activities, art, and handicrafts. Heritage tourists, generally between the ages of 45 and 65, are at a stage in life when they have more time and discretionary income. They not only visit more places but also travel more frequently. Heritage tourists tend to stay longer than other visitors, with an average stay of 5.8 nights compared to 5.2 nights for other tourists. Heritage sites are sometimes undervalued because they "don't pay their way," meaning the entrance fees collected don't cover operating costs. However, this perspective needs to include these sites' broader economic impact. While less than 7% of a visitor’s expenditures may be spent directly at the historic site, the remaining 93% is spent in surrounding businesses like restaurants, hotels, gas stations, and shops. In this way, heritage sites more than "pay their way," though they may not directly benefit from all the money they generate. Whether or not visitors are explicitly counted as "heritage tourists," the historical character, sites, and events in Utah play a central role in nearly every visitor’s experience. People may come to Utah for various reasons—for a convention, skiing, hiking in majestic canyons, or attending a film festival. Still, they often leave with a deep appreciation for the state’s rich heritage.
Property Values
There are many misconceptions about historic districts that simply "ain’t so." Some common myths include the belief that historic districts hurt property values, that preservation commissions exist solely to block changes, or that these districts are only for the wealthy. However, a closer examination reveals a different story. In Utah, the impact of historic districts on property values was studied using data from five cities: Logan, Ogden, Park City, Provo, and Salt Lake City. The findings were clear: homes in historic districts often perform better than those outside these areas. For instance, in Logan, homes in the historic district appreciated faster than others in the city, and even after an economic downturn, they recover more quickly. In Park City and Provo, houses in historic districts slightly outpaced the rest of the city in value appreciation during the boom years, and they fared better during the decline. In Salt Lake City, homes in most historic districts saw higher appreciation rates than those outside these districts, with no evidence that being in a historic district negatively impacted property values. The study also found that historic districts provide housing options across various price points. In Salt Lake City, for example, some historic districts have higher average home values than the citywide average. Others have lower values, offering quality housing for households at various income levels. Contrary to the belief that local preservation commissions make it challenging to modify homes, the study revealed that over 90% of applications in Salt Lake City were approved at the staff level without needing to go before the commission. Even when applications were forwarded to the commission, nearly 77% were approved, and many of the rest were eventually approved after requested modifications. Only a tiny fraction—about 1% of all applications—were denied.
Sustainability
Energy consumption is often used to assess a building's sustainability, but this is only part of the picture. Factors like embodied energy, material flow, land conservation, and public health also play critical roles in determining a building's environmental impact. With their inherent qualities and design, historic buildings contribute significantly to sustainability across these various measures. Many older buildings are naturally energy-efficient. Historic commercial buildings, for example, were often constructed with heavier masonry for thermal mass, natural ventilation strategies, and strategically placed windows for daylighting. These features, combined with passive design techniques, allowed these buildings to achieve basic thermal and lighting comfort without relying on modern energy-intensive systems. In contrast, 20th-century technologies led to design changes that, while innovative at the time, introduced thermal inefficiencies. These were often addressed by installing more complex heating, ventilating, and air conditioning (HVAC) systems. Despite these advancements, buildings constructed before 1920 perform comparably to those built after 2000 in terms of energy consumption per square foot. Older homes, sometimes less energy-efficient than newer constructions, can easily be retrofitted to improve performance. Simple weatherization and upgrading mechanical, electrical, and plumbing systems can significantly enhance energy efficiency. For example, adding a storm window to an original wood window offers performance comparable to modern low-emissivity double-pane windows but with a much shorter payback time of just four years, compared to 34 years for the latter. One of the most significant advantages of historic buildings is their embodied energy—the energy used in their construction, including the sourcing and transporting of materials. When considering avoided impacts, it becomes clear that demolishing an older building to replace it with a new, more energy-efficient one often results in a lengthy recovery period for the energy used. A new house can take 12 to 15 years to recover the energy expended in its construction, while demolishing and replacing an older house nearly doubles this period. For office buildings, the recovery period for new construction can exceed the expected useful life of the building itself. Rehabilitating historic buildings also reduces material flow, the path of materials from extraction to utilization to landfill. Compared to new construction, demolition, and reconstruction, rehabilitation generates significantly lower material flows. For instance, new construction at the edge of a city produces a material stream four times greater than rehabilitation, while demolition and reconstruction generate a material stream 7.4 times greater. Preserving and reusing buildings at the community level can help offset growth pressures on open lands. Redeveloping brownfields—vacant or underutilized urban land, including older buildings—can preserve significant open space. For example, redeveloping one acre of brownfields is equivalent to preserving 4.5 acres of open space, according to an EPA-funded study. This concept is relevant in urban areas, smaller communities, and rural towns, helping preserve agricultural and recreational lands. Preservation also benefits public health by providing an alternative to suburban sprawl. Reducing the need for driving helps lower greenhouse gas emissions and improves air quality. In Utah, where 57% of greenhouse gas emissions come from vehicles, reducing vehicle miles traveled (VMT) can directly impact public health. During prolonged thermal inversions in Utah's northern valleys, poor air quality posed a significant threat to public health, highlighting the importance of reducing emissions. Creating walkable urban environments, often easier in historic neighborhoods, has significant public health benefits. Walkable areas encourage people to drive less and walk more, which can reduce obesity rates and other health issues. In Salt Lake City, historic districts tend to have higher WalkScores—a measure of walkability—compared to the city average. This indicates that these areas are more conducive to walking, enhancing their sustainability.
Downtown Revitalization
Downtown revitalization, particularly when it incorporates preservation, has become a proven strategy for local economic development. By restoring the historic character of downtown areas, communities experience significant economic growth and attract further opportunities. Downtowns often serve as incubators for local entrepreneurs, whose businesses contribute more to the local economy than national chains. For example, a study in Salt Lake City found that local businesses reinvested over 50% of their income locally, while national chains returned less than 15%. Historic buildings and public spaces reflect a community’s history and future direction, creating a clear identity that enhances marketability and competitiveness. Reinvesting in downtown areas also helps manage overall growth by concentrating development in central business districts, making more efficient use of public resources like infrastructure, and preserving open land for future needs. Economic activity concentrated in these areas increases the density of consumer activity, enabling businesses to support one another more effectively. Various case studies demonstrate the positive impact of preservation-based downtown revitalization. From 1996 to 2005, Panguitch saw nearly a 60% increase in sales for motels and bed-and-breakfasts, while retail sales rose over 300%. In Brigham City, the assessed value of downtown properties surged by over 300%, generating $13 million in sales taxes from a nine-block area over 35 years. An analysis of 67 rehabilitation projects by the Utah Department of Community and Economic Development in 2003 found that each dollar invested generated $11.84 in economic impact, including $1.53 in public revenues. Property rehabilitation has similarly boosted rents and sales across Utah, such as the transformation of the former Continental Bank in Salt Lake City into Hotel Monaco, which generates millions annually in taxes. Between 1997 and 2010, Mt. Pleasant’s downtown sales grew by 33%, outpacing nearby Gunnison and Manti, where sales stagnated or declined following the opening of a Walmart in Ephraim. Preservation-based revitalization efforts support economic growth, strengthen community identity, and create vibrant, thriving downtowns.
Fiscal Responsibility
Fiscal responsibility becomes especially important for taxpayers and elected officials during budget constraints and economic uncertainty. Ensuring that public funds are used effectively is crucial, and historic preservation has proven to be a valuable tool in this regard. Programs like the Utah and Federal Tax Credit demonstrate that preservation saves historic buildings and delivers substantial economic benefits. The Utah Historic Preservation Tax Credit, established in 1992, encourages private investment in historic residential properties by offering a 20% tax credit. This program has revitalized over 1,100 properties, drawing in significant private investment. Beyond preserving buildings, it has stimulated economic growth by creating jobs, generating wages, and boosting local government revenues through increased taxes. The program generates far more economic activity for every dollar the state spends, demonstrating a solid return on investment. Similarly, the Federal Tax Credit program keeps millions of dollars within Utah, benefiting local governments through increased property taxes, which can fund essential services like education and public safety. Historic districts, such as those in Salt Lake City, have shown better property value retention compared to areas without historic protections, illustrating the long-term financial benefits of preservation.