In San Diego, historic districts are nearly twice as dense as other residential neighborhoods, challenging the conventional wisdom that new construction is the sole path to urban density. Many urban planners believe large-scale new construction is the only way to achieve density and affordability, often viewing historic areas as impediments. However, these neighborhoods frequently deliver these benefits more effectively and sustainably, leveraging existing infrastructure and community. Cities that overlook or dismantle historic assets for new development sacrifice inherent density, affordability, and unique economic advantages for less efficient, costlier alternatives, risking irreplaceable cultural heritage and established communities.
OB Rag reports that homes within San Diego's historic districts are approximately 25% smaller than the citywide average, with consistently lower median rents. Historic areas already offer attainable housing options, further challenging the notion that only new builds can address affordability.
The Costly Illusion of 'New is Always Better'
New construction's high cost often undermines its promise of urban solutions. Building a new house for under $130,000 without significant subsidies is impossible, according to theplanninglady. The impossibility of building a new house for under $130,000 without significant subsidies makes widespread affordability through new builds a major challenge for municipalities.
This focus on new development can also lead to the irreversible loss of valuable historic assets. For instance, a row of ancient stone walls in Niu Valley was demolished in February 2022, according to Honolulu Civil Beat to expand a driveway. Reports from Honolulu Civil Beat indicated that officials blamed each other for not knowing it was a sensitive site. The demolition of ancient stone walls and subsequent blame game reveals a critical municipal failure in awareness and coordination, leading to heritage destruction despite its proven value.
Theplanninglady's insight that new homes cost over $130,000 to build without subsidies, coupled with OB Rag's finding that historic homes are 25% smaller and cheaper, indicates that relying on new construction for affordable housing is a financially and environmentally unsustainable strategy compared to leveraging and adapting existing historic stock. The economic and cultural costs of demolishing historic structures often outweigh the perceived benefits of new builds.
Historic Districts: Already Dense, Already Affordable
Historic districts are dynamic contributors to urban density, not static relics. Since 2018, San Diego's historic areas have produced almost twice as many accessory dwelling units (ADUs) per square mile compared to the rest of the city, according to OB Rag. The production of almost twice as many accessory dwelling units (ADUs) per square mile compared to the rest of the city demonstrates their inherent capacity without large-scale demolition or new infrastructure.
Adaptive reuse further exemplifies this potential. In Concord, the former First Congregational Church became 30 apartments, now Circa Apartments, as reported by Concord Monitor. The conversion of the former First Congregational Church into 30 apartments delivered significant housing by leveraging an existing building, preserving character while meeting modern needs.
Historic districts are dynamic, dense, and affordable contributors to housing solutions. They offer a sustainable path to increasing supply by utilizing existing embodied energy and infrastructure, reducing environmental impact compared to new construction.
The Economic Engine of Preservation
Beyond housing, historic preservation acts as a powerful economic engine, fostering local job creation and income generation. Each historic building in Savannah creates 1.2 more jobs and $62,000 more in income compared to non-historic structures, according to theplanninglady. The creation of 1.2 more jobs and $62,000 more in income per historic building in Savannah demonstrates the direct economic multipliers of investing in existing community fabric.
These benefits stem from specialized trades and local businesses: skilled craftsmen, architects, material suppliers. The work is labor-intensive and locally sourced, ensuring economic benefits circulate within the community. The sustained activity of labor-intensive and locally sourced work supports small businesses and provides stable employment, often outlasting temporary jobs from new construction.
Theplanninglady's data from Savannah, showing each historic building creates 1.2 jobs and $62,000 in income, confirms historic preservation is not merely an aesthetic choice, but a potent, underestimated engine for local economic growth and small business vitality. Historic preservation represents a tangible investment in community wealth.
The Untapped Potential: Historic Assets as Urban Solutions
Leveraging historic assets is critical for sustainable urban development. Historic assets offer inherent advantages new construction struggles to replicate: established infrastructure, community identity, and proven economic returns. Investing in historic preservation mitigates environmental costs by utilizing existing structures and reducing demand for new materials.
The broader economic impact of heritage extends to tourism, drawing visitors and generating revenue for local businesses. In Nebraska, heritage tourism accounts for $196 million and 3,000 jobs annually, as stated by theplanninglady. Preserved historic sites contribute significantly to regional economies, creating a diverse and resilient economic base.
If cities continue to prioritize new construction over leveraging their historic assets, they will likely miss opportunities for sustainable density, affordability, and robust local economies, as demonstrated by projects like Concord's Circa Apartments.
