Have you ever wondered how owning a historic home in Los Angeles could impact its value? Many homeowners dream of having their property designated as a historic-cultural monument, hoping it will cause their home’s value to skyrocket. But is that always the case? In this blog post, we’ll explore how historic designations affect your home’s resale value, explain the Mills Act (a significant incentive for preserving historic properties), and highlight where you can find some of the most charming historic homes in Los Angeles.

The Appeal of Historic Homes in Los Angeles

Los Angeles is home to some truly spectacular architecture, with many homes dating back over 100 years. Whether you’re drawn to the timeless charm of a Craftsman bungalow, the sleek lines of mid-century modern, or the intricate details of a Victorian house, LA has it all. These homes, considered “historically significant,” often feature unique architectural details, including woodwork, molding, and even windows, that reflect the craftsmanship and trends of their era.

However, the charm of a historic home isn’t just about the architecture—it can also be tied to the property’s cultural significance. Some homes gain historic status because of their connection to notable figures or events. A recent example is Marilyn Monroe’s house, which was designated a historic-cultural monument after a long legal battle. While this property had undergone renovations over the years, its historical connection to Marilyn Monroe made it a candidate for preservation.

How Does Historic Designation Impact Property Value?

Owning a historically designated home can boost your property’s value. On average, homes listed on the National Register of Historic Places are 5.6% more expensive than similarly sized homes in the same area. However, they tend to sell 3.4% slower. Why the slower sales? These properties often have restrictions on what you can modify, particularly when preserving their historic character.

But here’s the exciting part: homes located in National Historic Districts actually appreciate 1.4% faster than other homes in the same county. So, while they may take a bit longer to sell, they offer long-term value and faster appreciation—making them a sound investment.

Where Can You Find Historic Homes in Los Angeles?

Los Angeles is rich in historic districts, known as Historic Preservation Overlay Zones (HPOZs). These zones are neighborhoods that have been designated for their historical significance, and you can find them all over the city. Some popular HPOZs include:

Angelino Heights: Famous for its well-preserved Victorian homes.
Hancock Park: Known for its grand estates from the 1920s.
Highland Park: A mix of Craftsman and Mission Revival homes.
Lafayette Square: A gated community with architectural gems from the early 20th century.
West Adams: One of the city’s oldest neighborhoods, filled with historic mansions.

If you’re in the market for a historic home, these areas are a great place to start your search.

Understanding the Mills Act: A Financial Incentive for Preservation

One of the best ways to preserve historic homes in Los Angeles is through the Mills Act, a program designed to provide financial relief to homeowners of historic properties. Enacted in 1972, the Mills Act reduces property taxes for owners of historic properties, helping offset the costs associated with maintaining these special homes. If you see a property labeled as a “Mills Act home,” it means the property taxes are likely lower, but there may be restrictions on modifications.

Mills Act contracts last for 10 years and automatically renew, offering a long-term benefit to homeowners who want to preserve their home’s historic character while enjoying significant tax savings.

The Process of Designating a Historic Home

If you’re thinking about getting your home designated as a historic cultural monument, there are a few steps to follow. You’ll need to start by nominating your property with the Office of Historic Resources within the City Planning Department. A key part of this process involves the Cultural Heritage Commission, a five-member team appointed by the mayor, who evaluates nominations and assesses whether a property holds historical significance. If approved, your home will join the ranks of LA’s most treasured architectural landmarks.

The Pros and Cons of Owning a Historic Home

While owning a historic home can be rewarding, it also comes with challenges. Renovations can be costly, especially since many of the original features of these homes, such as windows and woodwork, need to be custom-made or sourced from specialty suppliers. Additionally, HPOZ committees often have strict guidelines on what changes you can make to both the exterior and interior of the property.

On the bright side, owning a historic home means you’re contributing to the preservation of Los Angeles’ rich cultural and architectural heritage. And with the right property, you can also enjoy financial benefits like those offered by the Mills Act.

Conclusion

Historic homes in Los Angeles offer a unique blend of architectural beauty, cultural significance, and financial benefits. While they require careful preservation, they are a rewarding investment for the right buyer. Whether you’re looking for a Craftsman in Highland Park or a Victorian in Angelino Heights, LA’s historic districts provide plenty of options.

If you need help finding the perfect historic home or want to learn more about the Mills Act and how to get your property designated, feel free to reach out. I’m Felipe Crook with eXp Realty, and I’m here to help you invest in your dreams.

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