Buying in a Historic Building: Pros, Cons, and Costs

Historic buildings have a charm that’s hard to replicate. From ornate facades and original moldings to high ceilings and thoughtful layouts, these homes often stand out in a sea of newer construction. For many buyers, especially in cities like Chicago, historic buildings offer character, location, and a sense of permanence. That said, buying in a historic building comes with its own considerations. Understanding the pros, cons, and costs upfront is key to making a confident decision.

The Pros: Character, Location, and Longevity

One of the biggest draws of historic buildings is character. Details like hardwood floors, decorative fireplaces, solid doors, and thick masonry walls add warmth and architectural interest that’s difficult (and expensive) to recreate today. Location is another major advantage. Many historic buildings are situated in established neighborhoods close to transit, parks, dining, and cultural institutions. These areas tend to hold value well over time because the land itself is irreplaceable.

From a construction standpoint, older buildings were often built with durability in mind. Solid brick, stone, and plaster construction can translate into quieter units and better insulation between homes.

The Cons: Rules, Restrictions, and Maintenance

Historic designation often comes with restrictions. Exterior changes—windows, doors, balconies, or facade work—may require special approval, which can slow projects and increase costs. Even interior changes can sometimes be limited depending on the building and designation. Maintenance is another consideration. Older buildings may have aging plumbing, electrical systems, or roofs that require ongoing attention. While this doesn’t mean constant problems, it does mean owners should expect regular maintenance and occasional capital projects. Layouts can also feel less flexible. Closets may be smaller, kitchens more compact, and floor plans less open than what buyers see in newer construction.

The Costs: What Buyers Should Budget For

HOA assessments in historic buildings can vary widely. Some are surprisingly reasonable, while others are higher due to staffing, deferred maintenance, or upcoming projects. Reviewing reserves, recent capital work, and planned improvements is essential. Special assessments are a real possibility. Roof replacements, masonry work, or elevator upgrades can be costly, and buyers should understand whether those expenses are already planned or anticipated. Utility costs can also differ. Older windows and systems may be less energy efficient unless updated, which can affect monthly expenses.

What to Look for Before Buying

A strong HOA with healthy reserves is one of the most important factors when buying in a historic building. Recent improvements—such as updated risers, roof repairs, or tuckpointing—are positive signs that the building is being actively maintained.

An inspection is especially important in older buildings. It helps buyers understand not just the unit, but how the building functions as a whole.

The Bottom Line

Historic buildings offer charm, location, and long-term appeal—but they require thoughtful due diligence. For buyers who value character and are comfortable with shared responsibility through an HOA, they can be an excellent choice. If you’re considering a historic building and want help evaluating whether it’s the right fit—financially and lifestyle-wise—reach out. A little clarity upfront goes a long way in making a confident purchase.

Photo Credit: Architectural Digest