The most important benefit is preserving Royal Oak history, both in neighborhoods as well as downtown (and perhaps spurring cultural heritage tourism). According to the Michigan Historic Preservation Network’s report published in 2016, there is also less of a possibility of demolition, as well as some economic benefit, such as higher actualized resale value. The Local Historic Districts Act of 1970, which allows cities to establish ordinances to “regulate the construction, addition, alteration, repair, moving, excavation, and demolition of resources in historic districts within the limits of the local unit,” describes the following as reasons for historic preservation:
(a) Safeguard the heritage of the local unit by preserving 1 or more historic districts in
the local unit that reflect elements of the unit's history, architecture, archaeology, engineering, or culture.
(b) Stabilize and improve property values in each district and the surrounding areas.
(c) Foster civic beauty.
(d) Strengthen the local economy.
(e) Promote the use of historic districts for the education, pleasure, and welfare of the citizens of the local unit and of the state.” (§399.202)
The State of Michigan discontinued tax incentives for historic properties, but it is possible these incentives may be reinstated in the future.