Designation of historic neighborhoods or communities as local historic districts is a successful tool for maintaining a quality of life and providing economic security. Preservation has been proven to stabilize property values and stimulate new investment in older neighborhoods.

A Raleigh Historic District is a distinctive area, a place of singular historical flavor characterized by its streets and squares, buildings and trees, architectural design and landscape features. It may be monumental or simple, residential or commercial. There are currently eight local historic districts in Raleigh: Blount Street, Boylan Heights, Capitol Square, Moore Square, Oakwood, Prince Hall, Glenwood-Brooklyn, and Oberlin Village.

RHDC is charged by the City Council to consider local historic district designation where appropriate.

Since the implementation of the city's Unified Development Ordinance (UDO), the commission has received many inquiries about character preservation overlays.