Since Donald Trump was elected president in 2016, real estate rubberneckers have wondered if there would be some sort of “Trump effect” on his residential properties—either a boost in sales, or a dip in popularity. According to a new report, the latter appears to have happened since Trump took office.
A new analysis by CityRealty found that prices at the Trump Organization’s residential properties in New York City have been significantly outpaced in the past year by those at newer, shinier luxury buildings, such as 15 Central Park West (which is just a few blocks from the Trump International Hotel and Tower) and 432 Park Avenue (situated near the original glitzy Trump property, his eponymous Fifth Avenue tower).
CityRealty used price per square foot as an indicator, and the differences were, in some cases, quite stark. For example, the average PPSF at Trump International Hotel and Tower, which the analysis rated as one of the Trump clan’s most valuable properties, is just above $3,000; but 15 Central Park West, which opened in 2007, hovers around a whopping $7,000 per square foot. A similar story plays out with the buildings along Billionaires’ Row, and more competition—in the form of skyscrapers like Central Park Tower and 220 Central Park South, which are poised to be two of New York’s most expensive buildings—is on its way.
“Considering each building individually, there does appear to have been a discernible effect, with prices trending downward in most Trump-branded buildings over the past year,” CityRealty notes in its report.
While it’d be easy to blame the dip in value solely on the Trump family’s prevalence in the news in the past few years, a more likely culprit is the fact that Trump-branded properties are just … old. None were built after the recession in 2008, meaning the luxury boom that occurred around 2013 benefited newer properties.
Plus, newer buildings offer much more in the way of modern amenities—everything from porte cochères that ensure maximum privacy to spas with private hammams—and fresh architecture. “The aesthetics have also changed,” superbroker Dolly Lenz told the New York Times. “Back then, brass and gold was cool. Today, the aesthetic is much more minimalist.” (And Trump condos may be many things, but minimalist is generally not one of them.)
The Trumps, unsurprisingly, are not having it. “Data can be manipulated to tell any story you want,” Eric Trump, the president’s younger son, told the Times. He also said that it is “undeniable” that “our buildings sell for the highest prices per square foot of any properties in the world,” despite the evidence to the contrary.
- The Trump Report [CityRealty]
- Trump’s Towers Pale Next to Ultraluxury Buildings, Studies Show [NYT]