Trump Condo Prices Dropping Drastically Because No One Wants to Live In Them
Manhattan real estate has always been a tough game, but any property owner who can offer a great location, amazing skyline views, a spa, and a fancy restaurant off of the lobby should be able to charge top dollar for their units, with potential annual revenue in the hundreds of millions.
Unless the name on the building is Trump World Tower. Because not only are there plenty of empty condos currently available, they’re also selling at a deep discount. As long as the buyer doesn’t mind the name over the door, they can pick up a luxury apartment in the heart of Manhattan for what local realtors would consider a song.
All over the country, real estate bargain hunters are swooping in to take advantage of prices in Trump buildings that have dropped to their levels not seen in over a decade, a crash brokers attribute to a combination of the former guy’s polarizing image and the coronavirus pandemic. It’s a stunning turnaround for a brand that once lured the rich and famous willing to pay a premium to live in a building with Trump’s golden brand out front.
Just how much the Trump name is to blame is impossible to say. Many units for sale are in cities that were hit hard by the pandemic or in hotels that had to shut down or in condo buildings much older than their competitors, making comparisons difficult. But over the past 15 years in 11 Trump-branded buildings in Chicago, Honolulu, Las Vegas, and New York, prices for some condos and hotel rooms available for purchase have dropped by one-third or more.
Pricing for the condos in Chicago’s Trump International Hotel and Tower dropped 34% during the four years of his administration. That compares with a 6% drop over the same period at 18 nearby luxury condo buildings of similar age.
An Associated Press review of more than 4,000 transactions over the past 15 years in 11 #Trump-branded buildings in Chicago, Honolulu, Las Vegas and New York found prices for some condos and hotel rooms available for purchase have dropped by one-third or more.
— Sean Graf (@seangraf) June 4, 2021
In Las Vegas, prices at Trump’s hotel have fallen 4% since he took office four years ago, while average prices for three dozen other hotels in the city that also sell condominiums and rooms rose 14%. Prices at the Trump International Hotel in Waikiki plunged 23%, and while the nearby Ritz-Carlton also got hit hard, down 20%, Trump fared far worse when compared with a broad sample of three dozen Honolulu hotels that also sell rooms: Their prices over four years fell only 3%.
Whatever could have tarnished the Trump brand?!
I wouldn’t worry, Jr. has all that sweet Cameo dough comin’ in.
— Jay Black (@jayblackisfunny) June 4, 2021
The bigger damage is likely to be to the former guy’s image, delicate ego, and future branding. Developers who used to pay him millions to use his name won’t strike deals with him if they think it could sink prices or create a public boycott.
There's real irony here. He only wanted to be potus to build his brand, and he's ruined it.😆 "Trump condos scooped up at rock-bottom prices as '50 percent of people' refuse to live in them."
— Margo Howard (@Margoandhow) June 4, 2021