The former U.S. President Donald J. Trump, who once boasted of his real estate empire and luxury lifestyle, is facing a harsh reality in the Manhattan market. His branded condominiums have lost their appeal and value over the past decade, while those that have removed his name have seen a rebound.
According to data from two real estate tracking firms and an analysis by a Columbia University economist, the Trump-branded condos in Manhattan have sold for less than similar units since 2016, when he was elected president.
As reported by Homeward How on Monday, February 26, 2024, the average price per square foot of his condos fell by 23 percent between 2013 and 2023, according to CityRealty, a real estate listing website. In contrast, the four buildings that ditched the Trump name after a legal battle ended the decade with a 9 percent increase in value, ahead of the average Manhattan condo market which rose by 8 percent over the same period.
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The economist, Stijn Van Nieuwerburgh, said that his analysis clearly identified that it was the Trump brand that was responsible for the value deterioration. “Removing the Trump name from the building removes the loss associated with the name,” he said.
The most striking example of the brand’s decline is the Trump Tower on Fifth Avenue, which features a five-story waterfall and Breccia Perniche marble. The average price per square foot of its condos fell by 49 percent since 2013, the lowest since 2010, according to Ondel Hylton, the senior director of content and research at CityRealty.
He attributed the drop to the building’s age, the competition from newer and more luxurious condos on Billionaires’ Row, and the regular protests and security measures that have disrupted the area.
The Trump Organization, which is run by the former president’s sons, Eric and Donald Jr., disputed the data and claimed that their buildings sell for the highest prices per square foot of any properties in the world.
Eric Trump said in an email that data can be manipulated to tell any story, but the fact remains that their buildings are undeniable. He cited a $17 million condo sale at the Trump International Hotel and Tower New York in 2024, which he said exceeded the prices at other prestigious properties in the city.
However, the $17 million sale was modest compared to other top sellers in the city, such as the West Village penthouse that sold for $52 million at $11,400 per square foot. The Trump condo sold for around $4,600 per square foot, according to CityRealty. The best-selling condo in a Trump-branded building was ranked 47th in a recent review of top 100 sales in 2023, CityRealty found.
The former president, who is facing several legal and financial challenges, including a lawsuit that ordered him to pay a penalty worth over $450 million for inflating the value of his real estate holdings, has used his branded image of luxury as a means of defense. One of his lawyers, Alina Habba, argued in court that her client is worth hundreds and hundreds of millions, let alone the brand which is worth billions. But the Manhattan market seems to tell a different story.
