0
0
0

Pricing premium sagging for Trump-branded condos in Chicago, other locales

by Jason Porterfield

The Trump name no longer commands the same price premium once attached to the brand’s properties in Chicago and other locations as the presidential election approaches.

The pricing premium attached to Trump’s name has declined in every year of his presidency. A Redfin analysis of Trump-branded buildings in places outside of Manhattan found that condos at those properties sold for a median price of $720,000 this year, or 9.7% more than comparable units. Trump condos sold at a premium of 22% in 2019 and 33.5% in 2016. The median price for Trump condos in 2016 was $863,750.

Condos listed at Trump Tower Chicago currently range in price from $3.5 million for a 3,092 sq. ft. unit with three bedrooms and four baths to $150,000 for a 580 sq. ft. studio, according to Redfin.

Trump condos take longer to sell than comparable units, as well. Trump-branded condos purchased in 2020 were on the market for a median 118 days, while similar luxury units were listed for a median 78 days. In 2016, Trump condos were on the market for a median 91 days versus 64 days for other condos.

The number of Trump-branded condos sold dropped from 186 in 2016 to 93 through Sept. 30.

The Trump brand’s declining cachet among homebuyers has led to some sellers dropping the name “Trump” from listings altogether. In 2015, 85% of condos for sale in Trump-branded buildings used his name in listings. That number dropped to 64% in 2016, the year he was elected president. Thus far in 2020, 57% of units in Trump-branded buildings have used the Trump name in listings.

“Before Trump entered the political sphere, his name on a building represented luxury,” Redfin chief economist Daryl Fairweather said. “Today, the name carries such a large political weight, that many listing agents may choose to leave it out of their marketing materials so as not to distract or deter potential buyers.”

Fairweather said that the 9.7% price premium still attached to Trump condos is likely due to the president’s enthusiastic supporters.

Redfin’s analysis looked at condo prices in Chicago, as well as Las Vegas; Honolulu; White Plains, NY; Stamford, CT; Sunny Isles Beach, FL; Shrub Oak, NY; Hollywood Beach, FL; and New Rochelle, NY.

Read More Related to This Post

Join the conversation

New Subscribe

  • This field is for validation purposes and should be left unchanged.