Photo: Krystal T/Flickr
President Trump’s controversial policies and daily Twitter rants are negatively impacting the value of his real estate brand, according to a report released today by the listing site Zumper.
In order to determine the impact on the value of his properties, Zumper compared rental listings both before and after the election in seven “Trump” branded properties with seven similar non-Trump properties in NYC, his hometown.
Properties with similar amenities, in the same geographic neighborhoods and in the same price range were “paired,” one Trump-branded with a similar non-Trump building, for comparison.
For the study, Zumper paired the following properties for comparison: Trump Palace with The Oxford, Trump Parc with JW Marriott Essex House, Trump Park Avenue with 116 Central Park South, Trump Place at 200 Riverside Boulevard with 530 Park Avenue, Trump Tower with The Rushmore, and finally Trump World Tower with 100 United Nations Plaza.
It examined changes in price pre- and post-election, as well as the average number of days a unit spent on the market in each of the paired buildings.
Zumper found that units in five of the seven Trump properties actually performed worse in the post-election election period compared to the control buildings over the same time.
And in three of the pairings, Trump properties spent a longer average time on market as well.
For example, Trump units in the Trump Palace were on the market an average of 29 percent longer after the election than before, compared to just 7 percent in The Oxford. Similarly, units in Trump Park Avenue saw deeper price cuts after the election than similar units in 530 Park Avenue.
Furthermore, in the cases where Trump negatively impacted his brand, affordable units in those buildings were immune to the Trump effect.
“Cheaper units in Trump buildings, in the $2,500-$4,000/month range, were rented as quickly post-election as they were pre-election,” says Zumper in the report.
Conversely, units in both Trump Parc and JW Marriott Essex House both experienced longer days on the market post-election compared to pre-election listing data. However, units in Trump Parc were only on the market an average of 30 percent longer after the election, while units at JW Marriott Essex House were on the market 47 percent longer.
And, while the Trump effect appears to be in full swing at the moment, its long-term effect is debateable.
“NYC real estate is of course extremely competitive, and savvy renters and buyers will move when prices become attractive, regardless of potential stigma,” Zumper’s Director of Strategic Marketing Devin O’Brien tells BuzzBuzzNews.
Click here to read the entire report.