There is debate over whether self-proclaimed real estate "tycoon" Donald Trump is really the tycoon he claims to be. However, according to a new report, people who have bought apartments in condo towers built by Trump have not had a good experience.

At least in recent years when prices have skyrocketed. A Realtor.com study of property transactions under the former president's brand has revealed decidedly disappointing numbers. According to the official website of the National Association of Realtors (NAR), apartment prices in its buildings "have decreased or appreciated at a slower rate than local markets." Citing data from analytics firm CoreLogic, the study determined that while the average sales price of condominiums between 2019 and 2022 increased By 38%, the average price of Trump-built properties decreased 14%. None of the properties built by the former president exceeded the market in his area.

The problem is that, probably due to Trump's multiple legal problems, the name of the place no longer guarantees the prices he once had. In response, some buildings have taken steps to remove Trump's name from their branding in hopes of distancing themselves from the Republican standard-bearer. However, according to the report, these buildings, considered some of the best managed in the Big Apple, are so old that they have difficulty competing with newer properties that offer all the amenities of more modern places. Trump hasn't built anything in the city since just before the pandemic. For example, in Manhattan, the price of Trump buildings has fallen about 16% since then, according to Realtor.com analysis. During the same period, the value of all condo towers in the district has increased approximately 11%.

In South Florida, owners of Trump-built condo buildings have fared a little better: Prices have risen about 15% between 2019 and 2022. However, during that same period , prices in Miami-Dade and Broward counties have skyrocketed 50%.

NEW CONSTRUCTION TREND

With the shortage of homes for sale, new construction has become the primary option in many places across the country, and builders seem to have realized this. According to new industry data, the percentage of builders reducing their prices has decreased each month since November and now only three in ten reduce their prices, which is just 6%. At the same time, the National Association of Home Builders (NAHB) reported Slightly more members have used mortgage interest rate cuts, gifts and other incentives to boost sales. However, 54% is still lower than the 62% who offered gifts and the like in December.

It remains to be seen whether this trend will continue. After all, mortgage rates have forced many would-be buyers to stay on the sidelines, but the limited inventory of existing homes has increased demand for new homes, and builders' optimism has grown as a result. Currently, according to the NAHB, one-third of unsold homes are new construction, compared to historical norms of just over 10%.

RESIDENTIAL ENERGY CREDITS INCREASE

More than 2.4 million taxpayers applied for at least one residential energy credit in fiscal year 2020, the most recent for which data is available. Although this figure is Far from the nearly 7 million people who applied for an energy credit in 2010, tax returns claiming the credit have increased again since 2018. In 2020, the IRS reported Nearly nine out of ten homeowners who applied for one had adjusted gross incomes of less than $200,000.

The tax credits were enacted by Congress in 2005, one for retrofitting and remodeling homes and another for installing alternative energy sources in new and existing homes. As in previous years, the most common renovation in 2020 was the installation of more efficient windows. Changes were also made to the water heaters; insulation and the exterior doors were changed. To a lesser extent, new roofs were also installed, which is the most expensive upgrade of all.

BUILDERS LOSE GROUND

Almost 3,000 homes have been built a day nationwide since 2012, according to a new analysis from Point2. YeahHowever, this is barely enough to keep pace with demand, and the Point2 study indicated that builders are losing ground. It is important to mention that Point2 is part of Yardi Systems, which also owns Multi-Housing News, a specialized publication to which I regularly contribute.