Oakley’s billionaire founder is the latest victim of the sluggish luxury housing market—but the profit he could still make shows an underlying problem
Key Takeaways
Some ultra-wealthy luxury home sellers are being forced to drop the prices of their listings.
Article Overview
Quick insights and key information
4 min read
Estimated completion
real estate
Article classification
August 7, 2025
09:05 AM
Fortune
Original publisher
Real Estate·LuxuryOakley’s billionaire founder is the victim of the sluggish luxury housing market—but the fit he could still make shows an underlying blemBy Sydney LakeBy Sydney LakeAssociate EditorSydney LakeAssociate EditorSydney Lake is an associate editor at Fortune, where she writes and edits news for the publication's global news desk.SEE FULL BIO Beverly Hills neighborhood in Los Angeles.Getty Images—Yannik GressenichJames Jannard, the billionaire founder of Oakley, has re-listed his Beverly Hills megamansion for $65 million, down from the original $68 million price listing from June 2024
Despite the price drop, Jannard stands to make a significant fit since he purchased the perty for $19.9 million in 2009
This trend of wealthy sellers, including Jannard, dropping prices highlights a broader market correction where luxury buyers prioritize value and long-term security over vanity pricing
Even the wealthiest Americans are contending with today’s housing market
Take James Jannard, the billionaire founder of luxury eyewear and apparel brand Oakley, as an example
Jannard, who’s worth an estimated $1.3 billion according to Forbes, just re-listed his Beverly Hills megamansion for an eye-popping $65 million
Still, that’s a drop from the $68 million he originally listed it for in June 2024
Oakley founder James Jannard during Launch of Oakley Thump Digital Audio Eyewear at Oakley Headquarters in Foothill Ranch, Calif. in 2004.Getty Images—Lee Celano/WireImage for Oakley He’s fallen victim to a challenging trend in the luxury housing market where many of the country’s most lavish and expensive s are being priced too high when they hit the market
And now, Jannard stands to lose out on the ceeds he was expecting when he first listed the house
For what it’s worth, Jannard paid $19.9 million for the perty in December 2009, so even if he manages to find a buyer at the $65 million asking price, he’ll make a pretty penny for the sprawling five-bed, nine-bath concrete megamansion that stretches more than 18,000 square feet and nearly two acres in one of the most sought-after neighborhoods in Los Angeles
Orange County-based luxury real-estate firm The Altman Brothers represented the listing last year
View this post on Instagram A post d by Josh Altman (@thejoshaltman) The current listing agent on the perty is Aaron Kirman with Christie’s International Real Estate, who has several listings of more than $100 million in the Los Angeles area
Kirman and Jannard didn’t immediately respond to Fortune’s requests for the perty
Other ultra-rich sellers have recently been forced to drop their listing prices
In May, Jennifer Lopez and Ben Affleck dropped the price of their $60 million Beverly Hills mansion by $8 million, and last year, billionaire media mogul Rupert Murdoch slashed the price of his Manhattan penthouse by nearly 40% to $38.5 million
The housing market factors affecting sellers While we’re not fully out of a seller’s market, the tides have begun turning in favor of buyers as listings stay on the market longer and price cuts become more common, according to Realtor.com
For that reason, price drops aren’t surprising, especially in the saturated Los Angeles luxury market where buyers have more leverage, Anthony Luna, CEO of LA-based real-estate advisory Coastline Equity, told Fortune. “Square footage and celebrity don’t justify inflated pricing anymore,” he said. “Buyers want smart design, upgraded systems, and long-term value.” The mansion tax in LA, which applies an additional 4% tax to perty sales of at least $5 million and a 5.5% tax for perties north of $10 million, further complicates real-estate sales and pricing
The cost of the tax, which is typically paid by the seller, is separate from a ’s sale price and can be a “massive amount of money,” Selling Sunset star and Oppenheim Group agent Emma Hernan previously told Fortune
She also described it as a “nightmare” for sellers and agents a
Hernan said she warns her clients the mansion tax before they prepare to sell
Take a $5 million , for example
The seller would have to pay an extra $200,000 they “didn’t really factor in when they bought the because the mansion tax wasn’t in play,” Hernan said
The trend of luxury- price drops that of Jannard, Murdoch, and Lopez say something bigger the housing market: a larger correction, Luna said. “The luxury market is no longer vanity
It’s value and security,” he said. “Buyers are doing the math, and they’re calling the bluff.” Introducing the 2025 Fortune 500, the definitive ranking of the biggest companies in America
Explore this year's list.
Related Articles
More insights from FinancialBooklet