By Serj Markarian, Licensed Associate Real Estate Broker
You might recall that last week I mentioned how buyers are increasingly favoring new developments over traditional co-ops on prestigious NYC addresses. Since it’s been a few years since I last covered the pros and cons of co-ops vs. condos, I thought now—on the cusp of an active spring market—was the perfect time to revisit the topic.
One of the most common questions I get is: Why would someone choose a co-op over a condo, given the challenges of board approvals? The simple answer is price. Co-ops generally offer more square footage for your money, often at a significantly lower cost per square foot than condos. They also tend to have lower closing costs. However, co-ops come with their own set of trade-offs.
While co-ops are typically less expensive upfront, they require larger down payments, and financing can be trickier since lenders are more hesitant. Monthly fees are also higher, as they include the building’s underlying mortgage and property taxes in addition to maintenance, utilities, and security costs. Co-op buyers must also navigate a more rigorous and time-consuming board approval process.
In recent years, co-ops have become less appealing to many of today’s buyers, who are often unwilling to endure the lengthy application process, strict liquidity requirements, and extensive building rules. Many find restrictions on mortgage financing, renovations, subletting, and even pet sizes to be deal-breakers.
These rules—originally designed to protect property values—are now widely viewed as outdated, contributing to the growing gap between co-op and condo values. In Manhattan, the average sales price for condos in Q4 2024 was $3,044,075 compared to $1,349,676 for co-ops.
In response to sluggish sales, some co-op boards are beginning to ease restrictions to attract more buyers. Still, condos remain the preferred choice for many, as they are often easier to finance and have lower monthly fees. Condo owners also enjoy greater flexibility—without the risk of board rejection when selling or restrictions on renting out their units.
That said, co-op advocates argue that their strict approval processes foster a sense of community and ensure responsible, long-term residents. Meanwhile, condo owners tend to value the freedom that comes with their purchase.
Ultimately, the decision between a co-op and a condo comes down to your priorities. If you’re looking for flexibility, quicker turnaround times, and an easier resale process, a condo may be the way to go. If you prefer stability and a lower price per square foot, a co-op could be a better fit. Either way, the current market presents opportunities for buyers on both fronts.