In a city long dominated by co-ops, having the “right address” and getting approved by the toughest of co-op boards used to be the ultimate goal. But condos are the shiny new kids on the block, and changing the way NYC folks view opulence.
The long reign of the co-op
New York City has long been overpowered by co-ops, accounting for 56 percent of the housing market, according to real estate analytics firm UrbanDigs. These longstanding co-ops came with numerous advantages. The biggest one for many was the fact that they were managed by a Board of Directors elected by the shareholders. Besides overseeing the building’s managing agent, the elected members of the board established and maintained the rules and policies intended to benefit all owners and provide a sense of community.A co-op board’s oversight of proposed sales and “board packages” has been well publicized. Each co-op board has modified these packages to meet its own standards and criteria. The goal is to obtain a full picture of all prospective owners, ensuring that they are financially sound and that their proposed income would be sufficient to cover payments on the maintenance, mortgage, and occasional assessments. The applicant’s assets and liabilities would also be scrutinized, and the purchasers are almost always interviewed and references are checked. The overall goal is to ensure that prospective purchasers are financially qualified and will be good neighbors (no one wants the new neighbor blasting loud music through odd hours of the night, or worse).
There is something priceless about the look on the face of someone who is new to NYC, whose offer to buy a coop is accepted, and they receive the board package application package. The first question they ask me is if everything really is required. But alas, this game has continued because every neighborhood and desirable location anyone wanted to live in was filled with co-ops. For a while, no one actually questioned these things; they became as ingrained in the NYC lifestyle as the rats were to the subway.
People from all over the world felt the sense of splendor walking on Park Avenue on the Upper East Side passing buildings like 740 Park Avenue, where the likes of John D. Rockefeller Jr, Jackie Kennedy Onassis, Vera Wang, and many other prominent figures have resided, or strolling down Central Park West past the San Remo, where famously Madonna was rejected from the board. San Remo residents have included the likes of Steven Spielberg and Steve Jobs. These buildings, with their neo-Georgian and art deco style, were synonymous with New York – elegant, yet understated. And they were beyond the normal white glove luxury one expects, with their secretive boards, lack of financing, and the hush-hush grandeur of the residents; it was where anyone who was anyone wanted to live.
The rise of the condo generation
Fast-forward a few decades, and millennials have a different idea. They want amenities, and not just gyms and playrooms. We are talking screening rooms, golf simulators, squash courts, swimming pools, and sometimes even pet spas! The list is endless, and these younger consumers are ditching the fancy addresses and status and running to these new pricey pads.
The idea of having a secretive board decide your fate and casting judgment on what you can and cannot afford is not acceptable to this younger generation; they would rather leverage up on their mortgage and keep their cash available to invest, and no board was going to tell them differently.
In recent years, the number of luxury condos being constructed to keep up with this new demand has steadily risen. In 2018, 70 Vestry in Tribeca made more than a splash with its record-breaking prices for the neighborhood, and units were quickly bought up by Tom Brady and Gisele Bündchen, as well as Formula One racer Lewis Hamilton. The green awnings and dimly lit lobbies of the past are being replaced with gallery-like entryways, fitted with curated art and bespoke finishes.
Co-ops vs. condos: What the future holds
So is the coop market doomed? What becomes of these 5th Avenue apartments with breathtaking sunset views? It is hard to pinpoint where things will shake out. On the one hand, the younger generation is loving the idea of a traditional purchasing model, 20% down, and holding on to their cash to invest elsewhere. But, there is still a sense of luster over a Rosario Candela pre-war building, with its grand architecture, high ceilings, and large footprint.
Of course, there is still a large difference in price point, with luxury co-ops (above $4 million) trading at a median of $1,581 per square foot, according to UrbanDigs, whereas the counterpart in a luxury condo sits at $2,480 – a big difference.
As the market is showing, the pendulum is swinging and is likely going to end somewhere in the middle. Many coop boards have loosened some of their stringent stipulations, scratching the summer work rules, allowing some reasonable level of financing, and in some cases even allowing sublets for short amounts of time; these changes are alluring some younger clientele who have an appreciation of the old architecture and quintessential “New York” feel.
While condos are offering newer and more amenities every day, such as The Henry on the Upper West Side (which offers its residents a bowling alley, pickleball court, movie theater, and more), the older pre-war co-ops offer a grandeur of architecture and large-scale floor plans that are hard to overlook.
The saying “old is gold” comes to mind, and I am not sure if I am ready to jump ship, and think the coop market has died. To top it off, the prices of these new luxury condos are constantly hitting new record highs. I think the coop market may find a resurgence for those looking to find good value in their next home.
From London to Hong Kong and now New York City, Monisha Rana brings a global perspective to the Blacker & Reed team at Coldwell Banker Warburg. Having relocated internationally with her family, she understands firsthand the complexities of moving across borders—from securing housing and schools to navigating unfamiliar systems. Monisha’s personal experience buying, selling, and renovating homes, including her current Manhattan co-op, gives her deep insight into every step of the real estate process. A native New Yorker with a fast-paced, hands-on approach, she specializes in helping clients relocate from abroad with ease and efficiency.
