Buying in NYC: The Real Price of Choosing a Co-op Over a Condo

What You Save, What You Give Up

The big picture
Co-ops still make up about half of Manhattan closings and outnumber condos more than two to one. But new development is almost all condo: so far in 2026, about 90% of Manhattan new-development closings were condos and under 1% were co-ops. It is to be seen whether new pressures, especially the city's new pied-à-terre tax, will push the market further toward condos.

Where co-ops still win

• Price. Co-ops are almost always cheaper per square foot than comparable condos.
• Taxes. Co-op buyers avoid some taxes, notably the mortgage recording tax. That tax can add tens of thousands of dollars to a financed condo closing.

Why condos are gaining with local buyers

• Amenities. A doorman, gym and roof deck used to make a building feel amenity-rich. Today buyers treat those as baseline. New condos sell a lifestyle: co-working space, screening rooms, podcast studios, dog spas, bowling alleys. Co-ops often offer bigger rooms and prewar charm, but little beyond the apartment door.
• In-unit features. Many older co-ops ban washer/dryers. Central air is often impossible, so owners rely on window units. Wet-over-dry rules frequently prevent adding bathrooms. New condos usually include all of these.
• Unpredictable costs. Co-op fees are climbing because of insurance, labor and utilities. Older buildings also face big-ticket replacements: boilers, elevators, roofs, plumbing and electrical.
• Facade and Local Law 97. Facade inspections every five years can turn routine repointing into years of scaffolding and heavy assessments. Local Law 97 compliance also hits older buildings, which are mostly co-ops, harder. Buyers should check both a building's current emissions status and its plan for future limits.
• The pied-à-terre tax. This is the newest and most co-op-specific risk.
  • The tax took effect July 1 and applies to non-primary residences with a Department of Finance value of $1M or more. That roughly equals a market value of about $5M.
  • Condo owners simply see it on their own tax bill. A co-op is one tax lot, so the corporation must pay the surcharge and then collect it from the shareholder.
  • If a shareholder doesn't pay, the debt can become a lien on the whole building. That could trigger a default on the underlying mortgage and complicate financing for buyers in the building.
  • Brokers argue many boards will simply ban pieds-à-terre. The city has suggested boards amend their proprietary leases rather than granting them explicit collection authority.
  • Primary residents are exempt, but may need to document it. Part-time and foreign buyers should expect tighter second-home rules and more residency disclosure.
  • Exposure is limited at the top of the market. In 2026, about 3% of co-op closings were $5M+, versus 13% of condo closings.
  • The tax is still being challenged in court.
• Board interviews. For buyers who have already been fully underwritten, a personal board grilling can feel outdated. Co-ops are also generally less welcoming to foreign buyers, who own an estimated 10–15% of city properties.

Side-by-side listings
From a $349K Downtown Brooklyn studio to SoHo lofts near $6M. In every pair, the co-op is priced roughly 23% to 44% below the condo. Some examples:

• Gold Coast 3BR: $3M co-op vs. $5.2M condo
• Lenox Hill 2BR: $1.35M co-op vs. $2.1M condo
• Forest Hills 2BR: $695K co-op vs. $1.15M condo

The co-op listings also show the fine print buyers deal with: flip taxes, assessments, financing caps, sublet bans and pied-à-terre policies.

Is the Co-op vs. Condo Debate Closed? Far From It…
Co-ops are far from finished. Despite their hidden costs and thinner amenities, they still account for most owner-occupied homes in the city. That's partly because they are more plentiful and more affordable. It's also because of community: apart from a few overly exclusive buildings, many co-ops are diverse, multigenerational places where longtime and newer New Yorkers share both an investment and a neighborhood.

Sources:

• CityRealty