Co-op vs. Condo: Understanding the Differences
If you’re navigating the New York City real estate market, one of the key decisions you’ll face is choosing between a co-op or a condo. This distinction is unique to New York City and adds to the complexity of buying a home here.
Beyond these two options, you’ll also come across condops (hybrid buildings with features of both co-ops and condos), townhouses (single-family homes that share a wall with a neighboring property), and free-standing houses in select neighborhoods.
What is a Co-op?
A co-op (short for cooperative) is a type of ownership where instead of buying a unit outright, you purchase shares in a corporation that owns the building. The number of shares corresponds to the size of your unit—larger apartments come with more shares. Buying a co-op typically requires board approval, which involves a rigorous process including financial criteria, references, and an interview (though sponsor units may bypass this).
Co-op owners pay monthly maintenance fees, covering building expenses such as property taxes and upkeep, and must adhere to board regulations. While co-ops make up the majority of NYC’s residential buildings, listings on platforms like Douglas Elliman and StreetEasy show a fairly even distribution between co-ops and condos.
What is a Condo?
Purchasing a condo means you own your unit outright while sharing ownership of the building’s common areas with other residents. Condos are often found in newer developments with upscale amenities and typically come with higher purchase prices and closing costs compared to co-ops. Instead of maintenance fees, condo owners pay common charges, which cover similar building expenses. While condos have boards, their approval process is far less restrictive than that of co-ops. Additionally, condo ownership offers greater flexibility, usually allowing for easier subletting, renting, and use as a pied-à-terre.
If you'd like more information about co-ops, condos or any other type of New York City property, please e-mail us at [email protected].
