Co-op vs. Condo: The Ultimate Explainer for NYC Buyers

Buying a home in NYC is complicated, but rewarding. If you're a first-time home buyer, or even a returning buyer who needs a refresher, this guide will provide you with tips and strategies for your home-buying journey.

A few of the topics covered in this guide include: how to find your dream home, how to find a buyer's agent, how to prepare for a co-op board interview (and what even is a co-op vs. a condo?), information about home inspections, home loans and mortgages, and much more! We hope these articles will help you make educated decisions and feel a little more confident as you begin this journey — whether you're a first-time home buyer or a real estate veteran. Happy home shopping!

Condo or co-op? That is the question. So you’ve decided to take the plunge and — gasp! — bid farewell to renting forever. Or maybe you’re a seasoned buyer looking to purchase your next place. Either way, buying is a big decision. In your search, you’ll notice most NYC apartments fit into two major building types: co-ops and condos. As you balance the pros and cons of each option, you might wonder: why are condos more expensive than co-ops? And what is a co-op exactly? Before you go crazy figuring it all out, read our comprehensive explainer on co-ops vs. condos in NYC.

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What’s the Difference Between a Co-op and a Condo?

Co-ops are a unique part of the New York City real estate landscape. In fact, when you buy a co-op, you’re not buying real estate in the traditional sense. You’re purchasing shares of a cooperative, or “co-op,” and that co-op owns the building. The bigger your unit, the more shares in the co-op you own. You’ll get what’s called a proprietary lease, which lays out the relationship between the co-op and you, the shareholder.

A condo, on the other hand, is a private residence in which you own the unit itself, making it true real estate. Not only do condo residents own their individual apartments, they also jointly own common areas that make up the rest of the building, like the hallways, elevators, and any other shared spaces. You’ll receive a deed, which is a record of ownership.

“You have a little bit more control and a little bit more flexibility as an owner of a condo than when you purchase a co-op,” explains agent Steven Irizarry of SERHANT.

Price points, approval processes, down payments, homeowner restrictions, and financial requirements make up the rest of the key differences. But none of these differences mean that one is inherently “better” than the other. That’s for you to decide, based on your needs.

If you’re still confused, you’re not alone. Watch our thorough co-op vs. condo explainer from StreetEasy Home School, our educational video series, below. And for even more guidance, reach out to our Concierge who can answer all of your NYC buying questions and match you with a StreetEasy Expert buyer’s agent.

Contact the StreetEasy Concierge

Are Condos More Expensive Than Co-ops?

As you peruse your buying options, you’ll probably notice that condos tend to command higher prices than co-ops — even when they’re on the very same block.

So why are condos more expensive than co-ops? It’s a combination of factors. First of all, as mentioned before, condos are true real estate while co-ops are shares of a building. Additionally, condos are generally newer and have more amenities than co-ops. They can be attractive to overseas buyers, many of whom come with deep pockets. But the price differential might not be as stark as the sales numbers suggest. On average, most condos are larger than most co-ops in the same bedroom category. When you factor in that additional square footage, condos cost only about 10% more than their co-op counterparts.

Pro tip: You can use the StreetEasy Data Dashboard to find the latest median asking prices for condos and co-ops in NYC, and filter by borough or neighborhood.

That said, maintenance fees (known as common charges for condos) are another cost to be aware of as you decide between property types — and they tend to be higher in co-ops. In both condos and co-ops, these fees cover building upkeep, some utilities, and building staff salaries. But co-op maintenance fees also have to cover building insurance, an underlying mortgage, property taxes, and any other fees incurred by the cooperative, making them cost more. Condo owners pay property taxes separately; they’re not included in the monthly common charges.

There Are More Co-ops Than Condos in NYC

The Big Apple contains far more co-ops than condos. In fact, city estimates suggest there are twice as many co-ops than condos in NYC. The discrepancy can largely be attributed to the so-called co-op conversion boom of the 1980s, when developers converted an enormous number of rental buildings into co-ops.

Among listings on StreetEasy, however, you’ll probably notice a more even split between co-ops and condos at any given time. So while there may be more co-ops in existence, condos are just as readily available to potential buyers like you.

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