NYC is the only major US market where co-operatives still dominate pre-war housing stock. Buyers don't own real estate — they own shares in a corporation and a proprietary lease. The co-op discount (often 20-30% vs comparable condos) exists because of board approval, 2-year tax returns, 2x purchase price in liquid assets post-close, limited sublets, and flip taxes. For US-based primary residents who fit the profile, the discount can be real value. For foreign buyers, pied-à-terre owners, or anyone who might want to rent the unit in five years, a condo is almost always the right answer.
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NYC Condo vs Co-op: What Actually Matters in 2026
Co-ops are cheaper per square foot for a reason. Board approval, flip taxes, sublet rules, and why a foreign buyer will struggle to get past a prewar Park Avenue board. The trade-offs, and when the co-op discount is real value vs. a trap.