The Death of the Co-op? Hardly. But new Condo development abounds.
The Real Deal has an article on the decreasing amount of new coop development permits filed since the year 2000. It also discusses that the majority of new coops being developed are condops. Condops are co-op residential buildings being built with commercial condo properties at the base of the apartment building so the building finances will benefit from the for profit business that occupies the condo property. You see this at dentist offices on the Upper West Side on the main floor of some gorgeous coop on Central Park West for example. The post also suggests that coops are no longer popular.
It is true that many new condo developments are being constructed rather than coops. These extraordinary, modern architectural gems are being created with gorgeous new floor to ceiling windows, high-beamed ceilings and futuristic kitchens.
My firm, Stribling & Associates is listing several new condo developments: for example, in downtown Manhattan we have: The Shephard, at 275 West 10th, in the West Village, Six Cortlandt Alley in TriBeCa, and 360 Central Park West (360 CPW) and in Brooklyn: 345 Carroll Gardens . Our new developments offer incredible amenities and style.
It also true, condos have appreciated in value much more quickly over the years. This has been an incentive for investors. The less financial disclosure restrictions have also been attractive to buyers & investors. As well as less restrictive rental policies for investors, therefore, enabling them to make a significant in some cases, return on their investment.
Yet, coops still comprise of approximately 70% of the non-rental housing stock in New York City. Originally created for the sake of community in a huge, anonymous city, some coops do have challenging restrictions to many buyers. Most require 2 or more years of monthly carrying costs in liquid assets, post closing, and have far more restrictive attitudes about renting. The purpose behind these restrictions is to keep the building more community based and less transient, some may also argue more secure. You know your neighbors.
As the article states, some coops have become less restrictive to compete with condos. One positive attribute for coops, you can still purchase well-valued co-op home in New York City in many beautiful historic buildings like my listing in Tudor City that is contract for a good price. Also it is important to remember that New York City real estate market, suffered a lot less then other markets nation wide after the financial crisis and the collapse of Lehman due to the fact that the majority of housing stock is in coops with perhaps at that time, tighter qualifications then those offering mortgages.
So is the coop about to die? Hardly. Yes, new condos are being built at a faster rate. Depending on your needs and price point, there will still be a demand for coops and condos. Here is more of the data in the real deal article.
Please feel free to call or email if you are interested in buying a new home, selling your home, want a valuation on your home, or want to rent your property or want real estate advice. I can be reached at (646) 515-9417 or firstname.lastname@example.org
Photo Credit: Gorgeous living and dining room at 360 CPW