Co-ops generally reject purchasing in anonymous LLCs and make it nearly impossible for foreign buyers to purchase.

The strict nature of co-ops, coupled with a surge in shiny, modern new development condominiums across the city, is leading to a dramatic drop in co-op sales. 

Co-op sales priced $5 million and up fell nearly 20% in 2016 from the year prior. In the super-luxury category – co-ops priced $20 million and up – sales declined 25% YOY despite the fact that co-ops comprise 70% of Manhattan's owned housing units.

A great shift in what home buyers want. Condos allow for a more immediate buying process, and many of these ground-up new developments and conversions are full-service buildings with elaborate gyms, high-tech amenities, and on-site daycare and spa services. Co-ops are finding it harder and harder to compete.

The fact that co-ops have been falling out of favor, in the last three years especially, means that there are incredible deals for qualified buyers with patience. 

Of course, it helps to have a knowledgeable broker who knows their way around different co-op boards and can help to build a strong board package. That’s half the battle.

On average Co-ops are a more affordable option than their newer condo counterparts. The path to buying in a co-op building can be more arduous, but the value might be worth the wait if buyers are willing to make a commitment. 

Don’t forget, co-ops still account for some of New York’s most prized real estate, and that’s still very meaningful as a long-term investment.

But what about new data that shows such sharp sales declines in co-op buildings? For example, there were just 24 co-op sales priced at $5 million and higher on the Upper West Side of Manhattan in 2016 compared with 47 in 2014 – that’s more than a 50% landslide in just two years.

Does this not show that people are simply refusing to deal with co-ops, the troubling board process, and the lack of amenities at the older buildings, even considering the fancy zip codes?

Looking beyond NYC, the market for co-op apartments in Chicago also demonstrates weakness. The sale of co-op properties in Chicago are always a bit slower than condos ...and the 2016 market reinforced this pattern. 

The buildings are generally older with uniquely beautiful architectural details and wonderful interior space. They typically move more slowly due to the lack of agent knowledge, and that of potential buyers. “

Although the market may be slow for co-ops Biondi still see many benefits in purchasing one, The HOA fees are higher but conveniently include property taxes. 

The idea—in the Midwest—of buying shares instead of actual square footage is a common setback and the myth that everyone will know the potential buyer’s business becomes another deterrent. 

However, in reality, co-ops are well-managed, and only the management company knows the potential buyers financial status, so sensitive information is kept confidential. There are also no foreclosures in co-ops because everyone is in equal financial standing.

New development of co-ops buildings became quiet rear in recent years, however, we can still find some interesting projects being initiated. 

A great benefit for buyers of co-ops is that coops have more tools at their disposal to raise needed funds or to deal with a delinquent or objectionable apartment owner.  Coop boards, however, have a bad reputation when it comes to interviewing prospective purchasers and granting sales and subletting approvals. 

Consequently, condo unit owners have much greater freedom when it comes to selling or renting.  100 Barrow St., developed by Toll Brothers City Living, is a good example which combines the best of both insofar as it is a coop, but sales and sublets are treated like it is a condo.

History shows that real estate is cyclical. There are some really wonderful things about living in a co-op that are still attractive to a lot of people. For one, you know your neighbors, which is increasingly harder to do in a global city like New York. 

However, times are changing, and co-ops will need to find ways to change as well but they’re certainly not passé. In many ways, co-ops represent the most attainable luxury housing in the city, and because of that, they will never go out of fashion.”