Monday, February 27, 2017

Photo: 100 Barrow, one of the few new development Co-op projects in NYC today (Copyright Forbes)
Why Co-Ops May be a Thing of the Past? 

Co-ops seem to be synonymous with historic New York and some of the greatest addresses in the city. Co-ops comprise 70% of Manhattan's owned housing units, but it seems that the difficult housing boards, stringent renovation rules and difficulty for foreign buyers to purchase has started to deter buyers. Especially now when there are more new developments in the city. Omri Barzilay investigates this new trend in his article for Forbes Magazine:

"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. In fact, Stribling and Associates, a leading residential brokerage firm in NYC, found that 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.

Read more here