NYC Co-op vs Condo: What’s Better for Investment in 2025?

By Robert, NYC Real Estate Specialist

As a seasoned NYC realtor who’s been navigating this concrete jungle for over a decade, one of the most common questions I get from first-time investors (and even savvy buyers) is: “Should I invest in a co-op or a condo?” And honestly, it’s a fair question. New York City real estate is its own beast—and what makes sense in one neighborhood or building might be a total mismatch for another.

In this guide, I’m going to break down the co-op vs. condo debate as we head into 2025, giving you an investor-focused perspective that’s honest, practical, and sprinkled with real stories from my own client experiences.

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

Before diving into the investment side of things, let’s quickly review the fundamentals.

Co-ops (Cooperatives)

When you buy a co-op, you’re not actually buying real estate in the traditional sense. Instead, you’re purchasing shares in a corporation that owns the building. Your shares entitle you to a proprietary lease for your unit.

Co-op boards are known for their strict approval process, which includes reviewing your finances, conducting interviews, and sometimes even dictating whether you can rent out your unit.

Condos (Condominiums)

A condo is real property. You get a deed, just like when you buy a house. You can rent it out more freely, sell it without board approval (though the board can still have a say), and usually enjoy more autonomy overall.

So what does this mean if you’re investing in 2025?

Co-ops vs. Condos: The 2025 Investment Showdown

Let’s stack them side by side based on what really matters to investors.

1. Purchase Price

Co-ops are generally cheaper upfront than condos. On average, you can expect a co-op to cost 15-25% less than a comparable condo in the same neighborhood.

A client of mine from Toronto recently snagged a classic pre-war one-bedroom on the Upper West Side for $620K in a co-op. A comparable condo in the same area? Over $800K.

2. Rental Potential

This is where condos take the lead. Condos typically allow you to rent out your unit freely, whereas co-ops often require:

You to live in the unit for 1-2 years before renting
Limited rental duration (e.g., 2 years every 5 years)
Board approval for each tenant

If you’re eyeing rental income, condos are far more investor-friendly.

3. Appreciation Potential

Condos have historically appreciated at a faster rate. This is partly due to their broader buyer appeal—they attract both domestic and international buyers, and they’re easier to finance and resell.

That said, co-ops in established neighborhoods (like the Upper East Side or Brooklyn Heights) can hold value extremely well, and sometimes appreciate faster than newer condo developments with inflated prices.

4. Monthly Carrying Costs

Co-ops usually have lower monthly costs, as their maintenance fees cover property taxes, building expenses, and sometimes utilities.

Condos, however, have separate common charges and property taxes, which can sometimes be less predictable.

But here’s a catch: condo owners often have more control over rising costs since condo boards tend to be more transparent with their financials and reserve funds.

5. Financing Requirements

Getting a mortgage for a condo is usually easier, especially for non-resident or international buyers. Co-ops may require:

20-30% minimum down payment
Post-closing liquidity (e.g., 1-2 years of maintenance fees in the bank)
A debt-to-income ratio under 25-30%

In 2025, lenders are becoming more cautious again, so these co-op requirements can become deal-breakers for newer investors.

I had a couple from Singapore who were ready to drop $1.2M in all cash. They loved a co-op in Gramercy, but the board rejected them for being “too investor-oriented.” They ended up with a sleek condo in Hudson Yards, and it’s now rented at top market value.

2025 Market Trends to Watch

The NYC real estate market has changed since the pandemic years, and 2025 brings new dynamics into the mix.

Interest Rates Are Stabilizing (Finally)

With mortgage rates expected to stabilize around 5-6%, buyers are re-entering the market with more confidence. This makes financing a condo more feasible, especially for local investors.

Rental Demand Is Booming

NYC rental demand remains high due to:

Limited inventory
Increased remote-hybrid work
Influx of international students and professionals

Condos benefit directly here, while co-ops with strict rental rules miss out.

Short-Term Rental Crackdowns

If you’re thinking of buying for Airbnb, think again. NYC’s Local Law 18 essentially killed most short-term rentals in 2024 unless you’re a resident living in the unit.

This levels the playing field a bit, but long-term condo rentals are still a smart play.

New Development Pipeline

More luxury condos are being built in areas like Hudson Yards, Downtown Brooklyn, and the Lower East Side. This brings fresh inventory but also more competition.

Co-ops remain relatively static, which can make them more stable in high-demand neighborhoods.

Real Investor Scenarios (Who Wins?)

Investor A: Long-Term Buy and Hold, Looking for Steady Appreciation

Winner: Condo, for flexibility and appreciation

Investor B: Wants to Live in the Unit Part-Time and Rent When Abroad

Winner: Condo, due to relaxed rental rules

Investor C: NYC Local, Buying All-Cash for Retirement Income Later

Winner: Co-op, especially in classic neighborhoods with low turnover

Investor D: Foreign Buyer, Wants a Turnkey Investment

Winner: Condo — much smoother approval process and ownership rights

One of my clients from London bought a two-bedroom condo in Midtown in 2021. It’s now fully rented, generating nearly 5% net ROI annually. Meanwhile, his friend tried to buy a co-op and was denied twice by two different boards. Ouch.

Are There “Investor-Friendly” Co-ops?

Believe it or not, yes. There are co-op buildings that:

Allow subletting after 1-2 years of ownership
Don’t require interviews for re-sales
Accept LLC ownership in some rare cases

These are unicorns, but I’ve helped clients find them—especially in parts of Queens, Upper Manhattan, and select Brooklyn neighborhoods.

However, even investor-friendly co-ops come with more red tape than condos.

Pro Tips for Choosing the Right Property

1. Work With a Realtor Who Understands Investors

Many agents focus on the emotional aspects of buying. That’s great for primary buyers, but investors need someone who understands ROI, cap rates, and building rules.

2. Read the Building’s Financials

You (and your attorney) should review:

Reserve funds
Upcoming assessments
Sublet policies
Owner-occupancy ratios

3. Plan for Liquidity

Condos are more liquid assets, easier to sell or rent. If you might need to exit the market in under 5 years, go condo.

4. Think Neighborhood First

The best investment isn’t always about the property—it’s also the location. Look for:

Proximity to transit
Rising neighborhoods (e.g., Greenpoint, Inwood, Lower East Side)
Rental demand

So, Co-op or Condo: What’s the Verdict in 2025?

If you’re strictly looking at investment potential, condos are almost always the safer bet. They’re easier to buy, easier to rent, and easier to sell. The flexibility they offer far outweighs their higher purchase and carrying costs in most cases.

Co-ops can still be a solid option for local, cash-rich buyers who are planning for the very long term and are comfortable with restrictions. They’re less competitive, which sometimes means more negotiation power and a chance to build equity slowly in a great building.

Final Thoughts

Investing in NYC real estate can be one of the smartest financial moves you make—if you pick the right property type for your goals. As a local realtor who’s helped hundreds of clients (many from out of town), I always say this: Your property should work for you, not the other way around.

So, whether you’re eyeing a shiny new condo in Tribeca or a charming co-op in the West Village, let’s talk about your goals, timeline, and budget.

Need help choosing between co-op and condo for your next investment? I’d be happy to walk you through your options—no pressure, just good advice.

Because when it comes to NYC real estate in 2025, smart moves are all about strategy.