Relaxing the rules: Millennial buyers are prompting some co-op boards to loosen up

Co-ops want to bring building values in line with condos

New York Weekend Edition /
Jan.January 05, 2019 04:00 PM

(Credit: iStock)

Vying to lure in more young buyers, some co-op boards are loosening their rules.

Some boards are trying to ease requirements about approvals and subletting to make home values more in line with condos, Forbes reported.

“So many mindful co-ops are trying to act more like condos these days, so they can attract higher prices from a wider audience,” Compass agent Brian Lewis told Forbes. “I’ve never encountered a condo that wants to act more like a restrictive co-op.”

The changing mindset comes as millennial buyers have struggled to purchase co-ops. Obstacles include not being able to afford down payments and an influx of buyers flooding the market, the report said.

As Warburg’s Lisa Larson told Forbes, a decade ago, the main options for housing in New York City were to rent or buy a co-op. But with a rise in condo development, buyers have other choices now. About 80 percent of the city’s housing stock are co-ops.

Larson said her board opted to require the first two pages of tax returns, without the tax schedules. And it chose to nix the requirement for full bank and brokerage statements in a bid to increase the building’s value by upping buyer accessibility.

Martin Eiden, another Compass agent, said millennial buyers he’s worked with tend to seek diversity — which doesn’t necessarily align with how co-op boards function.

“Co-ops by their very nature want consistency, sameness,” he said. [Forbes] — Meenal Vamburkar


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
PHE at 51 Jay Street and 4 Hunts Lane (Compass)
Dumbo penthouse leads Brooklyn’s luxury market
Dumbo penthouse leads Brooklyn’s luxury market
605 3rd Street and Casper's Luke Sherwin (Leslie Garfield, Getty)
Firm offer: Casper co-founder pays $500K over ask in Park Slope
Firm offer: Casper co-founder pays $500K over ask in Park Slope
Housing prices broke records for the third consecutive month in May, surging 16.6 percent over May 2020 (iStock)
Nowhere to go but up? Home prices smash another record in May
Nowhere to go but up? Home prices smash another record in May
34-20 Junction Blvd in Jackson Heights and Shorewood CEO S. Lawrence Davis (Google Maps, Shorewood)
Shorewood plans 227K-sq ft mixed-use project in Jackson Heights
Shorewood plans 227K-sq ft mixed-use project in Jackson Heights
Soho’s zoning madness, such as artists-only lofts and a ban on ground-floor retail, may finally change with a proposed rezoning.
The shopping district that banned retail: Soho’s incoherent zoning
The shopping district that banned retail: Soho’s incoherent zoning
(Illustration by Alexis Manrodt for The Real Deal)
The Real Deal’s Prodigy exposé wins NY Press Club Award
The Real Deal’s Prodigy exposé wins NY Press Club Award
The penthouse in Lightstone's 40 East End with developer David Lichtenstein (Lightstone)
After early-July lull, Manhattan luxury deals are on the upswing again
After early-July lull, Manhattan luxury deals are on the upswing again
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...