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
The average price of a London home rose above 500,000 pounds, or roughly $685,000, for the first time. (Getty)
London home prices hit new high
London home prices hit new high
(Illustration by The Real Deal)
Americans bought 5.6M homes last year — the most since the bubble
Americans bought 5.6M homes last year — the most since the bubble
Randy Mastro and 21 East 83rd Street (Photos via Getty; Google Maps)
Former deputy mayor Randy Mastro, lawyer in Lucerne controversy, lists UES home
Former deputy mayor Randy Mastro, lawyer in Lucerne controversy, lists UES home
Overall, the number of housing units that started construction last year was up 7 percent from 2019. (iStock)
Residential construction had busiest year since 2006: MBA
Residential construction had busiest year since 2006: MBA
Common Projects sneaker designer Peter Poopat bought the home in December. (Getty, Brown Harris Stevens)
$6.5M Fort Greene townhouse sale breaks neighborhood record
$6.5M Fort Greene townhouse sale breaks neighborhood record
(iStock)
Homebuilder sentiment falls for second month in a row
Homebuilder sentiment falls for second month in a row
(iStock)
Homebuying up again, but rising mortgage rates depress refinancing
Homebuying up again, but rising mortgage rates depress refinancing
The two most expensive contracts signed last week were condos at One Prospect Park West. (Douglas Elliman)
Brooklyn luxury market roars back to life
Brooklyn luxury market roars back to life
arrow_forward_ios

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

Loading...