March 08, 2025
Manhattan real estate is known for its ups and downs, but if you step back and look at the big picture, apartment prices have been surprisingly stable over the last decade. The real story isn’t just about market fluctuations—it’s about the growing divide between condos and co-ops.
New development in Manhattan is overwhelmingly made up of condominiums. These properties tend to be larger, taller, and packed with luxury amenities, attracting high-net-worth buyers who are willing to pay a premium for modern finishes, better views, and more space. Over the past decade, the average condo price in Manhattan rose by 15.2% to around $2.84 million.
For buyers who want flexibility (such as the ability to rent out their unit more easily), condos are the preferred choice. Their popularity has directly impacted the co-op market, particularly at the higher end.
Co-ops are still a staple of Manhattan real estate, offering a lower-cost entry point for buyers willing to navigate the more restrictive purchasing process. While the median sale price for co-ops has increased at a similar rate to condos (around 9-10% over the last decade), the average price actually dropped by 1.3% to $1.33 million.
One of the most telling trends is the price shift for larger co-ops. While smaller co-ops like studios have seen price gains (rising from $390,000 to $430,000), larger co-ops with at least four bedrooms have dropped from $5.05 million to $3.7 million. Simply put, high-end co-ops are struggling to compete with modern condos.
If you’re looking to buy in Manhattan, your decision between a condo and a co-op may come down to budget and lifestyle. Co-ops remain a good option for buyers looking for affordability and a more stable long-term investment. But if flexibility, new construction, and modern amenities are a priority, condos continue to dominate the luxury market.
For sellers, particularly those with high-end co-ops, pricing competitively and marketing strategically are more important than ever. With new condo inventory consistently hitting the market, co-op sellers may need to adjust expectations or highlight unique features to attract buyers.
While the Manhattan market always has its cycles, the long-term trend is clear: condos are driving the luxury market, while co-ops remain an appealing option for more budget-conscious buyers.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
