In today’s market, buyers are paying a hefty premium for new condos. Recent reports show new construction units in NYC selling for anywhere from 15–65% more than older apartments. The draw? Shiny amenities, modern layouts, and the appeal of “never lived in” space.
For condo and co-op boards in older buildings, this trend can feel discouraging. But resale values in established buildings don’t have to lag. With thoughtful planning and investment, older properties can stay competitive and even stand out.
Why new construction commands higher prices
New condos market themselves as turnkey luxury. Developers know how to package features today’s buyers expect, including:
- Modern layouts. Open kitchens, larger bathrooms, and better closet space.
- Amenities. Fitness centers, roof decks, lounges, playrooms, and co-working spaces.
- Efficiency. Better insulation, updated HVAC, smart-home features, and energy-efficient appliances.
- Style and branding. Developers invest heavily in marketing and design to make new buildings feel aspirational.
For many buyers, these perks justify paying significantly more than what they’d spend on a resale apartment in an older building.
What this means for older condos and co-ops
The gap between new and older buildings is widening, and it has real implications:
- Perceived value. Outdated common spaces, aging infrastructure, or deferred maintenance can make older buildings seem less desirable.
- Resale pressure. If a nearby new development offers sleek finishes and flashy amenities, sellers in older buildings may feel compelled to cut prices.
- Co-op challenges. Co-ops already have a smaller buyer pool due to stricter approval processes. Competing with luxury condos requires emphasizing stability and value.
Still, older doesn’t mean less valuable! Many prewar and postwar buildings have larger layouts, better construction quality, and prime locations. Boards just need to make sure those strengths shine through.
How boards can keep their building competitive
1. Refresh curb appeal and common spaces.
First impressions matter. Simple updates like fresh paint in hallways, upgraded lighting, or new lobby furniture can dramatically improve how a building feels to buyers walking in for the first time.
2. Stay on top of infrastructure.
A well-maintained roof, elevator, or façade reassures buyers that they won’t face large assessments right after closing. Deferred maintenance, on the other hand, can tank values. See our guide on the hidden costs of deferred maintenance for why catching up later is always more expensive.
3. Strengthen reserves.
A healthy reserve fund signals financial stability. Buyers and their attorneys look closely at a building’s financials before making an offer. Boards that plan ahead and contribute consistently to reserves are more likely to protect resale values. Our reserve fund guide outlines best practices.
4. Add lifestyle touches where possible.
Not every building can add a pool or gym, but smaller improvements still count. Converting unused space into a package room, upgrading laundry facilities, or adding a bike rack can go a long way.
5. Communicate your building’s value.
Boards and brokers can highlight what makes established buildings special: larger layouts, lower carrying costs, long-term neighbors, and proven management. For co-ops, the sense of community and stability can be just as appealing as flashy amenities.
What boards should consider
Competing with new development doesn’t mean trying to match it amenity-for-amenity. It’s about protecting your building’s strengths:
- Budget wisely. Decide when to invest in upgrades and when to focus on maintaining core infrastructure.
- Engage residents. Improvements are easier when owners understand how they support resale values.
- Govern responsibly. Buyers look for well-run buildings. Boards that manage finances transparently and make decisions with the community’s best interest in mind stand out. For a refresher, see our guide to fiduciary responsibilities of board members.
The takeaway
New condos will always come with glossy amenities and premium prices, but that doesn’t mean older buildings can’t compete. Boards that invest in upkeep, refresh common areas, and highlight the value of established communities can hold their ground and, in many cases, offer buyers something new developments can’t: history, character, and a true neighborhood feel.
