The New York City co-op market has witnessed a significant transformation, especially when it comes to the ever-elusive acceptance by building boards.
One recent incident highlighted this shift when Livvy Dunne, a 22-year-old social-media influencer, found herself at the center of a high-profile rejection after the board of an Upper West Side co-op blocked her from purchasing a three-bedroom apartment that was once owned by Babe Ruth.
Dunne, a former college gymnast, expressed her dismay to her TikTok followers, sharing that despite her financial readiness and desire for the apartment, the board’s decision clearly indicated that having the money to buy does not necessarily equate to gaining entry into Manhattan’s most desired residences.
For decades, the narrative of celebrity co-op rejections was well-documented, with numerous notable figures being turned away.
Stars like Gloria Vanderbilt, Ron Perelman, and Diane Keaton faced the peculiarities of New York’s real estate market, wherein their fame and wealth often did not shield them from rejection.
Barbra Streisand, for instance, attempted to buy an apartment in the Upper East Side during the late 1960s but faced repeated setbacks, being turned down by various co-ops due to concerns over her Hollywood lifestyle and social status.
Even with endorsements from influential figures such as Governor Nelson Rockefeller and Mayor John Lindsay, she was unable to secure a place in her desired buildings, often facing prejudice due to her Jewish heritage, marital status, and profession as an actress.
This trend of rejection extended to others as well; Peter Lawford and Patricia Kennedy were similarly turned away from various co-ops due to their political affiliations, reflecting the biased decisions of boards that often preferred privacy and selectivity over inclusivity.
Streisand eventually settled into her Central Park West triplex, which was more permissive in its board requirements compared to buildings like River House.
However, even renowned celebrities faced hurdles; Mariah Carey was denied the opportunity to purchase Streisand’s triplex, with board members citing concerns over potential party-hosting and influx of guests should she move in.
The desire for downtown condos became more prevalent as many affluent individuals opted for properties that allowed greater freedom in their ownership terms.
Uptown co-ops, once the pinnacle of exclusivity, began to struggle with prolonged vacancies and decreased desirability, leading many buyers to bypass traditional co-ops in favor of more lenient luxury condominiums.
Times have seemingly changed, as the rigid co-op boards of the past have loosened their reins, allowing for a more diverse array of buyers, including younger professionals and those with unconventional income sources.
Once stiff requirements regarding pets, subleasing, and financing have softened, with certain co-ops now accepting LLCs and even offering flexibility in construction timelines.
While prejudices still linger, especially regarding ethnic and economic backgrounds, outright discrimination has largely dissipated, with more boards focusing on the financial viability of applicants rather than their social standing.
Brokers have observed that the formerly stringent criteria, which could include needing to be personally acquainted with current residents, are being replaced by a more streamlined application process, allowing an array of wealthy individuals a chance at co-op living.
Many co-ops along the Upper East Side have begun to realign their policies closer to those found in buildings on Central Park West, which have historically been more accepting of entertainers and those with unconventional wealth.
For instance, buildings like 740 Park Avenue represent an evolution toward more cash-driven buyers, prioritizing substantial financial backing over previous social standing requirements.
Furthermore, some of the elite co-ops previously revered for their exclusivity, such as River House, have become less sought after due to a combination of outdated apartment styles and evolving neighborhood desirability.
Current residents of these co-ops reflect a willingness to accept a broader range of affluent buyers, with the psychological weight of maintaining exclusivity lessening in light of the economic realities that today’s buyers face.
At the same time, some buildings still cling to their historical reputation, resulting in obscure rejections based on arbitrary standards that new buyers find difficult to interpret.
Consequently, recent high-profile rejections have highlighted the ongoing struggles of prospective buyers who do not fit the traditional mold or those whose wealth comes from novel sources, such as social media and technology.
Many co-ops still enforce stringent guidelines, with a focus on who they believe will uphold their community standards.
High-net-worth individuals, particularly those perceived as young or with unconventional financial backgrounds, often face the most challenges, leading to speculation that the finish line for approval may be shifting further away as more affluent buyers enter the market.
As co-op regulations evolve, the elevated exclusivity and storied histories of buildings like 820 Fifth Avenue and the San Remo have begun to blur, reflecting a wider trend towards acceptance in more traditional buildings of the past.
Some historic co-ops, like 960 Fifth Avenue, maintain strict financial qualifications and rejection criteria reminiscent of previous decades, emphasizing their preference for buyers with established wealth and legacy connections.
The landscape is changing, and while some boards remain difficult, particularly in lesser-known co-ops, the general trend points to a gradual relaxation of historic norms that have defined Manhattan’s real estate market for so long.
As the definition of who qualifies as a ‘desirable tenant’ continues to shift, those looking to buy in New York City’s exclusive co-ops must navigate a complex interplay of finances, social networks, and changing regulations.
image source from：curbed
