5 Biggest Myths of Buying a Home in New York in 2025 — Dispelled by Experts
Written by
Martin Dasko
Edited by
Amber Barkley
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Data from Redfin shows that home prices in New York increased 6.9% from November 2023 to November 2024, with a median sale price of $522,800. While most people are aware that the New York real estate market can be pricey, it’s not impossible to buy there — but certain misconceptions need to be addressed.
These are the five biggest myths about buying a home in New York, dispelled by real estate experts.
Condos and Co-ops Are the Same Thing
Ronald French, a real estate investor and the founder of French Investments, pointed out that a common misconception about buying property in New York is that there’s no difference between a condo and a co-op unit.
What’s the Truth?
“Condos offer full ownership of your unit and come with more flexibility, particularly if you plan to rent out the property in the future,” French said. “Co-ops, on the other hand, involve owning shares in a corporation, with board approval required for purchases and even resales.”
A co-op will have stricter rules and limitations, such as subletting restrictions and possibly higher upfront financial requirements before purchase. However, a co-op can be more affordable than a condo-type property in some communities.
You’ll want to take some time to understand the difference between these units. Your choice will depend on your financial goals, lifestyle and future real estate plans.
New York City Real Estate Is Exclusively for the Ultra-Rich
According to Sarine Atamian, the vice president of brokerage operations for Engel & Völkers New York City, another misconception about buying real estate in New York City specifically is that this area is exclusively reserved for the ultra-rich.
What’s the Truth?
“There’s a wide range of homes available, from co-ops and condos to single-family homes, with varying price points across boroughs,” Atamian said. “The myth that someone needs to be ultra-wealthy to buy in New York City often overshadows the diversity of opportunities available across neighborhoods, price points and property types.”
Even though housing prices are often higher in the city, various real estate options are still available. You can choose to buy a condo or look into a starter home in a developing community if you can’t afford the prices in the popular areas.
The Buying Process in New York City Is the Same as Everywhere Else
Another common myth about purchasing property in New York City is that the process is the same as in other parts of the country.
What’s the Truth?
Atamian said New York City has unique practices, such as the prevalence of co-op purchases, board approval requirements and specific attorney involvement in real estate transactions.
She added, “People assume the process in New York City is rigid and impersonal, but it’s actually a highly nuanced journey requiring expert guidance tailored to each buyer’s unique goals.”
You Need a 20% Down Payment To Buy a Home
According to French, the idea that you need a 20% down payment saved up to buy a home is one of the oldest real estate myths, especially when it comes to purchasing property in New York this year.
What’s the Truth?
“While putting down 20% can help you avoid private mortgage insurance (PMI), it’s far from a requirement,” French explained. “In fact, there are numerous programs available, including FHA loans, which allow down payments as low as 3.5%.”
If saving for a sizeable down payment in New York feels intimidating, you shouldn’t let this hold you back, because being financially prepared is more important. Focus on building your credit score, stabilizing your income and striving to save up a decent amount of money.
If you’re not able to save the full 20% for a down payment, there are lenders that will still work with you.
It’s Better To Wait for the Market To Crash
Many buyers are holding off on buying a home in New York, because they’re hoping for a market crash that may never come.
This is a popular misconception about buying property — but you’re not necessarily better off waiting for the market to crash to find a lower-priced home.
What’s the Truth?
French said, “Historically, New York’s real estate market has proven resilient due to strong demand and limited inventory. Even during economic downturns, New York properties often retain value better than in other markets.”
Instead of trying to time the market, focus on finding a home that fits your budget and preferred lifestyle. It’s important to remember that real estate is a long-term investment. If you enter the market in 2025, you can start building equity this year instead of waiting for a crash that may not come.
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