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The A,B,C’s of Parents Buying for “Kids” in NYC

01/21/26

As NYC prices soar, parents buying apartments for adult children is rising. Learn smart strategies for navigating co-ops, gifting, and condos with confidence.

Whether as a savvy estate planning strategy or an answer to Manhattan rents hitting new record highs, parents buying NYC apartments for their adult children has become a more frequent scenario in many of our recent transactions. But this type of purchase isn’t as straightforward as it would be in any other city, particularly in our ubiquitous “CO-OP” buildings. While these board-controlled properties have unique limitations on approved buyers, they also contain some of the city’s most desirable apartments. That’s why we take extra care and do additional planning for these familialy-facilitated deals before taking the leap. Here are three of our most effective game plans to get the job done.

A. CO-PURCHASING

You would be hard-pressed to find a co-op that allows a parent to be the sole owner while a child occupies the apartment - or, in reverse, allows parents to appear on the application without being recorded on the deed. That said, this does not relegate you to condos exclusively.

Siamese Twins
Many co-op boards allow “co-purchasing,” which simply requires that all parties who occupy, or whose income or assets are included to qualify for the purchase, are recorded owners. This structure works well for some families (some parents even pick a place with an extra room for themselves when they come to visit!), but it can trigger estate or residency, or tax implications for others. There are exceptions to every rule, and sometimes a co-op’s bylaws will be surprisingly accommodating, and your experienced agent will know which structures work and where. This is where professional guidance can be invaluable.
Gifting Letter

B. GIFTING

We often see parents gift a significant portion of the purchase price to their child, leaving their offspring responsible only for the monthly maintenance and little or no mortgage payment.

With a more reasonable monthly commitment, the young person’s salary is more likely to be sufficient to meet the requirements of the co-op board (which varies, but as a rule-of-thumb, housing expense should be no more than twenty-two percent of income), and the home can therefore be owned solely in the name of the child. While the individual lifetime gift tax exemption is currently up to fourteen million dollars, we always recommend that the accountants or attorneys of the gift-giver be consulted.

From the co-ops perspective, this must always be a “gift” and not a “loan” to the child. Although some families make their own behind-the-scenes arrangements, the gift-giver must always provide a letter promising that no repayment is expected, and also share “proof of the funds” that they are gifting. We will guide you through viable options for each given scenario.

C. CONDOS

One of the many reasons condos are more expensive than co-ops is the flexibility they offer in situations like this. Anyone can purchase the home with little scrutiny of their financial situation, and anyone can occupy the property.

While many buyers find this limits their choices (because they want a quintessential SoHo artist’s loft or a prewar fireplace in the Village and most of these options are co-ops) - condos remain the best choice for maximum ease and they are often the only viable option for international buyers, ultra-private individuals, or those with non-traditional income that doesn’t fit the co-op mold. Buying a condo can also allow the parents to provide a long-term investment for the child, even if they move elsewhere in the future.

BONUS BARRIERS

College

Certain buildings, particularly those near universities, may have bylaws that specifically prohibit parents buying for children, with the goal of preventing the building from becoming dorm-like. Some buyers try to “fudge” their profile by presenting an offer that claims the parents are purchasing a pied-à-terre, only to have the college freshman be the one actually moving in. But boards are on the lookout for this and can usually spot the subterfuge quickly. We prefer to find creative and transparent solutions for getting our clients into the home they want, with no room for error.

More restrictive co-ops, particularly on Park or Fifth Avenue or Central Park West, do not permit any of these scenarios at all. So we will steer you clear of these from the very start.

Now the deal is struck, contracts are signed, and it is time for the board application. We only let clients get to this point once we are certain that the purchase structure aligns with the building’s requirements, and then we proceed with extra care, knowing there may be additional scrutiny from the board. Regardless of how incredibly successful and established or even fully middle-aged the “child” may be, our 'watchful care' continues to create long line of happy homeowners.

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Carlin Wright

110 Fifth Avenue, 3rd Floor

New York, NY 10011

Phone: 917.275.4714

Email: [email protected]

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