THE CO-OP DISCOUNT

Cooperative and condominium housing differ in several ways that might be expected to influence their pricing. Most but not all of these diff erences argue for a higher valuation for condominiums. Hedonic equatio ns estimated on a national sample indicate that the price differential on the average condo/co-op unit in 1987 was 12%. Condos maintain a pr ice premium under a variety of specifications, although its magnitude depends on the bundle of attributes being priced.