Hi Brian,
Choosing "Address Location" as the Preferred Location Type is just that, a preference. In those cases where a rooftop location does not exist, the World Geocoding service will fall back to the next best available match level. At the same time, the preference does not act as a filter to exclude all matches that are not rooftop.
One option for you is to move into the Category parameter and expand the Address checkbox and then click "Point Address" as the sole selection. This will limit the type of responses you will get for your requests. Another option is setting up a locator view for your Org in ArcGIS Online. In the view, you would select the geocoding constraints that work best for you.
Your observation that NYC should have better building and parcel locations is spot on, and is a continuous conversation that Esri has with its data providers.
