At 550 Vanderbilt condo unit, a price cut takes a studio to $1,999, well into "affordable" territory

Sure, there's a pandemic, and that's played havoc with demand for expensive apartments, especially ones that face toward a courtyard, likely with views of--and sounds from?--the adjacent construction site west on Dean Street, where buildings should rise by 2023.

But it's still notable that one studio apartment at the 550 Vanderbilt condominium has seen a drastic price drop, from $2,300 to $1,999.

Such a montly rent is well below middle-income "affordable" rents under New York City guidelines, which this year are $2,155 for those earning 130% of Area Median Income (AMI) and $2,753, for those earning 165% of AMI.

When leasing began in 2017 at "100% affordable" 535 Carlton Avenue down the block, studios at 165% of Area Median Income rented at $2,137, and at similar 38 Sixth Avenue, studios at 165% of AMI rented at $2,121. Three years later, those rents should have gone up slightly. 

That said, the 550 Vanderbilt studio rent is not subject to rent stabilization, unlike at the "affordable" buildings.

"Affordable" = income-linked, or income-restricted, or income-targeted or (mostly) below-market
"Affordable" (too often) ≠ available to most New Yorkers needing lower-cost apartments

— Norman Oder (@AYReport) October 29, 2020

Apt. 626

Camouflaging price history?

And perhaps to camouflage the price history of Apt. 626, which had been rented after being listed at $2,600 in 2017 and $2,750 in 2018, the marketers are presenting it as--voila!--Apt. 626A.

This unit has no price history beyond the $2,300 it was listed for on October 15, then slashed two days later to $1,999.

Apt. 626 was listed at $2,300 on October 10, then taken off market, as indicated at right, apparently to be replaced by the new listing.

A unit for sale

Meanwhile, Apt. 626 is for sale, priced at $639,999. 

Given that it sold in May 2017 for $641,497, a slight premium over the listing price of $630,000, it apparently didn't turn out to be a lucrative investment. But the monthly common charges are $514 and the taxes are all of $17, so monthly costs beyond the mortgage loan are low.