At 18 Sixth Ave. (aka Brooklyn Crossing), market-rate rents getting closer to (allowable, but not actual) affordable rents

As I wrote recently, rising Area Median Income (AMI) means elevated city guidelines for "affordable" housing, which housing advocates say are way out of sync with the actual incomes of city residents, especially those who rent their housing.

Indeed, as shown in the graphic at right, under 2022 AMI guidelines, a studio apartment could rent for $3,035 to those earning 130% of AMI, or $3,852 to those earning 165% of AMI. 

The two most recent Atlantic Yards Pacific Park buildings to open, 662 Pacific St. and 18 Sixth Ave., and likely the next two, 595 Dean St. and 615 Dean St., have their affordable units limited to those at 130% of AMI.

2022 figures

Those rising AMI figures, of course, are easily in the realm of market-rents, especially for units that aren't in new, highly amenitized buildings--and even for the latter, so it's not surprising that developers don't push for the maximum..

Consider Unit 4104, a market-rate studio at 18 Sixth Ave. (B4, aka Brooklyn Crossing), the monthly rent of which has been reduced to $3,195 from $3,545, as shown in the screenshot at right, from StreetEasy.

That $3,195 figure is in between the maximum "affordable" rents at the two thresholds. 

That said, when the 18 Sixth housing lottery was announced this past January, under the lower 2021 AMI guidelines, the maximum allowable rent for a studio was $2,263, while the developers chose to set rents at $1,905. Similarly, at 662 Pacific St. (B15, aka Plank Road), they set maximum rents for a studio at $1,547, apparently aiming for speed of uptake.

Past buildings

Note that half the units at two "100% affordable" Atlantic Yards/Pacific Park buildings, 535 Carlton (B14) and 38 Sixth Ave. (B3), are aimed at those earning up to 165% AMI, but the initial rents were lower, given that AMI was so much lower.

In 2016, 535 Carlton studios rented for $2,137 and in 2017 38 Sixth studios rented for $2,121, with subsequent annual increases keyed to the Rent Stabilization Board guidelines.

Same for the fraction of units at 461 Dean (B2) that were aimed at those earning up to 160% of AMI. In 2016, the most expensive studio rented for $1,996.