The 501 Broadway project in downtown Santa Monica gives an idea of the scale of new housing supply in the city. The 8-story building will have 89 units, of which 18 are affordable housing units based on income criteria, while the rest are priced at market rates. The rent for market-rate units ranges from $3,255 to $6,641.

According to Apartments.com, there are 364 newly built units across Santa Monica. The overall rent in the city is around $2,528 for studios, $2,986 for one-bedroom apartments, and $3,876 for two-bedroom apartments, with a wide range from a low of $2,528 to a high of $7,036 depending on location and size.

New constructions come with certain benefits that match their premium prices. With the latest insulation and smart home features, utility costs are reduced, and many come with building warranties ranging from 1 to 10 years. While this is advantageous, if the property is a condo or apartment, the more community amenities like pools and gyms there are, the higher the HOA fees tend to be compared to older buildings.

On the other hand, older buildings present a different picture. In older neighborhoods close to the coast like Santa Monica, established commercial areas, walkways, and proven school districts provide significant advantages for stable homeownership. However, if a building is over 20 or 30 years old, there is a risk of major repairs such as plumbing or roofing that may arise.

On average nationwide, new constructions often carry a rent premium of 10 to 20 percent compared to older buildings. Given that Santa Monica already has a high overall rent level, this premium may feel even larger in absolute terms.

For investors looking at rental income, it's worth comparing the stable rental demand of new constructions with the relatively lower purchase prices of older buildings. Regardless of the choice, it's safer to assess the market based on actual yield, including vacancy rates and management costs, rather than making definitive price judgments.

As mortgage rates remain high, there is a trend of more households opting for renting rather than buying. In this situation, whether it's a new or older property, good listings tend to get quickly contracted, so it's important to act fast to check the conditions if you find a property you like.

In terms of climate, Santa Monica's coastal climate is relatively mild, so buildings are less prone to deterioration from extreme weather. However, corrosion of exteriors and windows due to sea breezes and humidity is a consistent maintenance issue for both new and older constructions.

When checking school districts preferred by Korean families, it's advisable to refer to ratings from GreatSchools or Niche, but keep in mind that school district boundaries can change frequently, so it's best to verify the assigned school for the specific address before signing a contract.

For families moving from other states, it's also important to consider California's unique property tax structure. Under Proposition 13, the purchase price at the time of buying becomes the basis for property tax, which can only increase by a maximum of 2 percent annually thereafter. Therefore, if a new construction is purchased at the recent price, the tax burden may be higher compared to neighboring older property owners.

Families newly immigrating from Korea may often consider roommates or shared housing in high-rent areas like Santa Monica. Some new buildings offer initial move-in promotions that discount the first month's rent, making it helpful to compare multiple listings.

When looking at older properties, it's wise to check the condition of the building management and the history of recent major repairs. If a building has recently completed roof or exterior work, it may mean fewer significant expenses for a while.

Both new and older constructions have distinct pros and cons, making it a market where choices can vary based on budget and priorities.

Tax and rental laws may differ by county, and this article is not investment advice. It is recommended to consult with a professional before making any contracts.