Just outside downtown Denver, brick apartments built between the 1960s and 1970s are still quite noticeable. With low ceilings, thick walls, and local cafes and parks within walking distance, these neighborhoods have an atmosphere that is often absent in new developments. I want to first examine the actual market position of these older constructions.

The average rent in Denver for 2026 is projected to be $1,910, which is a 1.99 percent decrease from the previous year. This number simply means that the overall rental market in Denver is gradually shifting in favor of tenants.

Interestingly, the rental price gap between new and older constructions is not as large as the national average. According to related data, nearly half of the newly built apartments in Denver are listed at prices lower than the median rent for the entire metro area. Between 2022 and 2025, about 20,000 new units are expected to flood the Denver metro area, creating a competitive environment among new constructions, which has led to a situation where new developments are competing on price.

On a national average, new constructions often have rents that are about 10 to 20 percent higher than older ones. The New Construction Trends report from RentCafe and Apartment List supports this trend. Denver's deviation from this average can be attributed to the recent influx of new supply.

The structure of management fees is also worth examining. New constructions tend to have lower heating and cooling costs due to the latest insulation materials and smart thermostats, and for a certain period after construction, there is a warranty on the structure and facilities. However, these advantages do not necessarily contribute to lower rents, as the market situation of oversupply plays a more significant role.

If you plan to purchase new construction for rental purposes, it is safer to recalculate your returns considering vacancy periods and rental discount promotions. It cannot be assumed that rents will continue to rise.

This point may be favorable for tenants, but it can be interpreted differently from an investor's perspective. If you plan to buy new construction for rental, it may be difficult to achieve the expected rental income in an oversupply market.

The fundamental advantages of new constructions remain valid. Thanks to energy-efficient insulation and facilities, management costs tend to be lower, and for a certain period after construction, there is a warranty on the structure and facilities, reducing concerns about major repair costs. However, it is common for new condos or townhouses with many community facilities to have higher monthly management fees, known as HOA fees, compared to older constructions, which can be a burden.

Older constructions present the opposite picture. Spacious layouts, mature landscaping, and established school districts and transportation infrastructure are clear strengths. However, buildings over 20 or 30 years old may be approaching the time for major repairs to plumbing, roofs, or electrical systems, which can lead to unexpected expenses. Denver's climate, with its cycles of freezing and thawing in winter, also needs to be considered for older roofs and plumbing.

For families looking for preferred school districts, it is worth checking the reputations of schools in areas with a high proportion of older constructions, such as Aurora or Centennial. However, school district boundaries change frequently, so it is safer to refer to ratings from GreatSchools or Niche and verify the assigned school for the specific address before purchasing or signing a contract.

If you are moving to Denver from another state, it is easy to overlook that Colorado's property tax rates are assessed differently than those in your previous state. Property taxes and homeowners insurance rates vary by county, so it is advisable to check these in advance when budgeting.

In summary, the current Denver market does not guarantee that new constructions are always expensive or that older ones are always cheap. It seems realistic to consider your budget, management fee structure, and desired neighborhood atmosphere when making a decision. This article does not constitute investment or legal advice, and it is recommended to consult with a professional before finalizing any contracts.