Colorado Springs is home to many national parks and forests. The natural beauty makes it a hot spot for sightseeing, adventures and, over the last few years, relocating. Located at the foot of the Rocky Mountains, it’s no wonder this city’s real estate market continues to grow.
Current Colorado Springs Market Conditions
- There has been a steady incline in households as well very healthy increases in both rental and home sale prices.
- Although construction costs are up, construction jobs and builder sentiment continue to rise.
- Employment in this city is also on an upward trend.
Buying a House in Colorado Springs
Colorado Springs Home Prices
Colorado Springs median home value: $420,000
National average: $371,000
Colorado Springs has seen amazing growth in home values over the last several years. Year over year they have seen an impressive jump of 23.5% — even higher than the national average of 22.4%. Homes are selling, on average, almost 5% over listing price and within just a few days. The real estate market is booming and looks like it’s going to stay that way for a while.
Colorado Springs Housing Supply
The Colorado Springs area has a major shortage of homes. As with most of the country, the demand is high and the supply is low, driving prices up for home buyers. For sellers, it’s a great time to sell. Multiple-offer situations and above asking offers with little to no contingencies are common right now. Just remember — it’s a great time to sell if you have somewhere to go. Otherwise, you are right there with everyone else, competing for the next house.
Buying a Rental Property in Colorado Springs
The rental market in Colorado Springs has always been strong. It’s a vacation getaway spot, loaded with exciting things to do and see. Now, however, the demand is even higher for rentals as travel bans have been lifted and travelers are looking to live their lives again and explore what Colorado Springs has to offer. Fresh air, hiking trails, rafting, historic sites and more are pulling people to this city. Having a rental property in this area will quickly get you tenants willing to pay top dollar.
Colorado Springs Rental Prices
Colorado Springs median rental price: $1,637
National average: $1704
Rental properties have seen an impressive increase in prices over the last several years. Compared to the national average of just a 3% increase year over year, Colorado Springs is over triple at a 10.1% increase. This means if you have a rental property, you are doing great. If you want to invest, it’s an excellent time. You will pay more initially because houses have also greatly increased in prices, but with this trend, you should see your money back sooner than ever.
Colorado Springs Rental Vacancies
Colorado Springs rental vacancy: 3.21%
National average: 6.8%
The rental vacancy average for Colorado Springs is less than half the national average. This is impressive for the real estate market in this city. It has seen a rapid decline in vacancies in the last few years. Investors looking to purchase rental properties can assure themselves that when looking at properties in this thriving city, their rentals will go quickly and for a competitive price.
Colorado Springs Foreclosures
Colorado Springs foreclosure rate: 0.1%
National average: 0.3%
The foreclosure rate for Colorado Springs has stayed at 0.1% for the last several years. The national average has seen a major decrease in foreclosures over the past few years, but Colorado Springs has remained consistent since 2018. The city’s foreclosure rate has been lower than the national average for many years, which means investment opportunities sound promising. Homes hold their value, and people want to buy and rent here, as well as stay for a prolonged period.
You can view current Colorado Springs foreclosure listings or search below.
Colorado Springs Foreclosure Listings
Colorado Springs Neighborhoods
A popular suburban neighborhood in Colorado Springs is Gleneagle. This is an established neighborhood with homes built from the 1970s to the 2000s. The homes are single family and townhomes, ranging from 3 to 5 bedrooms and mostly owner occupied. The majority of these owners are married and highly educated. This wealthy neighborhood has impressive homes, great schools and a community feel that attracts professionals with families.
The Black Forest neighborhood in Colorado Springs is a rural town made up of larger, more expensive homes. These homes are more expensive than 91.5% of other U.S. homes, averaging $727,589. The rental prices are more than $3,000 a month; however, these homes are almost completely owner occupied. Married people with families and professional jobs mostly make up this town.Sales and service jobs also are part of the mix. These families also generally own more than 4 cars which is more cars per household than over 95% of other U.S. households.
Fort Carson is a suburban town consisting of 100% rental property made up of mid-sized single-family homes and small apartment buildings. The vacancy rate is an impressive 0%.
Most of the tenants that live here are prospective or current college students. Interestingly, the occupations in this town are about half military employed and half sales and services. Residents enjoy the walkability, safety and quality of life this town has to offer. This neighborhood also enjoys a 0% poverty ranking.
Rock Creek Park is another great pick for a suburban neighborhood in Colorado Springs. Homes average around $521,118 for sales and just $1,510 per month for rentals. More active military members live here than in 97.9% of the country, making it a popular spot for military families. This is an upper-middle-income neighborhood, with a range of occupations and ethnicities.
Colorado Springs Economic Condition
Last year hurt the economy of all big cities, but Colorado Springs is on its way to a major comeback. Employment opportunities are rising, and the number of households is steadily increasing.
Colorado Springs Unemployment
Colorado Springs unemployment rate: 6.7%
National average: 6.1%
The unemployment rate for Colorado Springs is close to the national average. But after seeing a spike in 2020, unemployment rates nationwide are falling at a faster rate. While the national unemployment rate dropped 8.7%, Colorado Springs saw an increase of 1% year over year. On the plus side, the city’s employment rate is up almost 30%. Businesses opening back up and an increase in travel have helped the employment rates grow and get closer to normal.
Colorado Springs Top Employers
The largest industry in Colorado Springs is the military. Fort Carson is a U.S. Army base employing the most people — more than 15,000. Other popular employers in this industry include The U.S. Air Force Academy and Fort Peterson Air Force Base. The military employs nearly 20% of the workforce in Colorado Springs.
Hewlett Packard, combined with several other major electronic companies, employs upwards of 10,000 workers. Being a center for space research and finding major growth in the aerospace industry, it’s only natural that high-technology firms are needed in Colorado Springs to further develop projects. This luckily brings jobs and professionals to the area.
Another major industry worth mentioning is tourism. While tourism creates jobs and helps the economy grow, it also has brought more and more people to Colorado Springs looking for a permanent destination. With millions of visitors per year and steady growth in population over the last several years, it seems clear that people want to live where they vacation. With natural and man-made attractions, the tourism industry has proved to be an important part of the economy and ongoing employment.
The Bottom Line on the Colorado Springs Real Estate Market
Colorado Springs is definitely a market that is continuing to grow and flourish despite last year's setbacks. Home sale prices and rental prices are rising beautifully, demand is high, and employment rates are bouncing back. Increased travel and economic conditions are helping Colorado Springs continue its uphill climb after 2020. Keep this popular city on your radar for investments, vacations and even relocations.