The Latest Trends in the Colorado Springs Real Estate Market

With the ability to work from home and a renewed focus on a healthy work-life balance, a growing number of people are looking to Colorado Springs, CO as the perfect locale to relocate. Renowned for its stunning backdrop boasting colorful nature vistas and storied history, including serving as inspiration for the song “America the Beautiful,” Colorado Springs lives up to every expectation.

Located at the foot of Pikes Peak, just 70 miles south of the state’s most populous city, Denver, Colorado Springs is surrounded by stunning mountains and a large array of unique neighborhoods and attractions. Encompassing about 195 square miles amid approximately 18,360 acres of parkland, Colorado Springs is a nature lover’s paradise and is home to an estimated population of under 500,000 residents as of 2021.

Among the myriad of reasons Colorado Springs ranks #2 by U.S. News in 2022-2023  is that the city enjoys a cost of living 6% lower than the national average and 16% lower than neighboring Denver. In a city growing as rapidly as Colorado Springs, this cost of living will likely fluctuate in the not-too-distant future. Here are some additional trends and statistics to look at as you consider a move to Colorado Springs.

As more people look to call Colorado Springs home, one of the first questions asked is what home prices are like in this highly desirable city. Though a variety of factors lend to current market conditions, the cost to live in Colorado Springs depends largely on the neighborhood you choose, but for many, home prices in Colorado Springs are reasonable in comparison to the national average.

The current Colorado market is hot, with the median list price for homes in Colorado Springs at $450,000 based on data reported in April, a trend moving up 14.5% year over year, according to real estate experts. Buyers can expect to see a median listing price per square foot at or around $213, as sale prices remain strong and the median sale price reflected at $535,000.

Current data shows typical home value increased exponentially, with a rate of 27% in the last year alone. For those looking to invest, now is an optimal time to purchase Colorado Springs luxury homes as property values are likely to continue increasing.

It’s estimated the number of single-family homes and condo townhomes for sale increased 44% from May to June 2022, as median home sale prices increased more than 10% throughout Colorado. Industry experts suggest this may be a reflection of home buyers adopting a more cautious attitude about buying, however, the reality is that there is still a large swath of buyers driving demand for housing despite key variables such as summer travel, inflation, rising gas prices, and increased interest rates.

While the buyer experience has improved, it is still a seller’s market. As the market adapts to an increase in the availability of homes, buyers can rest easy knowing there are improved opportunities to get a home in Colorado Springs and its neighboring communities.

For those looking to relocate to Colorado Springs, it’s important to highlight the city offers more affordable rental costs and greater availability in large part to the high number of colleges, universities, and military bases in the area. While most residents tend to own their homes, 36% of households in Colorado Springs are renter-occupied.

Based on June 2022 data, the average rent for an apartment in Colorado Springs, CO is $1,190 and a 22% increase in comparison to the previous year. Over the previous month, the average rent of a studio apartment in Colorado Springs remained flat, while the average rent for a 1-bedroom increased by 1% to $1,190. The average rent for a 2-bedroom apartment remained flat.

For those new to the Colorado Springs area, among the most expensive neighborhoods for apartment rentals are Briargate, Northgate, and Central Colorado City. More affordable neighborhoods for apartment rentals include East Colorado Springs, Southeast Colorado Springs, and Northeast Colorado Springs. At a glance, expect the following rental trends in Colorado Springs:

The population growth of Colorado Springs has emerged slightly ahead of new home construction, as housing permits in the Colorado Springs real estate market aren’t at the same levels as in previous years. This, in part, explains one of the many reasons home prices have increased more than 40% in the past five years and is one of the most active housing markets in the country.

While Colorado Springs reflects a diverse buyer pool, Millennials are among the biggest group buying houses today in Colorado Springs. Many within this group look to purchase homes in walkable areas and access to public transit and value practical homes over size.

This signals that well-designed condos and duplexes are as attractive as the larger homes in the suburbs. A limited supply of homes on the market, however, is allowing for prices to increase faster than the rate of inflation, and a near-total lack of homes with negative equity in the Colorado Springs housing market is largely one of the reasons prices increase so quickly.

For those looking to invest in a hot market, the Colorado Springs real estate market contains various large populations of renters, excellent reasons for people to relocate from neighboring areas and across the country, and a bevy of factors that promise to drive long-term growth.

The ten neighborhoods in Colorado Springs with the highest real estate appreciation rates since 2000, according to Neigborhoodscout.com, includes Fort Carson Southwest; Fort Carson; Fort Carson South; Fort Carson West; Fort Carson Northwest; Spring Creek; Old Colorado City; Lowell; Patty Jewett South; Southeast Colorado Springs.

Interested in exploring Colorado Springs homes for sale. Contact our Colorado Springs Realtor Team at Strategic Property Advisors.