Best Real Estate Investment Areas in Colorado Springs (2025)
Strategic Property Advisors February 7, 2025
Strategic Property Advisors February 7, 2025
Colorado Springs is increasingly recognized as one of the strongest real estate investment markets in the U.S., combining affordability, economic stability, and lifestyle appeal. The city’s median home price of $485,000 (up 2.3% year-over-year), paired with 4.51 months of housing supply, signals a balanced market with opportunities for both buyers and sellers. Demand remains resilient thanks to 58,000+ military personnel stationed across multiple bases and a tourism sector that attracts 25.5 million annual visitors and fuels more than $3.1 billion in spending.
In this guide, we’ll explore the top neighborhoods for real estate investment in Colorado Springs, breaking down what makes each area stand out in terms of pricing, rental potential, cap rates, and growth outlook. Whether your strategy focuses on steady cash flow, long-term appreciation, or short-term rental income, these areas represent the best opportunities for investors in 2025.
Downtown Colorado Springs has undergone a remarkable transformation in recent years, shifting from a quieter core into a vibrant hub for business, culture, and urban living. For investors, the area stands out as one of the city’s most dynamic real estate markets, blending steady rental demand with opportunities for appreciation fueled by ongoing redevelopment projects.
The median home price in Downtown sits at $485,000, reflecting a modest 2.3% year-over-year increase. Homes spend an average of 42 days on the market, which is in line with the citywide trend of a gradually balancing market. Inventory levels are more competitive here compared to suburban neighborhoods, and investors will find a mix of property types—historic homes, modern condos, and small multifamily properties—that cater to different tenant profiles.
From a livability perspective, Downtown is one of the most accessible parts of Colorado Springs. It boasts a Walk Score of 89, placing it in the “Very Walkable” category, with residents enjoying proximity to restaurants, bars, cultural attractions, and employment hubs. This high walkability directly supports both rental demand and property values, especially among young professionals, students, and retirees who prioritize convenience and urban amenities.
The rental market reflects this demand. Three-bedroom homes command an average of $2,035 per month, while one-bedroom condos average $1,316 per month. For investors considering short-term rentals, Downtown remains an attractive option under the city’s regulatory framework, particularly for owner-occupied units. Short-term rentals here average an ADR of $216 with 60% occupancy rates, translating to a healthy RevPAR of ~$129.60. With 34% of listings citywide being one-bedroom units, Downtown’s smaller housing stock aligns well with the strongest-performing STR segment.
However, investors should weigh the risks carefully. Downtown’s crime rate stands at 44 incidents per 1,000 residents, meaning there is roughly a 1 in 23 chance of victimization—higher than in suburban submarkets like Briargate or Powers Corridor. This factor can affect tenant preferences and STR reviews if not managed properly. Despite this, consistent demand from young renters and visitors ensures that well-located properties remain resilient in terms of occupancy and yield.
For investors, Downtown Colorado Springs offers a balanced mix of steady long-term rental demand and short-term rental upside, with the added advantage of strong walkability and cultural appeal. While risks around crime and tenant turnover should be accounted for, the neighborhood’s central role in the city’s economic and social fabric makes it a cornerstone market for real estate investment in 2025.
Old Colorado City, once the capital of the Colorado Territory, has evolved into one of the most distinctive and historically rich neighborhoods in Colorado Springs. Today, it blends 19th-century architecture with a vibrant arts, dining, and retail scene, making it a magnet for both residents and tourists. Its combination of cultural significance and prime location—adjacent to Garden of the Gods and within easy reach of downtown—positions it as a strong investment area, particularly for those interested in short-term rentals and unique residential properties.
The average home price in Old Colorado City is $761,000, reflecting its premium character compared to the citywide median of $485,000. Price per square foot often ranges from $250 to over $300, a testament to the value buyers place on the neighborhood’s walkability, heritage homes, and proximity to major attractions. Inventory remains tight, and properties here often appreciate faster than suburban comparables due to their historic charm and central location.
Rental performance underscores its appeal to investors. Long-term rentals, particularly three-bedroom homes, typically command $2,200–$2,800 per month, providing stable cash flow. Yet the real strength of Old Colorado City lies in its short-term rental (STR) market. With average daily rates (ADR) ranging from $230–$280 and RevPAR between $126 and $182, investors can achieve yields higher than the citywide average, especially for well-renovated historic properties. The neighborhood’s walkability score of 75–85 (“Very Walkable”) enhances its attractiveness for tourists seeking accommodations within strolling distance of shops, art galleries, and local restaurants.
Old Colorado City’s tourism-driven economy makes it particularly resilient for STR investors. Visitors drawn to Pikes Peak, Garden of the Gods, and the historic district itself sustain steady occupancy throughout the year, with peaks during summer and fall. Historic homes offer additional investment angles: investors can pursue value-add renovations that not only preserve character but also command premium nightly rates from travelers seeking an authentic Colorado Springs experience.
Investors must also navigate practical considerations. STR licensing in the area remains attainable, though regulations require compliance with spacing and zoning rules. Renovating historic homes often involves higher upfront costs due to preservation requirements, but these can translate into stronger long-term value and rental performance.
For investors seeking to leverage Colorado Springs’ booming tourism sector, Old Colorado City is one of the strongest candidates. Its blend of historic charm, tourism-driven rental demand, and high STR performance makes it particularly well-suited for those aiming to maximize cash flow through vacation rentals or reposition historic properties for modern tenants. While acquisition costs are higher, the neighborhood’s proven resilience and enduring appeal make it one of the most strategic areas for investment in 2025.
Briargate is one of the most sought-after residential neighborhoods in Colorado Springs, especially for families who prioritize strong schools, safe streets, and community amenities. Located in the northern part of the city, Briargate combines suburban convenience with long-term investment stability, making it one of the most reliable markets for buy-and-hold investors.
The median home price in Briargate is around $528,000, with homes typically spending just 27–33 days on the market. This relatively fast turnover underscores consistent demand, even as the broader Colorado Springs market shifts toward more balanced conditions. Inventory is tight, and properties often attract multiple offers, driven by families seeking access to top-performing schools and newer housing stock.
One of Briargate’s strongest investment drivers is its inclusion in Academy School District 20, one of the highest-rated districts in Colorado. For families relocating to the area—whether military families stationed at nearby bases or professionals drawn to Colorado Springs’ expanding job market—school quality is a top priority, and District 20 adds a premium to both property values and rental rates.
Rental performance in Briargate reflects this demand. Three-bedroom homes regularly lease for $2,400–$2,800 per month, with some larger or updated homes achieving even higher rents. This translates to cap rates in the 4–6% range, a solid return for a suburban neighborhood with lower risk profiles. Vacancy rates are low, and tenants tend to stay longer, reducing turnover costs and ensuring stable cash flow for landlords.
In addition to rental performance, Briargate offers strong prospects for long-term appreciation. The neighborhood benefits from steady population growth, its proximity to retail hubs such as The Promenade Shops at Briargate, and access to major commuter routes. Over the past decade, home values in this area have consistently trended upward, supported by limited land availability and ongoing demand from both owner-occupants and investors.
For investors, Briargate is best suited for family-focused rental strategies and those seeking appreciation alongside reliable income. While cap rates may be lower than in value-oriented areas like Cimarron Hills, the stability of tenant demand, high-quality schools, and proven appreciation trajectory make Briargate a cornerstone neighborhood for long-term, risk-averse real estate investment in Colorado Springs.
Northgate has quickly become one of the premier growth corridors in Colorado Springs, attracting both residents and investors with its proximity to the U.S. Air Force Academy, new commercial developments, and high-quality housing. Located at the city’s northern edge along the I-25 corridor, the neighborhood combines suburban comfort with direct commuter access to both Downtown Colorado Springs and Denver, making it highly desirable for professionals and military families alike.
The median home price in Northgate ranges between $555,000 and $660,000, reflecting its upscale housing stock and strong demand. Properties here move quickly, with homes averaging just 19 days on the market, significantly faster than the citywide average of 42 days. This rapid turnover underscores the area’s ongoing competitiveness, even as the broader market shifts toward balance.
Northgate attracts a unique tenant base compared to other parts of Colorado Springs. Its population skews higher-income, with household incomes nearly 93% above the national average and a large proportion of residents employed in executive and professional roles. Combined with demand from military families stationed at the nearby academy, this ensures steady absorption of both for-sale and rental inventory.
Rental performance in Northgate is especially strong in the higher-end segment. Three-bedroom homes typically lease for $2,800–$3,200 per month, putting the neighborhood among the top-performing suburban markets for rental rates. Cap rates generally fall in the 4–5% range, which may be lower than in entry-level areas like Cimarron Hills but align with Northgate’s profile as a stable, appreciation-driven market. Investors benefit from tenants who are typically longer-term, financially secure, and motivated by access to top schools and new amenities.
The area continues to evolve with ongoing development of residential subdivisions, retail centers, and lifestyle venues, further reinforcing its long-term growth trajectory. Its position along I-25 also makes it an attractive choice for hybrid commuters who split time between Colorado Springs and the Denver Tech Center.
For investors, Northgate represents an opportunity to capture long-term value growth with reduced risk. While acquisition costs are higher and yields more modest than in entry-level markets, the combination of rapid turnover, strong demand for luxury rentals, and a high-income tenant base makes Northgate one of the most reliable neighborhoods for stability and appreciation-focused investment strategies in 2025.
The Broadmoor stands out as one of the most prestigious and exclusive neighborhoods in Colorado Springs, synonymous with luxury living and long-term value preservation. Anchored by the world-renowned Broadmoor Hotel and Resort, the area is surrounded by golf courses, high-end dining, and access to some of the city’s most scenic hiking and outdoor spaces. For investors, The Broadmoor represents a high-barrier, high-reward market best suited for those focused on equity growth and stability rather than immediate cash flow.
The neighborhood’s median home price is $528,000, reflecting a notable 20% year-over-year increase. While this figure is close to the citywide average, The Broadmoor’s market includes many luxury properties that command much higher prices depending on location, size, and amenities. Properties here typically spend 54–55 days on the market, slightly longer than in faster-moving suburban areas, but buyers are willing to pay a premium for the neighborhood’s exclusivity and reputation.
Rental demand exists but is more niche compared to family-driven or military-heavy submarkets. Three-bedroom homes in The Broadmoor typically rent for $2,500–$3,000 per month, and two-bedroom condos for $1,800–$2,200. While these rents are strong in absolute terms, the high acquisition costs mean that cap rates generally fall in the 3.5–4.5% range, lower than what investors might achieve in more moderately priced areas such as Powers Corridor or Cimarron Hills.
Despite modest yields, the strength of The Broadmoor lies in its appreciation potential and long-term value retention. The neighborhood is served by Cheyenne Mountain School District 12, one of the most respected school districts in the region, which further bolsters home values. Crime rates are lower than the city average, and many communities feature luxury amenities and HOA services that appeal to high-net-worth residents.
For investors, The Broadmoor is best suited for high-net-worth buyers seeking to diversify into luxury real estate or hold assets with strong long-term appreciation potential. This market rewards those who can weather lower cash flow in exchange for equity growth, stable demand, and the prestige that comes with owning in one of Colorado Springs’ most exclusive enclaves. For 2025, The Broadmoor remains an elite choice—less about immediate returns, and more about positioning for long-term gains in a resilient luxury market.
The Powers Corridor has rapidly grown into one of the most active and in-demand submarkets in Colorado Springs, thanks to its mix of affordability, convenience, and ongoing development. Stretching along the Powers Boulevard arterial, this area offers easy access to shopping centers, dining, and major employers, making it highly attractive to young professionals and growing families. For investors, it presents a balanced combination of affordable acquisition costs and steady rental demand, positioning it as one of the city’s most reliable cash-flow markets.
Home prices in the Powers Corridor remain competitive compared to premium neighborhoods, with a median range of $439,900–$457,000. Price per square foot averages around $207, which represents a slight 3.3% decline year-over-year, signaling some short-term entry opportunities for investors. Homes typically spend 37–62 days on the market, reflecting a moderately active pace that aligns with balanced market conditions.
Rental demand in the Powers Corridor is consistently strong. Three-bedroom homes typically lease for $2,200–$2,600 per month, supported by the area’s popularity with military families due to its proximity to Peterson Space Force Base and its appeal to families seeking suburban convenience without Broadmoor or Briargate price tags. This dynamic translates into estimated cap rates of 5–7%, higher than those in more expensive markets like Northgate or The Broadmoor, making the corridor especially appealing to investors focused on cash flow.
Another advantage for investors is the area’s diverse housing stock. The Powers Corridor includes everything from starter homes to newer subdivisions, with many properties in managed communities that provide amenities while keeping HOA fees relatively manageable. School zoning is split between District 11 and Falcon District 49, giving tenants access to multiple education options.
Ongoing infrastructure improvements and commercial growth continue to bolster long-term appreciation prospects in this submarket. While the corridor is reaching maturity in some sections, steady demand from both owner-occupants and renters ensures it remains a vital part of the Colorado Springs housing market.
For investors, the Powers Corridor delivers the best of both worlds: affordable entry pricing and solid rental yields. It is especially well-suited for cash-flow-focused investors seeking dependable returns and lower risk of vacancy, with the added benefit of long-term growth potential as the area continues to expand.
Cimarron Hills is one of the most affordable and yield-driven investment markets in Colorado Springs, offering investors a reliable entry point with strong rental performance. Located on the city’s eastern side near Peterson Space Force Base, the neighborhood benefits from a steady tenant base of military families and young professionals who value affordability, proximity to work, and suburban convenience.
The median home price ranges from $333,000 to $385,000, making Cimarron Hills significantly more accessible than areas like Briargate or Northgate. Homes here take longer to sell than in premium submarkets, with an average 77 days on market, but this slower turnover provides opportunities for investors to negotiate favorable terms. Despite its lower pricing, Cimarron Hills consistently produces the highest cap rates in the city—typically 6–8%, making it particularly appealing for cash-flow-focused investors.
Rental demand in the neighborhood is strong, fueled by continuous relocation cycles from military personnel. Three-bedroom homes commonly rent for $1,900–$2,350 per month, while two-bedroom condos average around $1,700. Some data even points to vacancy rates near 0%, reflecting the near-constant demand generated by nearby bases and local employment centers. Tenants in this market are often stable renters, providing landlords with reliable occupancy and predictable income streams.
Another advantage for investors is the relatively low barrier to ownership and minimal HOA requirements across many properties. This reduces operating costs and makes Cimarron Hills attractive for long-term holds without the added expense or restrictions often found in higher-priced areas. Schools are served by Falcon District 49, which carries mixed ratings, but rental demand has proven resilient despite this factor due to the neighborhood’s affordability.
While Cimarron Hills does not offer the luxury appeal or rapid appreciation potential of upscale markets, its combination of low entry costs, military-driven rental demand, and superior cash-flow potential makes it one of the most practical investment areas in Colorado Springs. For investors seeking steady returns with reduced exposure to market volatility, Cimarron Hills remains a cornerstone of value-oriented investing in 2025.
Falcon, located just east of Colorado Springs, has rapidly grown from a rural outpost into a thriving suburban community. Its appeal lies in the combination of affordability, newer subdivisions, and spacious lots, making it particularly attractive to families and remote workers seeking more room without sacrificing access to city amenities. As Colorado Springs continues to expand eastward, Falcon is emerging as one of the strongest long-term appreciation plays in the region.
Home prices in Falcon remain competitive compared to many in-city neighborhoods, with most single-family properties trading around the low $400,000s depending on size and amenities. Buyers can often find newer builds or move-in-ready homes at price points that are increasingly rare in Colorado Springs proper. The relative affordability, combined with modern construction, appeals to renters and buyers alike.
Rental demand in Falcon is steadily increasing, fueled by two key trends: the migration of families looking for affordable alternatives to Briargate or Northgate, and the rise of remote work. Tenants in this market value the ability to lease larger homes with more yard space, often at prices similar to smaller in-town rentals. Three-bedroom homes typically lease in the $2,100–$2,400 range, with vacancy rates kept low by consistent population inflows and school enrollment growth.
From an investment perspective, Falcon’s greatest strength lies in its long-term appreciation potential. The area continues to benefit from new infrastructure projects, including road expansions and utility upgrades, that support ongoing residential development. With ample land still available for growth, Falcon is positioned to absorb much of Colorado Springs’ future housing demand, particularly as affordability pressures push residents outward from the city core.
Falcon is not without trade-offs. Some areas rely on septic and well systems rather than city utilities, which may add to maintenance considerations for both owners and tenants. Commute times into central Colorado Springs are longer compared to in-town neighborhoods, which can limit appeal for some renters. Still, for households prioritizing space and value, these trade-offs are often acceptable.
For investors, Falcon offers a compelling blend of affordable acquisition prices, stable rental demand, and strong appreciation runway. While cash flow may not be as high as in Cimarron Hills, the long-term growth trajectory and family-oriented tenant base make Falcon a promising choice for those seeking both steady income and capital gains as Colorado Springs’ expansion continues eastward.
Manitou Springs is one of the most distinctive and picturesque markets in the Colorado Springs area, blending historic character, mountain scenery, and a thriving tourism economy. Nestled at the base of Pikes Peak and renowned for its natural mineral springs and vibrant downtown, the community offers investors a unique opportunity to capture both residential and tourism-driven demand. Its combination of limited housing supply, strong vacation rental performance, and steady visitor flow makes Manitou Springs a top choice for investors targeting short-term rental strategies.
The market here commands premium pricing. The median home price is $736,000, reflecting a notable 12.3% year-over-year increase. Inventory is extremely tight, with as few as 15 homes available at times and properties spending just 26–39 days on market. This scarcity drives competition and supports long-term appreciation, especially for homes with historic charm or mountain views.
Tourism is the neighborhood’s key economic engine, directly fueling rental demand. Short-term rentals in Manitou Springs achieve average daily rates (ADR) of $172–219 and maintain occupancy rates between 56–61%, resulting in RevPAR around $105. These figures are supported by the town’s year-round tourist base, with peaks during summer and fall when visitors flock to Pikes Peak, Garden of the Gods, and local festivals. Unlike other neighborhoods where STRs are supplemental, in Manitou Springs they represent one of the primary investment opportunities.
Long-term rentals exist but yield more modest results compared to purchase prices. For example, three-bedroom homes often rent for around $1,800 per month, a figure that underscores why short-term rentals are more profitable in this market. The challenge for investors is navigating regulations: strict STR rules apply, including owner-occupancy requirements and 500-foot spacing buffers between rental properties. Compliance is essential, and investors must factor in permitting, insurance, and higher management fees (often 18–30% of revenue) into their financial models.
Despite regulatory hurdles, the upside for well-located and properly managed STRs remains strong. Demand is bolstered by Manitou Springs’ reputation as a cultural and artistic hub, home to galleries, events, and a laid-back mountain lifestyle that appeals to both visitors and permanent residents.
For investors, Manitou Springs is best suited for vacation rental strategies targeting the tourism economy. While high acquisition costs and regulatory constraints narrow the pool of feasible projects, the combination of limited housing supply, strong visitor demand, and premium nightly rates ensures that compliant properties in this market can deliver strong returns and long-term value appreciation.
Colorado Springs offers a diverse set of submarkets, each catering to different investment strategies and risk profiles. By aligning your goals with the right neighborhood, you can maximize returns while managing risk effectively.
By mapping your strategy to the right neighborhood, you can take advantage of Colorado Springs’ unique mix of affordability, stability, and growth, ensuring that your investment aligns with both your financial goals and risk tolerance.
Ready to find your investment property in Colorado Springs?
The current market transition from seller's to balanced conditions creates exceptional opportunities for prepared investors who understand neighborhood dynamics and investment strategies. Whether you're seeking immediate cash flow, long-term appreciation, or short-term rental income, Colorado Springs offers compelling options across all investment profiles.
Contact John Chudzinski for local expertise, detailed comparative market analyses, and access to off-market opportunities. With deep knowledge of military relocation patterns, school district boundaries, and neighborhood development trends, John helps investors identify properties that align with their financial goals while navigating Colorado Springs' unique market dynamics. Don't let this balanced market window close without securing your position in one of America's most promising real estate markets.
Stay up to date on the latest real estate trends.
March 22, 2025
Ensuring a Sound Investment in Your Future Home.
March 22, 2025
Key Steps to Securing Your Dream Luxury Property.
March 22, 2025
Enhancing Style, Comfort, and Functionality.
March 22, 2025
Keep Your Home in Top Condition Year-Round.
February 14, 2025
Discover Where Local Flavors and Stunning Landscapes Come Together.
February 7, 2025
Discover the Best Neighborhoods in Colorado Springs for Strong Returns on Real Estate Investments.
February 7, 2025
Explore Fascinating Facts and Hidden Gems that Make Colorado Springs a Truly Unique Place.
February 7, 2025
Discover the Best Destinations for a Quick Getaway Just a Short Drive from Monument.
January 24, 2025
Discover Top Neighborhoods in Colorado Springs, CO Real Estate Market.
Whether you’re looking to sell your home or invest in a property, Strategic Property Advisors’ has you covered. At Strategic Property Advisor we always bring forward the best resources available to ensure every transaction is as smooth as possible. Every move during the process is done to your advantage and completely surrounds your personal real estate goals.
