Here is why property prices are going to climb in 2025 in Colorado Springs

Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Colorado Springs real estate spreadsheet template.

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Expecting a decrease in Colorado Springs prices in 2025? Think again.

Even with changing dynamics, the local market is strong, with high demand and not enough supply pushing prices up.

Let's explore why costs in this city are set to rise in 2025.

This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.

1) In Colorado Springs, there are only about 0.42 homes for each person, which is quite limited

Signal strength: strong

The fact that there is around 0.42 home per inhabitant in Colorado Springs indicates a relatively tight housing market.

When the number of homes per person is low, it suggests that housing supply is limited compared to demand. This limited supply can lead to increased competition among buyers, which often results in rising housing prices.

In Colorado Springs, a unique factor is the presence of military installations like Fort Carson, which brings a steady influx of military personnel and their families. This consistent demand for housing, combined with the limited supply, further supports the assumption that housing prices are likely to increase in the coming years.

If the number of homes per inhabitant were to increase significantly, say to 0.6 home per inhabitant, it might indicate a more balanced market, potentially stabilizing prices.

Source: USCensus

2) Home values in Colorado Springs have risen by 2.5% since last year, and this trend may persist

Signal strength: strong

The fact that home values in Colorado Springs have already changed by 2.5% since last year is a strong indicator that the housing market is on an upward trend. This increase suggests that demand is likely outpacing supply, which often leads to rising prices.

Currently, the median home price in Colorado Springs is around $448,091, which is a substantial figure that reflects the area's growing appeal. Additionally, the median sales price per square foot is approximately $218, further supporting the notion that property values are appreciating.

These statistics are crucial for potential investors, as they highlight a market that is gaining momentum and could offer profitable returns. If these trends continue, it is reasonable to expect that housing prices will keep climbing into 2025, making it a potentially lucrative investment.

However, if the market were to experience a significant increase in housing supply or a decrease in demand, this 2.5% change in home values might not be enough to sustain the upward trend.

Source: Redfin

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3) Three major websites confidently predict that home prices in Colorado Springs will rise in 2025

Signal strength: strong

There are currently three major websites forecasting a positive growth for home prices in Colorado Springs in 2025, which is a promising signal for potential investors.

Among these forecasts, Realtor is the most optimistic with a projected increase of 12.70% in home prices, followed by Redfin at 4%, and Zillow at 2.60%. The significant gap between Realtor's and Zillow's forecasts suggests varying levels of confidence in the market's growth potential.

While these predictions are encouraging, it's important to remember that forecasts should be taken with caution as they are based on assumptions and models that may not fully capture future market dynamics. Therefore, we should also rely on strong, reliable, and current data to make a well-informed investment decision.

If these forecasts were to predict a negative growth or a decline in home prices, it would signal a potential downturn in the market.

Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts

4) With a of just 4.5%, Colorado Springs has a bustling and competitive market

Signal strength: moderate

The vacancy rate in Colorado Springs is 4.5%, which is considered very low. This low vacancy rate indicates that the housing market is highly occupied and competitive, meaning there is strong demand for housing in the area.

When demand is high and supply is limited, it often leads to increased housing prices as more people compete for fewer available homes. In such a market, properties that are easily rented are typically well-maintained and located in desirable areas, such as downtown Colorado Springs.

Investors might find opportunities in these areas, as the rental demand remains strong and can provide a steady income stream. However, if the vacancy rate were to rise significantly, say to above 7%, it could indicate a shift towards a less competitive market.

Sources: NeighborhoodScout, DataUSA, USCensus

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5) Colorado Springs boasts a strong livability score of 79, indicating it's a great place to live

Signal strength: moderate

The livability score of 79 in Colorado Springs is considered good because it reflects a high quality of life, which is attractive to potential residents.

One reason for this score is the proximity to the stunning Rocky Mountains, offering residents easy access to outdoor activities like hiking and skiing. Additionally, the city boasts a strong job market with opportunities in sectors like defense, technology, and healthcare, which draws professionals seeking employment. These factors contribute to a desirable living environment, making it likely that housing demand will increase as more people move to the area.

Another aspect contributing to the livability score is the excellent educational institutions, including reputable schools and universities, which attract families and students. As more people seek to live in areas with good education and job prospects, the demand for housing typically rises, leading to potential increases in housing prices.

However, if the livability score were to drop below 70, it might indicate declining conditions, which could deter new residents and potentially stabilize or decrease housing prices.

Source: AreaVibes

6) In the past decade, home prices in Colorado Springs have consistently risen by an average of 8.4% each year

Signal strength: moderate

The fact that home prices in Colorado Springs have appreciated at an average rate of 8.4% over the last decade is noteworthy.

This consistent growth in home values suggests a strong history of demand and price increases, which can indicate favorable conditions for future appreciation. While past performance is not a guarantee of future results, it often provides a useful context for potential trends.

Investors might find this historical data encouraging, as it reflects a pattern of rising home values that could continue. However, it's crucial to remember that market conditions can change due to various factors, such as economic shifts or policy changes.

If the average appreciation rate were to drop significantly, say below 3% over a similar period, it might suggest a different trend.

Source: NeighborhoodScout

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7) In Colorado Springs, about 26% of homes sell for more than their listing price

Signal strength: minimal

In Colorado Springs, around 26% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it often means that competition among buyers is intense and they are eager to secure a property.

This kind of market behavior suggests that housing demand is outpacing supply, which typically leads to an increase in prices. As more buyers compete for fewer homes, sellers can command higher prices, driving the market upward.

For someone considering investing in real estate, this trend is a positive sign that property values are likely to appreciate in the near future. However, if the percentage of sales closing above the listing price were to drop significantly, say below 10%, it might indicate a cooling market.

Source: Zillow

So, are prices going to climb in Colorado Springs in 2025? Absolutely