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Expecting a dip in Colorado Springs property prices in 2025? Think again.
Despite economic shifts, the housing market in this vibrant city is poised for growth, driven by increasing demand and limited availability.
In this blog post, we will explore the reasons why property prices are set to rise in Colorado Springs.
We rely on solid, up-to-date data and statistics from multiple credible sources, ensuring our analysis is grounded in fact, not speculation.
By the end, we will present our own well-reasoned conclusion based on this comprehensive analysis. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
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
We created this infographic to show how property prices in Colorado Springs compare to other big cities in Colorado. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
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 "vacancy rate" 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
Our team designed this infographic to show how competitive the real estate market in Colorado Springs is vs. other major cities in Colorado. It shows the percentage of sales above the list price, a key indicator of market competition.
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
This infographic we have made will show you how market values have changed during the last decade in Colorado Springs vs other major places in Colorado. Here, the percentage increase or decrease in market value will help you see long-term trends.
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
Colorado Springs is experiencing a perfect storm of factors that are likely to drive housing prices up in 2025.
First, the city has a limited housing supply with only 0.42 homes per person, which creates a competitive market. This scarcity, combined with a steady influx of military personnel due to nearby installations, ensures a constant demand for housing. As a result, prices are expected to rise.
Additionally, home values have already increased by 2.5% since last year, with a current median home price of $448,091. This upward trend is supported by forecasts from major websites, with Realtor predicting a 12.70% increase in home prices by 2025.
The low vacancy rate of 4.5% further indicates a bustling market, while a strong livability score of 79 makes the city attractive to new residents. Historical data shows an average annual appreciation of 8.4% over the past decade, reinforcing the likelihood of continued growth.
Finally, with 26% of homes selling above their listing price, it's clear that demand is outpacing supply. All these factors combined make it highly probable that housing prices in Colorado Springs will climb in 2025.
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