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Thinking about investing in real estate in Colorado Springs in 2025? You're on the right track.
Despite economic shifts, the Colorado Springs market shows promising growth, with demand and development on the rise.
In this blog post, we will explore why investing here is a smart move.
We rely on solid, up-to-date data and statistics from trusted sources to guide our analysis.
By the end, we will share our own conclusions based on this comprehensive review. Enjoy the read!
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.
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- Here is why prices are going to climb in 2025 in Colorado Springs
1) With a "vacancy rate" of just 4.5%, Colorado Springs has a bustling and competitive market
Signal strength: strong
The vacancy rate in Colorado Springs is 4.5%, which is considered very low. This low vacancy rate indicates that the rental market is highly occupied and competitive, meaning there is strong demand for rental properties.
When demand is high, it often leads to increased rental prices, which can provide a good return on investment for property owners. In Colorado Springs, well-maintained single-family homes in areas like Briargate are particularly sought after and easily rented.
Investing in such properties can be a smart move because they tend to attract long-term tenants who are willing to pay a premium for quality and location. This makes the investment more stable and potentially more profitable over time.
If the vacancy rate were to rise to above 7%, it might indicate a less competitive market, suggesting that buying property might not be as advantageous.
Sources: NeighborhoodScout, DataUSA, USCensus
2) 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 combination of factors that make the area attractive for residents. This score indicates that the city offers a high quality of life, which is a crucial factor for potential property buyers.
One specific characteristic contributing to this score is the proximity to natural attractions like the Garden of the Gods and Pikes Peak, which provide recreational opportunities and scenic beauty. Additionally, Colorado Springs has a strong sense of community, with numerous local events and activities that foster a welcoming environment. The city also benefits from a robust job market, particularly in sectors like defense and technology, which attracts a steady influx of professionals.
These factors combined make Colorado Springs a desirable place to live, thereby supporting the assumption that buying property here is a good investment. When people find a place attractive to live, it generally leads to increased demand for housing, which can drive property values up over time.
However, if the livability score were to drop below 70, it might indicate underlying issues that could affect the desirability and investment potential of the area.
Source: AreaVibes
3) The "Colorado Centre Drainage Improvements Project" and "ArtSpace" are crucial projects enhancing Colorado Springs' real estate market by 2025
Signal strength: moderate
The Colorado Centre Drainage Improvements Project and ArtSpace are key developments that could significantly boost Colorado Springs' real estate market by 2025.
The Colorado Centre Drainage Improvements Project, located in El Paso County, aims to enhance infrastructure by addressing drainage and roadway issues. This project, expected to be completed by late 2026, is strategically positioned near the Colorado Springs Airport and downtown, making it a prime location for potential real estate growth. By improving infrastructure, the project could increase the area's appeal, potentially leading to a rise in property values.
ArtSpace, a mixed-use development providing live-work units and artist studios, is set to revitalize the downtown area by 2025. This project is likely to attract more residents and businesses, contributing to the vibrancy and economic growth of Colorado Springs. The presence of such cultural and creative spaces can enhance the city's attractiveness, making it a desirable place to live and invest.
Additionally, the general market trends in Colorado Springs indicate a strong growth trajectory, with a predicted combined sales and price growth of 39.8%. Factors such as a strong military presence, high adoption of government-backed mortgages, and abundant new construction further support the potential for real estate appreciation.
Sources: El Paso County, Springs Magazine, Steadily, Your View Home
4) Colorado Springs is experiencing a population increase
Signal strength: moderate
The population of Colorado Springs has consistently shown growth over the past few years, making it a promising location for property investment. As the population increases, the demand for housing typically rises, which can lead to higher property values over time.
Recent data indicates that the population of Colorado Springs increased from 677,000 in 2021 to 701,000 in 2024, reflecting a steady growth rate. This trend suggests a strong and sustained demand for housing, which is a positive indicator for real estate investors.
Looking ahead, forecasts predict that the Colorado Springs-Pueblo, CO Market will reach a population of 1,609,320 by July 2029, representing a 6.9% increase from the current population. By July 2034, the population is expected to grow by 15%, further supporting the notion that property values may continue to appreciate as demand remains robust.
In the broader context, El Paso County, where Colorado Springs is located, has experienced a 6.5% population surge in the last five years and is projected to surpass Denver in population by 2050. This regional growth trend underscores the potential for long-term property value increases in Colorado Springs.
Sources: HBR Colorado, Synergos Tech, Macrotrends, Axios, Neilsberg
5) Airbnb or "short-term rental" in Colorado Springs offers a fairly appealing profitability rate of 5.0%
Signal strength: moderate
The cash-on-cash return on Airbnb in Colorado Springs is 5.0%, which is considered moderately attractive for investors.
This percentage indicates that the income generated from short-term rentals is relatively healthy compared to the initial cash investment. In Colorado Springs, short-term tenants often include tourists who are drawn to the area's natural beauty and outdoor activities.
These visitors are typically families and adventure enthusiasts looking to explore attractions like Pikes Peak and Garden of the Gods. Additionally, business travelers and military personnel visiting nearby bases also contribute to the demand for short-term rentals.
If the cash-on-cash return were to drop below 3.0%, it might suggest a less favorable investment in this market.
Source: Mashvisor
6) The "cash-on-cash return" of 5.0% for long-term rentals in Colorado Springs is reasonably appealing
Signal strength: moderate
The cash-on-cash return of 5.0% in Colorado Springs indicates that the property is generating a decent return on the cash invested. This percentage is considered moderately attractive because it suggests that the investment is likely to yield a steady income stream.
In Colorado Springs, long-term tenants often include military personnel and their families due to the presence of military bases like Fort Carson. Additionally, the city attracts young professionals and students because of its growing job market and educational institutions.
These tenant demographics contribute to a stable rental demand, which is crucial for maintaining consistent rental income. Therefore, the combination of a moderately attractive cash-on-cash return and a reliable tenant base makes investing in Colorado Springs appealing.
If the cash-on-cash return were to drop below 3.0%, it might indicate that the investment is less favorable and could signal potential investors to reconsider.
Source: Mashvisor
So, is investing in real estate in Colorado Springs a solid option in 2025? Absolutely!
Investing in real estate in Colorado Springs in 2025 is a smart move, and here's why.
First, the city boasts a low vacancy rate of 4.5%, indicating a highly competitive rental market. This means there's a strong demand for rental properties, which often leads to increased rental prices and a good return on investment. Additionally, Colorado Springs has a livability score of 79, reflecting a high quality of life that attracts residents and supports property value growth.
Moreover, key projects like the Colorado Centre Drainage Improvements Project and ArtSpace are set to enhance the city's infrastructure and cultural appeal, further boosting real estate prospects. The city's population is also on the rise, with a projected increase of 6.9% by 2029, ensuring sustained demand for housing. Lastly, a cash-on-cash return of 5.0% for Airbnb properties highlights the potential for steady income from short-term rentals.