Colorado Springs Housing Market: Trends and Forecast 2025-2026

Thinking about buying or selling a home in Colorado Springs? The Colorado Springs housing market has been a hot topic, and right now, it's showing a mixed bag of signals, with some moderating trends but still holding steady overall, especially as we look towards the end of 2025. It's not a simple boom or bust, but more of a gentle recalibration.

Let's dive into what the numbers are telling us and what experts are predicting for the near future. Understanding these trends can make a huge difference in your real estate decisions.

Colorado Springs Housing Market: What's Happening Now in 2025?

Home Prices: A Slight Cool Down?

In September, we saw a bit of a pause in the rapid home price increases that many have grown accustomed to. According to Realtor.com, the median listing price in Colorado Springs was around $469,675. This was a slight dip from the month before.

What's interesting is that typically, September sees home prices per square foot in Colorado Springs tick up. This year, however, that price per square foot actually decreased by 0.6% compared to August. Now, before you panic, it's important to see how this stacks up nationally. Across the entire U.S., the price per square foot saw a larger drop of 0.8%. So, while Colorado Springs did see a slight dip, it was actually less pronounced than the national trend. This suggests that while things might not be skyrocketing, they aren't falling off a cliff either.

Colorado Springs Inventory: More Homes Available, But Selling Slower

One of the biggest factors influencing any housing market is housing inventory, or the number of homes for sale. In September, Colorado Springs had 2,719 homes on the market. This number was actually a tiny bit lower than the month before (0.5% less), but here's the important part: it was a significant 23.5% increase compared to the same time last year.

This jump in available homes is a good sign for buyers, as it means more options. However, it's also contributing to homes taking longer to sell. Nationally, the active inventory also saw a slight increase of 0.2% from the previous month, reaching over 1.1 million homes. So, while inventory is up in Colorado Springs, it's in line with a broader national trend of more homes becoming available.

Time on Market: Buyers Have More Time to Decide

This leads us to how long homes are actually sitting on the market. In September, homes in Colorado Springs were taking an average of 60 days to sell. This is seven days longer than the previous month and a full 10 days longer than in September of last year.

When we compare this to the national average, which was 62 days on the market in September, we see that homes in Colorado Springs are actually selling slightly faster than the national average. However, the increase in days on market, both month-over-month and year-over-year, signals a shift. Buyers are generally not in as much of a rush as they might have been in the past. This gives them more breathing room to make informed decisions and negotiate.

Buyer's or Seller's Housing Market? A Shift Towards Balance

Based on these trends, it feels like the Colorado Springs housing market is moving from a strong seller's market towards a more balanced market. While sellers still have advantages, especially with homes in good condition and priced well, buyers have more leverage than they did a year or two ago. The increased housing inventory and longer time on market are key indicators of this shift. It’s not a dramatic swing, but a noticeable one that buyers should pay attention to.

Colorado Springs Housing Market Forecast 2025 and 2026

Now, let's look ahead. Predicting the future of any market is tricky, but by looking at expert analysis and economic indicators, we can get a good sense of what to expect in the Colorado Springs housing market in the coming months and into 2026.

What Experts Are Saying

According to Zillow's data, the average Colorado Springs home value is currently around $454,872. This represents a 2.4% decrease over the past year. Homes are going under contract (pending) in about 37 days.

Here’s a look at Zillow's month-over-month forecast for home price changes in the Colorado Springs metropolitan statistical area (MSA):

Timeframe	Colorado Springs, CO
October 2025	+0.1%
December 2025	-0.2%
September 2026	-0.5%

This forecast suggests a very modest uptick at the very end of 2025, followed by a slight decrease towards the latter half of 2026. It indicates a period of stability with minor fluctuations, rather than significant price drops or surges in the immediate future.

Colorado Springs vs. Other Colorado Cities

When we compare Colorado Springs to other areas in Colorado, we see some interesting patterns:

Region	Oct 2025	Dec 2025	Sep 2026
Colorado Springs, CO	0.1%	-0.2%	-0.5%
Denver, CO	0.0%	-0.3%	-0.6%
Fort Collins, CO	0.1%	0.2%	0.2%
Boulder, CO	0.0%	-0.4%	-0.7%
Greeley, CO	0.0%	-0.1%	-0.4%
Pueblo, CO	-0.1%	-0.3%	-0.2%
Grand Junction, CO	0.3%	0.9%	2.8%
Glenwood Springs, CO	0.7%	1.5%	5.7%

As you can see, Colorado Springs is predicted to have a relatively flat to slightly decreasing trend in home prices through September 2026. Cities like Denver, Boulder, and Greeley show similar or slightly more pronounced negative trends. On the other hand, mountain towns like Grand Junction and Glenwood Springs are showing much stronger positive growth.

National Housing Market Outlook

The national picture, according to Zillow and NAR, offers a more optimistic tone for the broader U.S. housing market.

Zillow's Key Predictions:

• Home value growth: After a flat 2025, Zillow expects home value growth to recover in 2026, potentially reaching nearly 1.9% by August 2026.
• Home sales: The number of homes sold is projected to end 2025 slightly above 2024 levels.
• Rents: Rents are expected to continue cooling, with slower growth than in recent years.

NAR Chief Economist Lawrence Yun's Optimistic Outlook:

Lawrence Yun from NAR paints a bright picture:

• Existing Home Sales: Expected to rise 6% in 2025 and accelerate by 11% in 2026. This means more transactions are likely to happen.
• New Home Sales: Projected to climb by 10% in 2025 and another 5% in 2026. This is great news for addressing the shortage of homes.
• Median Home Prices: Forecasted to increase modestly, with a projected rise of 3% in 2025 and 4% in 2026. This suggests a return to sustainable appreciation.
• Mortgage Rates: Anticipated to average 6.4% in the second half of 2025 and potentially dip to 6.1% in 2026. Yun calls these lower rates a “magic bullet” for the market, making homes more affordable.

So, Will Home Prices Drop in Colorado Springs? Can It Crash?

Based on the data and forecasts, it's highly unlikely that home prices in Colorado Springs will crash. The forecasts from Zillow suggest modest declines or stabilization in the short term for Colorado Springs, rather than a dramatic fall. This is supported by the overall national trend pointing towards modest price increases in the coming years, driven by factors like easing mortgage rates and increased sales volume.

While a crash is improbable, prices are not expected to surge wildly either. The market seems to be settling into a more sustainable pace. The days of rapid, double-digit appreciation might be behind us for now, replaced by more gradual growth.

A Look Further Ahead: 2026 End and Early 2027

Looking out to the end of 2026 and into early 2027, the trends suggest a continued strengthening of the U.S. housing market, and Colorado Springs should benefit from this, albeit perhaps at a more measured pace than some other areas.

• Stabilizing or Slightly Appreciating Prices: With mortgage rates predicted to be more favorable and overall economic conditions likely improving, we could see the slight downward trend in Colorado Springs begin to reverse. Expect prices to either stabilize or see modest, sustainable appreciation towards the end of 2026.
• Increased Sales Activity: As affordability improves with potentially lower mortgage rates and steady job growth in Colorado Springs, we should see an increase in both buyers and sellers entering the market. This would lead to a more active market with potentially less time on market for well-priced homes.
• Inventory Management: While inventory has increased, a healthy market sees a balance between supply and demand. If demand picks up significantly, we might see inventory levels moderate again, especially for desirable properties.

In my experience, when mortgage rates start to ease and buyer confidence returns, the market tends to rebound. Colorado Springs has a strong underlying appeal – its natural beauty, growing economy, and quality of life. These factors provide a solid foundation, preventing a significant downturn. The current trends suggest a market that is finding its equilibrium after a period of rapid change.

In conclusion, the Colorado Springs housing market is in a phase of adjustment, with moderating price growth and increased inventory. While a crash is not on the horizon, expect a more balanced market with opportunities for both buyers and sellers as we move into 2025 and beyond.

Should You Invest in the Colorado Springs Real Estate Market?

Colorado Springs has emerged as a compelling market for real estate investors. With a blend of steady growth, a robust job market, and a thriving rental scene, the city offers attractive opportunities for building wealth. Let's delve into the key factors that make Colorado Springs a strong contender for your investment portfolio.

Thriving Population and Upward Trends

• Population Boom: Colorado Springs boasts a vibrant and growing population. The city has witnessed impressive growth over the past 50 years, and its growth rate has consistently been higher than most other cities in the state. From 1992 to 2022, the city's population increased by 69%, and in 2024, it's estimated to be 502,306. The Colorado Springs metro area is also expected to continue growing, reaching 701,000 in 2024, and 1,003,957 by 2045. This influx translates to a sustained demand for housing, a crucial factor for any real estate investor.
• In-Migration Trends: The city continues to attract residents seeking a high quality of life. This in-migration fuels the housing market, creating a positive environment for investors. Young professionals, retirees, and military families are all drawn to the city's affordability, job opportunities, and outdoor recreation options. This diverse demographic ensures a steady demand for a variety of housing types, from starter homes and family residences to upscale condos and vacation rentals.

A Strong and Diversified Economy

• Job Market Powerhouse: Colorado Springs boasts a robust economy anchored by diverse industries. As of May 2024, Colorado Springs' unemployment rate was 3.90%, which is lower than the long-term average of 5.35%. In 2023, the government sector added the most jobs, with 24,400 new positions, followed by healthcare (11,600) and professional and technical services (10,300). Defense contractors and the semiconductor industry also contributed to job growth, with 10 companies announcing expansion plans that could create more than 3,000 jobs over the next few years. These jobs pay higher than the area's average wage, which could lead to additional job growth as new hires spend money at local businesses. 
• The presence of the military, particularly Fort Carson, injects billions of dollars into the local economy and creates a stable source of employment. A thriving healthcare sector, fueled by world-class medical institutions, and a growing tech industry further solidify the city's economic foundation. This diversification mitigates the risk of a downturn in any single industry, a valuable asset for investors seeking long-term security in their holdings.

Livability and More: A City with Allure

• Outdoor Enthusiast's Paradise: Nestled amidst breathtaking natural beauty, Colorado Springs offers a plethora of outdoor activities. From world-class hiking and biking trails to renowned rock climbing destinations and pristine ski slopes, the city caters to an active lifestyle. This strong outdoor recreation scene not only attracts residents but also fuels tourism, creating a secondary source of demand for rental properties.
• Cultural Hub: The city boasts a vibrant arts and culture scene, with museums, theaters, and a growing culinary scene. The historic Old Colorado City district offers a unique blend of shops, restaurants, and art galleries, while the Broadmoor Hotel provides a touch of luxury. This cultural richness adds to the overall appeal of Colorado Springs, making it a desirable place to live, invest, and raise a family.

Thriving Rental Property Market: A Goldmine for Investors

• High Occupancy Rates: Colorado Springs boasts a healthy rental market with consistently high occupancy rates. This translates to reliable rental income for investors, a crucial factor for building wealth and cash flow. Low vacancy periods minimize the risk of lost income and allow investors to focus on long-term property appreciation.
• Rental Market Growth: The rental market shows promising growth, mirroring the city's population trends. The increasing demand for housing, coupled with a limited inventory of single-family homes available for purchase, is pushing more residents towards the rental market. This trend ensures a sustained demand for rental properties, making it a lucrative market for investors looking to capitalize on a growing income stream.

Other Factors to Consider Before Investing

• Real Estate Market Trends: While the forecast suggests a moderation in price growth, the overall trend suggests a stable market with long-term potential. Investors seeking quick flips might need to adjust their strategies, but those looking for a buy-and-hold approach will find Colorado Springs to be a market with consistent appreciation and strong rental income opportunities.
• Inventory Levels: Inventory levels are gradually increasing, potentially leading to a more balanced market. This might influence negotiation power and impact short-term investment strategies. Consulting a local real estate professional is crucial for navigating the current market dynamics and identifying pockets of opportunity within the city. Investors should consider factors like property type, location, and potential rental income when making investment decisions.

Conclusion: Weighing the Options

Colorado Springs presents a compelling case for real estate investors. The city's strong fundamentals, coupled with a dynamic and growing population, fuel demand for housing and rentals. While the market might be entering a phase of moderation, the long-term outlook remains positive. Investors seeking a stable market with consistent growth potential, a robust rental market, and a high quality of life should strongly consider Colorado Springs for their investment endeavors.