Colorado Springs

COColorado Springs MSA

Real Estate Market Analysis

Q3 2025 Report
$484,906 (June 2025)
Median Home Price
~495,000 (city); ~755,000 (metro area)
Population
$77,000 (metro, 2024 estimate)
Median Income
Above average (District 20, District 11, Cheyenne Mountain D12 highly rated)
School District Rating

Market Overview

Property Values

$484,906 (June 2025)
Median Home Price
$229 (June 2025)
Price per Sq Ft
Up 5.4% year-over-year (median); average price up 1% year-over-year; some sources report -2.1% YoY (Zillow)
YoY Change

Market Performance

Days on MarketAverage 29-35 days (June 2025, estimate)
Market TypeSoft buyer’s market, trending toward full buyer’s market
Months of SupplyInventory up 36% YoY; 4,682 homes for sale in June 2025

Sales Activity

Sales VolumeSales growth projected at 27.1% YoY for 2025
Metro AreaColorado Springs MSA
Population~495,000 (city); ~755,000 (metro area)

Economic Indicators

Employment & Growth

Unemployment Rate~3.7% (2025 estimate, city)
Job Growth Rate~2.2% (2025 estimate)
Median Household Income$77,000 (metro, 2024 estimate)

Major Employers

  • US Air Force Academy
  • Fort Carson
  • Peterson Space Force Base
  • UCHealth
  • Colorado College
  • Lockheed Martin

Demographics

~495,000 (city); ~755,000 (metro area)
Population
34.7 years
Median Age
1.2% annually (2024-2025 estimate)
Population Growth
39% bachelor’s degree or higher (metro)
Education Level

Family Composition

Mix of young families, military households, and retirees

Key Industries

Defense & AerospaceHealthcareEducationTourismTechnology

Education

School District

Above average (District 20, District 11, Cheyenne Mountain D12 highly rated)
District Rating

Top Schools

  • Cheyenne Mountain High School
  • Discovery Canyon Campus
  • Pine Creek High School

Higher Education

  • University of Colorado Colorado Springs (UCCS)
  • Colorado College
  • Pikes Peak State College

Infrastructure & Development

Major Projects

  • Downtown Colorado Springs revitalization
  • US Olympic & Paralympic Museum expansion

Transportation

  • I-25 corridor upgrades
  • New BRT (Bus Rapid Transit) lines

Planned Developments

  • Multiple new home communities (north and east sides)
  • Mixed-use developments in downtown

Lifestyle & Amenities

Recreation

  • Garden of the Gods
  • Pikes Peak
  • Red Rock Canyon Open Space

Dining & Entertainment

  • Downtown restaurants and breweries
  • Shops at Briargate

Cultural Attractions

  • US Olympic & Paralympic Museum
  • Fine Arts Center
  • Pikes Peak Center for the Performing Arts

Investment Analysis

Investment Opportunities

  • Strong projected sales and price growth (27.1% and 12.7% YoY, respectively)
  • High rental demand from military and students
  • New construction in growth corridors

Growth Outlook

Positive for long-term investors; short-term volatility possible as market shifts to buyer leverage

Market Risks

  • Rising inventory and longer days on market
  • Potential for price corrections if supply continues to outpace demand
  • Interest rate sensitivity

Rental Market

Strong, with high occupancy and steady rent growth; price-to-rent ratio remains favorable for investors

Marketing Intelligence

Target Demographics

  • Military families
  • Young professionals
  • Move-up buyers
  • Investors

Marketing Channels

  • Zillow/Realtor.com
  • Facebook/Instagram
  • Local relocation networks

Pricing Strategies

List slightly below recent comps to drive competition; be prepared for price reductions if no offers in 2-3 weeks

Common Objections & Response Strategies

Objection: Market is softening; should I wait to buy?

Response Strategy:

Emphasize increased inventory, more negotiation power, and long-term appreciation potential.

Objection: Interest rates are too high.

Response Strategy:

Highlight rate buydown options, adjustable-rate products, and potential for refinancing later.

Objection: Homes are overpriced for current conditions.

Response Strategy:

Show recent price reductions, negotiate closing costs, and compare to rental costs.

Professional Recommendations

1

Advise sellers to price aggressively and stage homes to stand out.

2

Educate buyers on negotiation leverage and long-term value.

3

Target marketing to military and remote workers.

4

Monitor inventory and price trends weekly to adjust strategies.

5

Highlight local amenities and school quality in all listings.

Competitive Analysis

Comparable Markets

  • Denver, CO
  • Albuquerque, NM
  • Salt Lake City, UT

Market Positioning

Top-performing secondary market with high projected growth

Competitive Advantages

  • Lower median price than Denver
  • Strong military and tech job base
  • Outdoor lifestyle and amenities

Price Comparison

Median home price ~$100K lower than Denver; higher appreciation forecast than national average

Investment Metrics

5.2% (2025 estimate, SFR)
Cap Rates
~6% gross yield (metro average)
Rental Yields
~19 (favorable for investors)
Price-to-Rent
Positive cash flow possible in select submarkets, especially near bases and universities
Cash Flow
12.7% YoY (2025, Realtor.com forecast)
Appreciation

Buyer Journey Insights

First-Time Buyers

More options and negotiating power; down payment assistance available; must budget for higher rates.

Move-Up Buyers

Opportunity to sell at high prices and buy with less competition; consider bridge loans.

Downsizers

Can leverage equity; strong demand for low-maintenance and patio homes.

Investors

Attractive rental yields, especially in military/student corridors; watch for overbuilding in some segments.

Relocators

Robust relocation support; strong job market and lifestyle appeal.

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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