Colorado Springs CO Real Estate Market 2026: What the Data Shows

Colorado Springs, Colorado does not yet have a PropertyIQ Score. It is a market that comes up frequently in conversations about Front Range alternatives to Denver, and the data deserves a direct look. The headline number worth knowing before anything else: Colorado Springs is 46.8% overvalued relative to local incomes as of February 2026.

---

Colorado Springs Market Overview (as of February 2026 unless noted)

Colorado Springs is the second-largest city in Colorado, with a metro population of approximately 760,782 (Census, 2023). Its economy is built on a substantial military presence including Fort Carson, Peterson Space Force Base, Schriever Space Force Base, and NORAD. That base provides demand stability that many comparable metros lack.

Home values: The Zillow home value index was $453,304 as of January 31, 2026. The median listing price is $488,410 as of February 2026. Home values rose 1.75% year-over-year and 2.82% month-over-month as of February 2026.

Overvaluation: At 46.8% overvalued relative to local incomes as of February 2026, Colorado Springs carries one of the higher overvaluation readings among mid-size metros. The median household income is $87,180 (Census, 2023). The estimated income required to purchase at current prices is $129,817. The estimated affordable home price for a median-income household is $327,996, approximately $125,000 below the current median listing price.

Inventory: For-sale inventory rose 21.12% year-over-year to 2,764 homes as of February 2026. New listings rose 24.72% to 1,322. Supply is expanding noticeably. The pending count of 1,316 is nearly equal to new listings, which means the market is absorbing most of what arrives, but the inventory overhang from prior months is growing.

Days on market: 54 days as of February 2026. Faster than Chattanooga and Albuquerque but not a tight market.

Price cuts: 19.2% of listings took a price cut as of February 2026. Nearly one in five sellers has adjusted asking price.

Pending ratio: 1,316 pending against 2,764 active as of February 2026, a pending ratio of 47.6%.

Sale-to-list ratio: 99.6% as of November 2025. Sellers are broadly achieving asking price once a buyer engages, but the combination of rising inventory and a high price-cut rate indicates that list prices are being set with more caution.

---

Rent and Investment Fundamentals

The Zillow Observed Rent Index for Colorado Springs was $1,688 per month as of December 31, 2025. At a Zillow home value of $453,304, this produces a gross rent multiplier of approximately 22.4x. That is a thin yield environment. Cash flow on a conventionally financed purchase at current prices and rates requires careful underwriting.

Price per square foot is $237 as of February 2026. New construction sales totaled 103 units as of November 2025. The five-year appreciation figure is 9.76% as of February 2026.

Zillow's 12-month home price forecast as of December 2025 is -0.8%. That is the only market in this batch with a negative price forecast. It reflects the overvaluation pressure, inventory expansion, and affordability stretch that the underlying metrics confirm.

---

The Military Demand Floor

The military anchor in Colorado Springs is real and meaningful. Fort Carson alone employs over 25,000 active-duty soldiers. That is a recurring, non-cyclical demand base for housing. Military buyers and renters do not disappear during recessions the way private-sector workers can. This is the primary structural argument for Colorado Springs over comparably priced and comparably overvalued markets without that demand floor.

The median age in the metro is 35.4 (Census, 2023), one of the younger profiles in Colorado, which supports household formation. Homeownership rate is 66.99%.

---

Employment and Income

Unemployment in Colorado Springs was 3.6% as of November 2025. At $87,180, the median household income is one of the higher readings among non-coastal metros of this size, driven by the military officer and civilian contractor workforce. The income base is solid. The problem is that home prices have grown faster than income over the past five years, creating the 46.8% overvaluation gap.

---

Preliminary Read (Without a PropertyIQ Score)

Colorado Springs is a market with a genuine demand anchor in military employment, a young population, and solid income fundamentals. The problem is price. At 46.8% overvalued with a negative 12-month forecast and inventory expanding at 21%, the near-term appreciation case is weak.

For buyers who need to be in Colorado Springs for professional reasons, the military stability provides a reasonable long-term argument. For speculative appreciation buyers or yield-seeking investors, the current numbers do not support either thesis at current prices.

The PropertyIQ Score, when available, will incorporate supply trends, demand dynamics, economic fundamentals, and overvaluation into a single index. Check the Colorado Springs market page for score status.

---