Colorado Springs Real Estate Market 2026: Score 5, What the Data Shows

Colorado Springs has one of the steadier labor markets in the Mountain West. Unemployment sits at 3.6% as of November 2025, anchored by a large military and defense presence. Median household income is $87,180. The metro is home to roughly 761,000 people.

PropertyIQ scores Colorado Springs a 5 out of 100 as of May 31, 2026. That is an F, and it is one of the lowest readings of any major U.S. metro.

The gap between a stable local economy and a near-bottom market score tells the story of what happens when prices run ahead of incomes and supply catches up.

The Score

A score of 5 places Colorado Springs among the weakest markets in the country. The PropertyIQ Score is forward-looking: it estimates how a market is likely to perform over the next few years relative to its state, where 50 is the state average. A 5 means the model expects Colorado Springs to meaningfully underperform the typical Colorado market.

That expectation is built on the market's demand signal — home-value momentum, how long homes sit, and the share of listings cutting price. Right now all three lean weak: recent momentum has turned slightly negative, homes take 46 days to sell, and 25.4% of listings have cut their price.

What stands out is the direction. The score climbed to 23 in February 2026, then fell every month since.

A brief late-winter bounce has fully unwound. As of May 2026, the market is back in deep buyer territory and trending down.

Current Market Conditions

The Zillow median home value in Colorado Springs is approximately $457,300 as of May 31, 2026. The median listing price is $498,000 as of May 1, 2026, at about $239 per square foot.

Home values are down 3.3% year over year as of May 2026, and essentially flat month over month at -0.1%. The five-year appreciation figure is just 1.04% — meaning the pandemic-era run-up has been almost entirely corrected away.

Zillow's forecast calls for a further -0.8% over the coming year (as of December 2025).

The Supply Picture

Colorado Springs has 3,540 homes for sale as of May 1, 2026, up 10.3% year over year. Supply is building even though new listings (1,668) are down 3% from a year ago — a sign that homes are accumulating because they are not selling, not because more are coming to market.

Homes take 46 days to sell, and 25.4% of active listings have cut their price. New construction continues to add to the pile: the metro logged 125 new-construction sales in April 2026 at a median of $529,950 — well above the resale median, pulling buyers toward builder incentives.

Affordability and Overvaluation

This is the core of the score. By PropertyIQ's valuation model, Colorado Springs is roughly 49.9% overvalued relative to local incomes as of May 31, 2026.

The income required to buy a median-priced home is about $133,935 — well above the metro's $87,180 median household income. A typical buyer would need 9.5 years to save a standard down payment, and the "affordable" home price for a median earner is closer to $324,154 than the current $457,300 value.

When prices sit that far above what local incomes support, it takes either income growth, price declines, or lower rates to close the gap. Two of those three are working against the market right now.

The Investor View

For buy-and-hold investors, the rental math is thin. The typical rent is about $1,767 per month, producing a gross yield near 4.6% and a cap rate of roughly 2.8% as of May 31, 2026. At a gross rent multiplier above 21, Colorado Springs is a low-cash-flow market where returns depend heavily on appreciation — and appreciation is exactly what the data says is missing right now.

What the Data Shows

A score of 5 reflects a clear signal: despite a stable local economy, Colorado Springs is positioned to underperform the broader Colorado market over the next few years. Weak price momentum, rising supply, and a high share of price cuts all point the same direction.

None of that is a verdict on the city's long-term appeal — the labor market is intact and the population base is solid. It is a measurement of where the market sits in its cycle today, and what that has tended to mean for performance ahead.

As of May 2026, the signal sits near the bottom of the scale. The score is 5.

PropertyIQ score, home value, rent, valuation, and investor metrics as of May 31, 2026. Listing, inventory, days-on-market, and price-cut data as of May 1, 2026. New-construction price data as of November 2025. Forecast data as of December 2025. Census data as of 2023. Unemployment data as of November 2025. All data for informational purposes only and not the sole basis for an investment decision.