The Colorado Springs real estate market in 2025 is outperforming national averages, with a projected 27.1% increase in home sales and a 12.7% rise in home prices, compared to the national averages of 1.5% and 6.7%, respectively. The median home price is now $445,000, adding approximately $4,710 in monthly equity for homeowners. Inventory has grown significantly, with 3,918 active listings in October 2025 (up 15.4% year-over-year), creating a balanced market after years of tight supply. Homes are staying on the market longer, averaging 54 days, giving buyers more time to decide.
Key highlights:
- Mortgage rates hover around 6%, with VA loans offering competitive advantages, particularly for military families.
- New construction homes are meeting demand, offering energy-efficient features and layouts tailored to modern buyers.
- The rental market is rebounding, with rents expected to grow by 2.8% annually by late 2025, driven by strong demand and limited new supply.
- Military bases like Fort Carson and Peterson Space Force Base continue to anchor housing demand, benefiting both buyers and investors.
This market shift offers opportunities for buyers, sellers, and investors, particularly in neighborhoods near military installations and areas with growing rental demand.
Colorado Springs Real Estate Market Statistics 2025
Colorado Springs Housing Market in 2025
Home Prices and Available Inventory
After years of rapid growth, home prices in Colorado Springs have leveled off. By November 2025, the median sold price was $491,990, holding steady compared to the previous year. Similarly, the average sold price remained flat year-over-year at $551,605. Zillow reported an average home value of $440,488, reflecting a 2.5% decline over the past year, while Realtor.com listed a median price of $459,000, down 1.3% from the previous year. These slight dips suggest the market has settled into a period of balance following the post-pandemic boom.
Inventory has seen a notable increase. November 2025 recorded 3,555 active listings – 15% higher than the same time last year. Although October saw a peak of 3,918 active listings, November’s numbers still indicate more options for buyers. Homes are now spending an average of 54 days on the market, compared to 44 days a year ago. This uptick in inventory and market time gives buyers more breathing room to negotiate.
These shifts in pricing and inventory are closely tied to changes in financing conditions.
Mortgage Rates and Buyer Affordability
With current mortgage rates hovering around 6%, buyers in 2025 are carefully weighing their options. Stabilized home prices and increased inventory are helping to balance out the impact of higher borrowing costs. Even minor rate changes – like a 0.5 percentage point difference – can significantly influence demand, particularly for first-time buyers.
VA loans remain a key resource for military families stationed near Colorado Springs’ military installations. These loans, which typically require no down payment and waive private mortgage insurance, reduce both upfront and monthly costs compared to traditional financing. Additionally, Tralon Homes is offering VA and FHA buyers mortgage rates starting at 3.75%, making new construction homes more affordable for military personnel managing PCS (Permanent Change of Station) moves. For those leveraging Basic Allowance for Housing (BAH), these lower rates can make a significant difference in affordability.
This combination of improved financing options and VA loan benefits is also impacting the rental market.
Rental Market Performance
The rental market in Colorado Springs is bouncing back after a period of oversupply. Average rents currently stand at $1,454 per month, and after two years of declines, rents are expected to start growing again by mid-2025. By the end of the year, analysts predict annual rent growth of about 2.8%, fueled by strong demand and record absorption of 3,674 units in 2024 – a 50% jump from 2023. Looking ahead, over 2,500 rental units are projected to be absorbed in 2025.
Neighborhoods near military bases and high-demand areas like Northgate and Powers are seeing strong rental performance. North Colorado Springs is expected to lead the metro area with rent growth surpassing 3% in 2025. In Southwest El Paso County, rents have already grown by 0.7% over the past year, and occupancy rates are forecasted to hit 93.8% by late 2025. Meanwhile, the sharp decline in new multifamily construction – down 75% in 2024 to just 570 units – means fewer new rentals will compete for tenants. This reduced supply is helping to tighten vacancy rates and stabilize rents. For investors, these conditions present an opportunity to secure improved cash flows in areas with strong demand from military and professional tenants.
Why New Construction Homes Are in High Demand
Population Growth and Military Employment
Colorado Springs continues to draw new residents, fueling a steady demand for housing. In 2024, the metro area absorbed an impressive 3,674 apartment units – a jump of over 50% compared to 2023 – driven by population growth and fewer military relocations. Looking ahead, analysts predict an additional 2,500 units will be absorbed in 2025.
The area’s military bases play a big role in this housing demand. Fort Carson, Peterson Space Force Base, Schriever Space Force Base, and the U.S. Air Force Academy provide stable employment for active-duty personnel, veterans, and defense contractors. This steady job market makes Colorado Springs particularly appealing to families searching for long-term housing close to their workplaces.
Newly built homes are helping meet this rising demand, especially since the area remains more affordable than cities like Denver and Boulder along the Front Range. These population trends highlight why buyers are increasingly drawn to modern features that new homes offer.
What Today’s Buyers Want in New Homes
Homebuyers today are looking for features that older homes in Colorado Springs often lack. Energy-efficient designs, including improved insulation, high-efficiency HVAC systems, and low-E windows, are popular for their ability to cut utility bills. Open floor plans with spacious kitchens and flexible areas for remote work are now expected rather than seen as extras.
Military families, in particular, value main-level master bedrooms for easier transitions during PCS relocations. Ranch-style homes and two-story layouts with 3 to 5 bedrooms are highly sought after. Communities near military bases that offer parks, trails, and family-friendly amenities appeal to buyers seeking a balance between work convenience and quality of life. Additionally, smart-home features like programmable thermostats, integrated security systems, and EV-ready garages are becoming must-haves when comparing new homes to older ones.
A sharp 75% decline in multifamily construction starts in 2024 – down to just 570 units – has reduced competition in the market. This makes new construction even more attractive, as it offers modern amenities without the repair costs often associated with older homes.
VA Loans and Financing for Military Buyers
The appeal of new construction homes is further strengthened by accessible financing options, particularly VA loans. These government-backed loans remove common obstacles to homeownership for military families. With no down payment, no private mortgage insurance, and capped closing costs, VA loans make buying a new home more feasible for those who may face challenges saving during frequent relocations.
For military families utilizing their Basic Allowance for Housing, these financing options can lead to significant monthly savings. With the median home price in Colorado Springs holding steady at around $491,990, VA loans make new construction homes a competitive choice – even compared to older homes that might have lower upfront costs but require expensive updates or repairs.
In areas near Fort Carson and Peterson Space Force Base, VA loans are especially impactful. With new multifamily housing completions expected to drop by 85% in 2025, the reduced competition positions both existing and upcoming developments to attract buyers seeking modern, military-friendly homes.
Investment Returns and Risks for New Construction
Price Growth and Resale Value
Colorado Springs is leading the pack in the housing market, with Realtor.com’s 2025 forecast naming it the nation’s top market. The area is expected to see home prices rise by 12.7%, nearly double the national average of 6.7%. For homeowners, this means a chance to build considerable equity over the year.
New construction homes, with their modern designs and energy-efficient features, are poised to perform better in resale value compared to older properties. These homes are not only in growing supply but are often strategically located near military installations, making them particularly appealing to military families. This aligns with the projected 27.1% sales growth for 2025.
The market, which had surged post-pandemic, has now steadied. As of November 2025, the median home price is $491,990, showing little change from the previous year. Meanwhile, inventory has grown by 15%, reaching 3,555 homes. Zillow places the average home value at $440,488, reflecting a 2.5% dip over the past year. While there has been a short-term cooling, new construction homes continue to stand out thanks to their updated amenities and locations near military bases.
This steady appreciation also sets the stage for a thriving rental market, especially in areas close to military installations.
Rental Income Near Military Bases
Living near military bases isn’t just convenient for service members – it’s a boon for rental property owners too. Single-family rental homes near Fort Carson and Peterson Space Force Base enjoy steady demand, thanks to the consistent military presence in the region. While the rental market experienced a brief slowdown, it’s expected to bounce back by mid-2025, with an annual growth rate of approximately 2.8% predicted by the fourth quarter. Currently, average apartment rents in Colorado Springs sit at about $1,454, adding to the city’s reputation for affordability.
For larger rental properties, like three- or four-bedroom homes near military bases, monthly rents can exceed $2,500. In submarkets such as Southwest El Paso County – close to Fort Carson – occupancy rates are projected to reach 93.8% by the end of 2025. Homes near military facilities often command rental premiums of 5% to 10% over older properties. Additionally, with multifamily construction expected to drop by 85% in 2025, single-family rentals in prime locations should see stable demand and occupancy.
While the potential for returns is strong, it’s essential for investors to weigh the risks tied to this market.
Market Risks to Consider
One of the biggest challenges for investors is the uncertainty surrounding interest rates. Although home prices are expected to rise, any increase in mortgage rates could make homes less affordable, potentially slowing price growth. With inventory up 15% year-over-year – now at 3,555 homes – and sales down 6% as of November 2025, there’s a chance the optimistic 12.7% price growth prediction may not fully materialize.
Another factor to consider is the market’s reliance on military installations like Fort Carson, Peterson Space Force Base, Schriever Space Force Base, and the Air Force Academy. While the market has shown resilience, particularly in 2024, reduced military relocations or budget cuts could weaken demand.
Supply dynamics also bring some uncertainty. Multifamily construction starts plummeted by 75% in 2024, hitting a decade-low of just 570 units. This followed a period of overbuilding that caused rents to decline for eight consecutive quarters. Investors should approach cautiously, using conservative estimates of 3% to 5% annual appreciation rather than banking on the projected 12.7%. Planning for longer lease-up periods may also be wise in the current slower market.
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Where to Buy and What to Look For
Best Neighborhoods for New Construction
With inventory levels on the rise and pricing holding steady, choosing the right neighborhood is more important than ever. The current market conditions, marked by record-high inventory, provide buyers with plenty of options to explore and compare. Finding the ideal location often comes down to balancing commute times with lifestyle needs.
Northgate and the north I‑25 corridor are particularly appealing for Air Force Academy personnel and officers. These areas offer not only shorter commutes but also access to highly rated schools. The master-planned communities in this region are popular for families, maintaining strong rental demand and long-term resale potential.
Heading east, the Falcon, Meridian Ranch, and Eastonville area offers more space for the money while keeping Peterson Space Force Base and Schriever Space Force Base within a reasonable commute. This area is especially attractive to buyers who prioritize larger lots and to investors looking for affordable entry points with steady rental demand.
The Powers Corridor is another standout option, with new subdivisions benefiting from direct access to Powers Boulevard’s shopping, dining, healthcare facilities, and proximity to the airport. These conveniences make the area attractive to both renters and homeowners, potentially reducing vacancy rates and boosting resale value.
For those stationed at Fort Carson, southwest Colorado Springs and the Fountain/Security-Widefield area offer the shortest commutes to base gates. This region also boasts strong rental market fundamentals, with southwest El Paso County being the only area to see positive rent growth (0.7%) in 2024. Occupancy rates in this area are expected to hit 93.8% by the end of 2025, making it an appealing choice for rental property investors. The proximity to military installations aligns well with the broader market trend of delivering value near key employment hubs.
Tralon Homes: Military-Focused Home Builder
In these high-demand neighborhoods, working with a builder who understands military needs can add an extra layer of security to your investment. Tralon Homes has been catering to military families since 2009, constructing over 5,200 homes across 48 subdivisions. As a VA loan–approved builder, they specialize in meeting the unique requirements of armed forces personnel, particularly those navigating PCS relocations.
Their offerings include ranch-style homes with main-level master bedrooms and two-story designs, all built with energy-efficient features that appeal to modern buyers and renters. For military families dealing with tight relocation schedules, Tralon Homes’ move-in ready inventory can save months of waiting. Investors also benefit from predictable construction timelines and homes located near Fort Carson, Peterson Space Force Base, and the Air Force Academy.
"Our team possesses an intimate knowledge of the neighborhoods surrounding each military base. Whether you seek a tranquil retreat, an urban setting, or a family-friendly environment, we guide you toward the perfect community that suits your lifestyle."
- Tralon Homes
For buyers tackling the challenges of the 2025 market – whether remotely or under the pressure of a PCS move – partnering with a builder who understands VA loan requirements, offers transparent pricing, and provides solid warranty support can help minimize stress and unexpected costs.
Colorado Springs Market Update | December 2025
Conclusion
Colorado Springs continues to stand out as a top housing market in 2025, exceeding national averages in both sales growth and price increases. While inventory levels have risen and prices have eased slightly in recent months, the market’s foundation remains strong. Factors like steady population growth, a solid military employment base, and a relatively affordable cost of living fuel demand for both homes and rentals.
This steady performance creates an appealing climate for considering new construction. The market has shifted from its overheated pace to a more balanced state, offering buyers better negotiation opportunities while maintaining long-term growth potential. Key indicators like a 75% drop in construction starts during 2024, record-high net absorption, and a projected rent growth of 2.5%–2.8% annually by late 2025 underline the region’s resilience. Properties near major military bases are particularly well-positioned for stable returns as supply tightens and demand remains strong.
In this context, military-focused new construction plays an increasingly important role. Builders like Tralon Homes are meeting the market’s needs with practical, energy-efficient designs tailored to military families. With experience building over 5,200 homes in 48 subdivisions, Tralon Homes specializes in serving PCS relocations and VA loan buyers. Their modern floor plans and strategic locations near key military installations offer convenience and reliability. For military families working within tight timelines or investors seeking dependable construction and tenant demand, partnering with a builder that understands the nuances of base proximity and financing can simplify the process and reduce risks.
"Our team possesses an intimate knowledge of the neighborhoods surrounding each military base. Whether you seek a tranquil retreat, an urban setting, or a family-friendly environment, we guide you toward the perfect community that suits your lifestyle."
- Tralon Homes
Looking ahead beyond 2025, Colorado Springs is positioned for steady, sustainable growth rather than volatile market swings. Consistent population increases and limited new rental supply support strong resale values and reliable rental income. While interest rate fluctuations and economic changes pose challenges, the overall outlook favors buyers and investors who make thoughtful decisions during this balanced phase.
Whether you’re a first-time buyer, a military family planning your next move, or an investor expanding your rental portfolio, the improved inventory, positive forecasts, and tightening rental supply in Colorado Springs make new construction an attractive option for securing long-term value.
FAQs
What impact will rising home sales and prices in Colorado Springs have on buyers and investors?
The expected growth in home sales and rising prices in Colorado Springs might make it tougher for buyers – especially first-time buyers and military families – to find affordable options. On the flip side, this trend points to promising opportunities for investors, with potential for property values to increase and a growing need for newly built homes.
For buyers, moving quickly and considering options like energy-efficient, move-in-ready homes could be key to locking in a property before prices rise further. Meanwhile, investors may see this market as an attractive option, thanks to its steady growth and consistent demand for high-quality homes in desirable locations.
What benefits do VA loans offer military families buying homes in Colorado Springs?
VA loans offer tremendous advantages for military families planning to purchase homes in Colorado Springs. Among the standout benefits are no down payment, competitive interest rates, and no private mortgage insurance (PMI) – a combination that can lead to substantial savings over time.
On top of that, VA loans come with flexible credit criteria and a simplified qualification process. This makes it much easier for service members and their families to navigate the path to homeownership, especially when relocating to the area. These features work together to make owning a home both more affordable and within reach for those who serve.
Why are new construction homes so popular in Colorado Springs, and what makes them a great choice?
New construction homes in Colorado Springs are in high demand, thanks to their modern designs, energy-saving features, and options for personalization. Many of these homes showcase popular layouts, including ranch-style plans, main-floor master bedrooms, and roomy two-story designs. They’re especially appealing to military families and first-time buyers, offering quick move-in availability and convenient access to military bases like Fort Carson and Peterson Space Force Base, along with nearby city amenities.
Beyond their functional benefits, these homes make a solid investment. They require minimal maintenance and are often located in family-friendly neighborhoods featuring parks, trails, and other perks. With well-thought-out designs and easy access to local resources, they provide an ideal mix of comfort and convenience for residents of Colorado Springs.
