The Colorado Springs real estate market in 2026 is poised for steady growth amid national trends of moderating prices and increasing inventory. With a mix of military relocations, outdoor appeal, and economic stability from sectors like tech and defense, the area continues to attract buyers and investors. As of early 2026, median home prices stand around $491,900, down a bit from last year, offering opportunities for first-time buyers while sellers navigate a more balanced landscape.
Key Market Trends in Colorado Springs for 2026 Home sales are expected to rise modestly, with the National Association of Realtors projecting a 4% price increase nationally, influenced by job growth and low supply. Locally, inventory has risen slightly to about 1.8 months’ supply, easing the intense competition seen in 2021. This shift means homes spend 30-45 days on market, up from previous years, giving buyers more negotiating power for concessions like closing costs or repairs.
Interest rates, forecasted to hover around 6-6.5% for 30-year mortgages, will impact affordability. However, Colorado Springs’ diverse economy—bolstered by employers like UCHealth and the Space Foundation—supports stable demand. Expect continued appreciation in high-desire areas, with homes appreciating 3-5% annually.
Popular Neighborhoods and Buyer Insights Neighborhoods like Briargate and Northgate remain hot for families, offering top schools and proximity to trails, with median prices $550,000+. Military buyers favor Fountain or Security-Widefield for affordable options near Fort Carson, often under $450,000. Downtown and Old Colorado City appeal to young professionals with urban vibes and historic charm, starting at $350,000 for condos.
First-time buyers benefit from builder incentives in new developments like Cordera, where energy-efficient homes qualify for rebates. Sellers should focus on updates like modern kitchens or walk-out basements to stand out.
Challenges and Opportunities Rising costs (e.g., insurance up 10% due to wildfire risks) and a city budget shortfall could pressure infrastructure, but growth in remote work sustains influx. For investors, rentals yield 5-7% returns in areas like Peyton.
Stay informed with local data from the Pikes Peak Association of Realtors or national forecasts via NAR’s Economic Outlook.
Whether buying or selling in the Colorado Springs real estate market, timing is key. Call, text, or visit thebaconpartners.com/contact for personalized advice from me.
Want to learn more about what Real Estate Agents do? Check out my article here on What Real Estate Agents Do: A Behind-the-Scenes Look in Colorado Springs.
I’m Andrew Bacon, a Top Colorado Springs Real Estate Broker in Colorado Springs. I take care of my clients as family and aim to provide them with the necessary information and tools to navigate the complex markets in Colorado and around the US.
As a member of the Pikes Peak & Denver Metro Association of Realtors, I enjoy staying aware of current cultural trends and economic drivers.Check back regularly for new articles on all things real estate along Colorado’s Front Range.
More Articles
- Top Ski Resorts Near Colorado Springs: Your Winter Getaway Guide
Ski resorts near Colorado Springs offer incredible options for locals and visitors seeking quick mountain escapes without long drives. With our city’s proximity to the Rockies, several world-class destinations are just 2–3 hours away, making day trips or weekend getaways easy and affordable. Here’s a… Read more: Top Ski Resorts Near Colorado Springs: Your Winter Getaway Guide - Ongoing I-25 Construction in Colorado Springs: Fillmore to Garden of the Gods Update
The I-25 construction in Colorado Springs project is transforming traffic flow along a key stretch, with ongoing work between Fillmore Street and Garden of the Gods Road aimed at enhancing safety and efficiency. Launched in late October 2023, this $62 million initiative addresses congestion in… Read more: Ongoing I-25 Construction in Colorado Springs: Fillmore to Garden of the Gods Update - Is Home Equity Fake Wealth in Colorado Springs Real Estate?
Is home equity fake wealth? In Colorado Springs, where home values have surged 20-30% since 2020 due to low inventory and high demand, this question is more relevant than ever. Home equity—the difference between your home’s market value and mortgage balance—feels real when prices rise,… Read more: Is Home Equity Fake Wealth in Colorado Springs Real Estate? - Difference Between an ILC and a Survey in Real Estate
The difference between an ILC and a survey in real estate is crucial for home buyers and sellers in Colorado Springs, where property boundaries and improvements can impact transactions amid our hilly terrain and growing suburbs. An Improvement Location Certificate (ILC) is a limited certification… Read more: Difference Between an ILC and a Survey in Real Estate - Google Is Entering the Portal Wars with MLS Listings: What It Means for Colorado Springs
Google is entering the portal wars with MLS listings through its new Google Home Listings feature, which now pulls real-time data directly from the Multiple Listing Service (MLS) for more accurate property searches. Announced in late 2025 and rolling out in early 2026, this move… Read more: Google Is Entering the Portal Wars with MLS Listings: What It Means for Colorado Springs - Owning Your First Short Term Rental in Colorado Springs: A Beginner’s Guide
Owning your first short term rental in Colorado Springs can be a rewarding way to build wealth and generate income, thanks to our city’s year-round tourism, military relocations, and outdoor attractions. From Pikes Peak visitors to families exploring Garden of the Gods, demand for short-term… Read more: Owning Your First Short Term Rental in Colorado Springs: A Beginner’s Guide
