The Growing Gap Between Wages and Housing Costs in Colorado Springs
What it Means for Homebuyers—and What You Can Do About It
If it feels like everything has gotten more expensive lately, you’re not imagining things—and housing is leading the charge. Whether you’re thinking about moving to Colorado Springs, watching the market from the sidelines, or trying to figure out how to finally break into homeownership, you’re probably wondering the same thing: Can I even afford a home in Colorado Springs anymore?
Let’s dig into one of the biggest challenges facing buyers today—the growing gap between wages and housing costs—and explore what’s happening locally in Colorado Springs. We’ll look at how we got here, who’s being hit the hardest, and most importantly, what you can do if you’re feeling stuck.
What’s Going On With Housing Affordability?
Housing affordability has become a buzzword in national headlines and political debates—but for a lot of people, it’s not just buzz. It’s personal. Home prices are rising. Interest rates have increased. Insurance costs, maintenance, and utility bills aren’t getting cheaper either.
Meanwhile, wages just aren’t keeping up.
In a balanced market, it’s generally recommended that people spend no more than 25–30% of their income on housing. But today? More and more people are stretching themselves to spend 30 to even 40% of their income just to keep a roof over their heads.
This isn’t just about owning a home—it’s about being able to live. If you’re spending nearly half your income on housing, what’s left for everything else?
The Domino Effect of Housing Costs Outpacing Income
When Housing Eats Your Budget
Let’s put this in real-life terms. Imagine your paycheck comes in, and before you even think about groceries, gas, medical expenses, or saving for the future, 30–40% is already gone to your mortgage or rent. That’s the reality for a lot of people right now.
And it’s not just homebuyers. Renters are in the same boat. Rent prices have gone up right alongside home prices, especially in a city like Colorado Springs that’s seen significant population growth and demand.
Sacrificing Essentials for Shelter
So where do people cut back? We’re seeing folks:
- Delay health care or skip prescriptions
- Opt out of trips, even to visit family
- Scale back grocery bills
- Push off retirement contributions or emergency savings
- Share housing with family or roommates longer than expected
These aren’t small lifestyle tweaks—they’re major, long-term sacrifices just to cover the cost of housing.
A Delayed Start: How the Affordability Gap Is Impacting Young Adults
One of the most alarming shifts is how affordability is delaying major life milestones for young adults.
First-Time Buyers Are Getting Older
According to recent data, the average age of a first-time homebuyer is now 38 years old. That’s a huge jump from previous generations, where people often bought their first home in their 20s or early 30s. Why the delay?
Because homeownership feels out of reach.
People are putting off:
- Getting married
- Starting a family
- Buying their first home
- Building long-term financial stability
In fact, many are living with roommates (or even parents) well into their 30s and 40s—not because they want to, but because it’s the only financially viable option.
What’s Happening Here in Colorado Springs?
If you’re living in Colorado Springs—or considering a move here—you’re probably wondering how all this plays out locally.
Home Prices Continue to Climb
Even with national concerns about a market slowdown, home values in Colorado Springs have remained strong. Inventory is still relatively low, and while new construction is helping, it hasn’t caught up with demand. According to recent PPMLS data, the average home price in the area hovers around $550,000–$560,000.
That’s the average. There are still homes priced below that, but for a first-time buyer, that price tag is tough—especially when you factor in:
- Rising mortgage interest rates
- Property taxes
- Homeowner’s insurance
- HOA fees (in many communities)
Insurance and Utility Costs Are Up Too
It’s not just the sticker price of a home. The ongoing costs of ownership have gone up too. Utility bills, homeowners insurance, and repair costs have all increased. So even if you “can” buy the home, maintaining it is a separate challenge.
A Bigger Problem Than Just One Person’s Budget
Here’s the thing: This is not a personal failure. You’re not alone, and it’s not because you haven’t budgeted well or skipped enough lattes.
This is a community-wide problem—and in many ways, a national one.
When workers can’t afford to live in the communities they serve, it creates a ripple effect:
- Teachers, nurses, and service workers are being priced out of neighborhoods they support.
- People are commuting longer distances, adding stress and costs to already tight budgets.
- Local businesses struggle to retain employees who can’t afford to live nearby.
So What Can Be Done?
Let’s be honest—there’s no overnight solution. But there are some efforts already in place, and some ideas worth considering.
1. More Affordable Housing Options
There are homes in Colorado Springs below the average sales price—some in the high $300s and low $400s, depending on location and features. Builders and developers are starting to include smaller, more efficient floor plans aimed at entry-level buyers.
We also see creative solutions like:
- Accessory dwelling units (ADUs)
- Duplexes and multi-generational homes
- Redevelopment of underused commercial spaces into housing
While “affordable” is subjective, there are more accessible price points than many buyers realize.
2. Incentives for First-Time Buyers and Frontline Workers
Colorado offers several programs designed to help close the affordability gap:
- CHFA (Colorado Housing and Finance Authority) down payment assistance
- Special loan products for first responders, teachers, and veterans
- Builder and lender incentives for those entering the market
If you’re buying your first home in Colorado Springs, there may be more help available than you think.
3. Addressing the Wage Side of the Equation
This is the hardest and most political part of the puzzle—but one of the most critical.
Right now, Colorado ranks 48th in the country for teacher pay. That’s a stat that sticks. If essential community workers can’t afford to live where they work, we’re going to have a hard time attracting and retaining talent.
Closing the wage gap—raising salaries to match the cost of living—is a crucial step toward fixing this issue long term.
How We Help Buyers Navigate These Challenges
At My Front Range Living, we get it—this market is complicated and emotional. And we’re not here to sugarcoat it.
What we are here to do is help you find what is possible.
- We’ll walk you through available incentive programs you may qualify for.
- We’ll connect you with lenders who specialize in creative financing for first-time buyers.
- We’ll help you explore neighborhoods that fit your budget and your lifestyle.
- And we’ll make sure you understand the true cost of ownership, not just the price on the listing.
Even in a challenging market, there are opportunities—you just need someone who knows where to look and how to advocate for your best interests.
Final Thoughts: You’re Not Alone—And There Are Options
If you’re feeling the pressure of the affordability gap in Colorado Springs, you are far from alone. This isn’t just your problem. It’s a regional and national issue. But that doesn’t mean there’s nothing you can do.
You don’t have to figure it all out yourself.
Let’s talk about your specific situation. Whether you’re wondering if now is the time to buy, want to understand local pricing better, or just need someone to bounce questions off of—we’re here.
📞 Ready to Take the Next Step?
✅ Book a free consultation (via Google Meet)
✅ Visit MyFrontRangeLiving.com
We’ll meet you where you are and help you plan a path forward—no pressure, no pushy sales talk. Just honest, helpful guidance.
About The Author
The team at My Front Range Living are a group of full time real estate experts serving Colorado Springs, El Paso County and the surrounding areas. Their knowledge of the local community and experience in the industry provide you incomparable value when buying or selling a home. With several years of experience in helping out of state buyers and sellers, they are the go-to team when it comes to relocating and helping Colorado feel like home. Click Here to book a consultation with us.
Even if you’re looking for an agent in another city or state, the My Front Range Living team has a network of experts that can connect you with the right professional.
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