Is Colorado Springs Real Estate Still Affordable? A 2025 Market Reality Check
If you’ve been eyeing a move to Colorado Springs or just trying to figure out what’s really going on with home prices here, this post is for you. Home affordability is a buzzword we’re hearing everywhere—from national news outlets to coffee shop conversations. But what does affordability actually look like in the Colorado Springs housing market right now?
We’ve broken down the latest stats from March 2025, looked at year-over-year trends, and added a hefty dose of local insight to help you navigate the current real estate landscape. Whether you’re relocating, buying your first home, or just keeping tabs, let’s dive into what’s really happening on the ground.
The Big Picture: Inventory and Buyer Demand in Colorado Springs
Before we get into affordability, let’s look at what’s actually happening in the market. The number of new listings for single-family homes in the Pikes Peak MLS (which includes Colorado Springs and surrounding areas) rose to 1,677 in March 2025, up from 1,181 in February. That’s a significant jump—and even more notable when you look at the year-over-year data: March 2024 had only 1,337 listings.
What does this mean?
More inventory is entering the market, but it’s not necessarily outpacing demand. In fact, home sales increased from 730 in February to 1,059 in March 2025. That’s nearly keeping pace with the new inventory, which tells us buyers are still active and homes are moving.
Let’s break it down:
- Year-over-year new listings: +340 homes
- Year-over-year sales: +118 homes
This balance between new inventory and buyer demand is keeping the market stable and competitive, especially in key price segments.
Are Home Prices Dropping in Colorado Springs?
This is where it gets interesting. Despite many headlines suggesting home prices are softening, that’s not what we’re seeing locally.
- February 2025 Average Sales Price: $544,000
- March 2025 Average Sales Price: $562,500
- March 2024 Average Sales Price: $527,600
That’s a $25,000 increase year-over-year, and nearly a $20,000 month-over-month jump. So, while it may be a buyer’s market in terms of negotiating power, it’s not translating into dramatic price drops.
Why Is It Still Considered a Buyer’s Market?
Even though prices are going up, the way buyers are negotiating has changed. We’re seeing:
- Fewer bidding wars
- More time on the market
- Sellers more willing to offer concessions (like covering closing costs or offering rate buy-downs)
The main point: buyers are negotiating perks, not price.
This shift is especially meaningful for first-time buyers or relocators who are navigating a new market. It’s no longer about who can offer the highest price the fastest—it’s about finding terms that benefit both parties.
What Does “Affordable” Actually Mean in Colorado Springs?
Let’s break it down by price point. Here’s how many single-family homes were available in March 2025 by price range:
- $0–$200,000: 6 homes (likely serious fixers)
- $200,000–$300,000: 31 homes
- $300,000–$400,000: 221 homes
- $400,000–$500,000: 445 homes
- $500,000–$600,000: 369 homes
- $600,000–$800,000: 427 homes
If your budget is under $300K, your options are slim—just 37 homes total in that price range. Even under $400K, there are only 258 homes available. The bulk of inventory sits between $400K and $800K, which is a reality check for many out-of-state buyers used to different price norms.
Why That $400K–$800K Range Matters
That range represents the sweet spot for Colorado Springs homebuyers. It includes everything from newer suburban builds to established homes in mature neighborhoods. While it may not seem affordable to some, it offers the best chance of finding a move-in-ready home with desirable features like:
- Updated kitchens and bathrooms
- Larger lot sizes
- Proximity to parks, schools, and local amenities
- Mountain views or access to trails
It’s also where many of the most competitive negotiations are happening. Buyers here are most likely to secure concessions or favorable closing terms.
What’s Driving the Perception of Unaffordability?
Home affordability isn’t just about listing price. There are several other major players that are impacting what buyers can afford month to month:
1. Interest Rates
Higher interest rates mean higher monthly payments. A rate increase of just 1% can reduce your purchasing power by tens of thousands of dollars. Even if the home price stays flat, the total cost of ownership rises.
2. Insurance Premiums
With wildfire risk, inflation, and changes to underwriting guidelines, homeowners’ insurance in Colorado has been on the rise. Some buyers are shocked when their insurance quote comes back much higher than expected.
3. Property Taxes
Local property taxes have risen in recent years, especially in growing neighborhoods and areas with new infrastructure improvements.
Together, these three factors can make even a moderately priced home feel out of reach—especially for first-time buyers who are also contending with student loans or lower down payments.
How Buyers Are Making It Work in Today’s Market
Despite these challenges, people are still buying homes—and doing it smartly. Here are some ways they’re succeeding:
- Concessions from sellers: Many sellers are offering 2-1 buydowns, credits toward closing costs, or even cash for repairs.
- Creative financing options: Adjustable-rate mortgages, down payment assistance programs, and VA loans are all helping buyers stay in the game.
- Broadening their search: Buyers are looking slightly outside of the core city to neighborhoods like Falcon, Fountain, and Peyton to find better deals.
- Focusing on long-term gains: Even if the market feels tight now, buyers know that homeownership builds equity over time, making it a smart long-term move.
Price Reductions: Are Sellers Slashing Prices?
You might be hearing that lots of sellers are cutting prices left and right—but the numbers tell a different story:
- Only 30% of homes in the $400K–$800K range have seen price reductions.
- When reductions happen, they average just 2–3%.
That’s not exactly a fire sale. In most cases, these small reductions are fine-tuning strategy, not signs of panic.
More impactful are the non-price incentives sellers are offering, like paying for:
- Closing costs
- Rate buydowns
- Repairs or upgrades
- HOA fees
Days on Market: Buyers, Take a Breath
The average days on market is now 62 days. That’s over two months, and it’s a significant shift from the hyper-competitive environment of 2020–2021.
Sellers, this means it may take longer to sell your home—but that’s not necessarily a bad thing. With more time on market, you’re more likely to attract serious buyers.
Buyers, you finally have room to breathe. Gone are the days of writing offers sight-unseen. Now, you can:
- Schedule multiple showings
- Explore different areas of town
- Have a home inspection and negotiate fairly
This slower pace supports more thoughtful decisions, which is especially important for out-of-state buyers or first-timers.
Neighborhood Spotlight: Where Value Still Exists
Here are a few neighborhoods in the greater Colorado Springs area where buyers are still finding excellent value:
Fountain
- Homes under $400K
- Close to Fort Carson
- Rapid development but with small-town feel
Falcon/Northeast
- Newer builds with community amenities
- Often priced lower per square foot
- Easy access to schools and shopping
Westside/Old Colorado City
- Quirky, historic homes
- Walkable areas
- Inventory varies widely, but some gems under $500K
These areas offer a mix of affordability and quality of life that many buyers are looking for.
What Buyers Should Be Doing Now
If you’re thinking about moving to Colorado Springs, here’s what to do:
- Get pre-approved so you know your true budget.
- Download our relocation guide to learn about neighborhoods, schools, and lifestyle perks.
- Work with a local expert who knows how to leverage today’s buyer market.
Remember, the best deals aren’t always about price—they’re about terms.
What Sellers Should Keep in Mind
If you’re thinking of selling, here are a few tips:
- Price realistically from the start.
- Be prepared for longer days on market.
- Offer concessions to sweeten the deal for buyers.
- Make sure your home is in top showing condition.
Marketing matters more than ever. With more inventory on the market, your listing needs to stand out.
Final Thoughts: Affordable or Overpriced?
The answer is… both. Colorado Springs remains a desirable, growing market. While prices are up, there’s more room for negotiation and more inventory to choose from. That’s a big win for buyers who come in prepared.
If you’re relocating or just want a better handle on what’s happening in the Colorado Springs real estate market, let’s chat. We’re here to help you make a smart move—no pressure, no gimmicks, just honest advice.
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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