Will You Be Able To Buy A Home in 2025?
Home Affordability in Colorado Springs: What You Need to Know in 2025
If you’ve been thinking about buying a home in Colorado Springs, you’ve probably noticed that affordability is a major concern. Between rising home prices, high mortgage rates, and increasing insurance costs, many people are wondering if homeownership is even worth it anymore. However, despite these challenges, homeownership is still possible with the right strategy. Let’s break down the current state of the market, the obstacles buyers face, and some solutions that can help make homeownership more attainable.
The State of Home Affordability in 2025
Home Prices Are Higher Than Ever
Over the past five years, home prices have skyrocketed, making affordability a serious issue. In 2019, the national median home price was around $275,000. Fast forward to 2025, and that number has jumped to over $400,000. This increase is particularly pronounced in Colorado Springs, where demand remains high due to the city’s strong job market, desirable location, and quality of life.
If you were looking at a home in Colorado Springs five years ago that was affordable, chances are that same home is now out of reach for many buyers. This price surge means that even if you’re earning more than you were a few years ago, homeownership may still feel like an uphill battle.
Mortgage Rates: The Silent Budget Killer
It’s not just home prices that are squeezing buyers—mortgage rates have climbed significantly. Just a few years ago, during the pandemic, rates were at historic lows around 3%. At that rate, a $350,000 home would have had a monthly mortgage payment of about $1,500. Fast forward to today, and with rates hovering around 7%, that same mortgage now costs closer to $2,500 per month—a difference of $1,000 per month.
Why are rates so high? The Federal Reserve has raised interest rates to combat inflation, and mortgage rates have followed suit. While they have come down slightly from their peak, they’re still much higher than they were just a few years ago.
Additional Costs Making Homeownership More Expensive
Rising Homeowners Insurance Costs
Another factor making homeownership more expensive is the rising cost of homeowners insurance. Events such as wildfires, wind damage, and hailstorms have increased insurance premiums across Colorado. In some cases, insurance costs have doubled in recent years, adding hundreds of dollars to monthly mortgage payments. Additionally, some insurance companies have pulled out of high-risk areas, leaving homeowners with fewer options and higher costs.
Property Taxes and HOA Fees
As home values increase, so do property taxes. In Colorado Springs, homeowners have seen a steady rise in property taxes over the last several years, further adding to the cost of owning a home.
Additionally, if you’re purchasing a home in a neighborhood with a homeowners association (HOA), you’ll likely have to factor in monthly HOA fees. These fees cover community maintenance and amenities, but they have also increased as insurance costs and building maintenance costs rise.
Maintenance and Repairs
Owning a home isn’t just about making a mortgage payment—you also need to budget for maintenance and repairs. On average, homeowners should expect to spend 1–3% of their home’s value per year on upkeep. That means for a $400,000 home, you might need to budget an additional $4,000 to $12,000 annually for repairs, including roofing, plumbing, HVAC systems, and general maintenance.
Is Buying a Home in Colorado Springs Still Worth It?
Despite these rising costs, homeownership remains a strong long-term investment. Unlike renting, where monthly payments disappear into a landlord’s pocket, owning a home allows you to build equity over time. And while interest rates may be high now, they can always be refinanced when rates drop.
So, should you buy a home in 2025? The answer depends on your financial situation, goals, and willingness to explore creative ways to reduce costs.
How to Make Buying a Home More Affordable
1. Buy Down Your Interest Rate
Many lenders allow buyers to pay upfront to lower their mortgage rate. In some cases, sellers may even offer to cover part of this cost as an incentive. A lower interest rate means a more affordable monthly payment.
2. Look for Homes With Lower Property Taxes and Insurance Costs
Not all homes have the same tax and insurance burdens. Shopping around for properties in areas with lower tax rates or less risk of natural disasters can significantly reduce your monthly costs.
3. Negotiate With Sellers
The real estate market in 2025 is shifting, and sellers are often willing to offer concessions. This can include lowering the price, covering closing costs, or offering an interest rate buydown. Having an experienced real estate agent can help you negotiate the best possible deal.
4. Expand Your Search Area
While living in the heart of Colorado Springs may be ideal, expanding your search to nearby areas like Falcon, Peyton, Fountain, Widefield, or even Woodland Park can provide more affordable options without sacrificing proximity to the city. These areas often have lower home prices and property taxes.
5. Consider New Construction
Many home builders offer incentives such as design credits, closing cost assistance, or lower mortgage rates through their preferred lenders. While new construction isn’t always the cheapest option, the incentives can make it more affordable than purchasing an existing home in some cases.
Final Thoughts
Yes, homes in Colorado Springs are expensive right now. Yes, interest rates are high. But that doesn’t mean homeownership is out of reach. By exploring financing options, negotiating with sellers, and expanding your search area, you can still find a home that fits your budget.
If you’re thinking about buying a home in 2025, the best advice is to do your research, compare lenders, and work with a knowledgeable real estate agent who can guide you through the process. And most importantly, buy a home that fits your budget—one that allows you to live comfortably without financial strain.
So, what’s the biggest challenge stopping you from buying a home right now? Is it high mortgage rates, insurance costs, or property taxes? We’d love to hear from you and help you navigate the homebuying process in Colorado Springs!
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.
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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