Would you invest in Colorado Springs Real Estate? Before you say yes or no let's take a look at all the different factors to consider when investing in real estate so you can be armed with the facts on whether or not you'd invest in Colorado Springs Real Estate as recently Norada Real Estate Investments named Colorado Springs the 17th best place to invest in real estate.
The sun sets over the Western Front Range Rocky Mountains just west of the Broadmoor Area in Colorado Springs - Photo by Nick Clement
Is the Colorado Springs Population Growing?
Colorado Springs has the 39th largest population in the United States while the city itself is the largest city by land area in the entire state of Colorado. Yet, the Colorado Springs real estate market continues to benefit from the fact that the Colorado Springs population continues to grow. The population in Colorado Springs has continued to grow at a steady rate and the population is predicted to be in a growth pattern through 2037. When it comes to the most populous city in Colorado, Colorado Springs is the 2nd largest city in the state of Colorado, after Denver.
Is there a high Renter Population in Colorado Springs?
When considering a real estate investment it is important to consider the general population and even more important is the renter population. According to a NeighborhoodScout report, renters compile about 41% of the entire Colorado Springs real estate market while the other 59% of the population owns homes which means 41% is still enough people in the Colorado Springs area to drive long term demand for rental properties, meaning that if you do decide to invest in Colorado Springs real estate you will most likely be set up for long term success. According to Norada Real Estate Investments. The average rent for an apartment in Colorado Springs in 2021 is $1,191, which is a 6% increase compared to the previous year.
How’s the Economy Doing in Colorado Springs?
The job market in Colorado Springs is roughly composed of 75% government jobs. The United States Air Force Academy, Peterson Air Force Base, Fort Carson Army Base, United States Olympic Committee, Olympic Training Center, and US Olympic and Paralympic museum are all examples of long-standing government entities in Colorado Springs that help boost and stabilize the Colorado Springs economy.
The United States Olympic and Paralympic Museum in Colorado was finished in 2021 and is in the center of the booming Downtown Colorado Springs Area - Photo by Nick Clement
These positive economic drivers equate to a strong Colorado Springs Real Estate market. Colorado Springs was ranked as the fifth-best city in the United States to find a job in 2019, according to a survey released by Wallethub.com.
Why will Colorado Springs always uphold its value?
In addition to the government entities that add value and stability to Colorado Springs there are many great assets Colorado Springs has that will always drive value to the city. One of our favorite bragging points is that Colorado Springs is home to one of two 5-star hotels in the state of Colorado: The Broadmoor Hotel
The Broadmoor Hotel, owned by Philip Anschutz is home to many world-renowned attractions, world-class restaurants, and an unparalleled lodging experience bringing in guests from the world over - Photo by Nick Clement
Another great asset that adds an extreme amount of value to Colorado Springs and its residents is the nature asset. In other words, Colorado Springs is situated in close proximity to an immense amount of open spaces, trails, and natural areas providing residents with great access to outdoor recreational opportunities.
Garden of the Gods Park is one of many great Colorado Springs City Parks situated within the City of Colorado Springs - Photo by Nick Clement
Colorado Springs is well known for the plethora of world-class trails and unique outdoor recreational opportunities such as the Manitou Incline. With an endless amount of things to do in the outdoors Colorado Springs boasts an outdoor opportunity for visitors and residents of all skill sets and activities. Whether you are an avid mountain biker, skier, or dog lover Colorado Springs has something outside to do for just about everyone. Check out the top 10 Wild Spaces around Colorado Springs.
Will Colorado Springs Real Estate Appreciate or Lose Value?
Colorado Springs real estate investors and property owners have historically experienced property appreciation. Last year, the Colorado Springs Real Estate Market appreciated by 7.6%. Since the year 2000, real estate has appreciated by 92%, at an annual average rate of 3.28% in Colorado Springs. While Colorado Springs is currently experiencing a can expect a Colorado Springs real estate investment to appreciate down the road based on the historical data.
A Buyer’s or Seller’s Market?
Currently, the Colorado Springs real estate market is experiencing a heavy seller's market. Low inventory and a very competitive set of buyers is driving the market to be even more heavily weighted towards sellers. We are commonly seeing a very competitive buyers landscape with some homes for sale seeing over 100 showings and over 20 offers all within a few day of being on the market. Granted, we see much more of this competitive landscape occurring in prices ranges under 500K. The market above 500K is still a competitive one but not as competitive and those lower prices ranges, especially if you are looking under 300K, then it gets very very competitive for buyers.
How Does Rental Property Perform in Colorado Springs?
Colorado Springs investment properties historically receive a strong return on their initial investment. We are seeing these strong returns in both short-term airbnb, vrbo rentals as well as long-term rentals. According to our data the best type of property with the strongest return is a condo. Search Condos for Sale in Colorado Springs.
Colorado Springs as seen from Old Stage Road - Photo by Nick Clement
Is Colorado Springs Real Estate Good Investment in 2022?
Yes, Colorado Springs continues to be a strong real estate investment assuming you can plan to rent the property to long-term tenants or plan to live in the property 180 days out of the year (owner-occupied) and rent it out short-term the rest of the year. This buy-and-hold real estate investment strategy has yielded a steady return for investors in the past and will continue to do so in the future.
Where Will an Investment Property Generate the Highest ROI in Colorado Springs?
The following are the best neighborhoods in Colorado Springs for investing in traditional rental properties:
10 Best Neighborhoods in Colorado Springs
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To start your Colorado Springs real estate investing journey, use ColoradoSprings.Homes to find and analyze top-performing properties in Colorado Springs and please don't hesitate to reach out with any questions you may have: 719-540-6421Posted by Nick Clement on