The Colorado Springs area continues to grow, rather rapidly now. Over the last several years, Colorado Springs has been climbing the ranks of the US News “125 Best Places to Live in the US” list. In 2018, we passed Denver and occupy the #2 spot, with Denver at #3. We also ranked #3 on a list from Navy Federal Credit Union as one of the Best Places to Retire for Veterans according to USA Today. As we drive around, we see evidence of a growing economy and high consumer confidence; this is also shown in a low unemployment rate, decreasing vacancies in commercial properties around the city and the increasing collection of sales tax. We also expect military employment to continue to increase at Fort Carson and Peterson Schriever Air Force Bases (according to Tatiana Bailey, Director of UCCS Economic Forum).
With this growth, our cost of living is increasing; however, it is still lower than surrounding areas so we are continuing to see buyers from Denver and other high priced areas looking for cheaper housing and cost of living in general. The rising cost of renting is a good thing for our investors, property owners and sellers. Interest rates are starting to rise but are still low enough that it hasn’t slowed the market much. While we did see a few minor dips in the rental market overall it remains strong. This is evident by the new apartment projects coming online in the near future. Single Family homes are also popping up more and more. The amount of new construction is not alarming; it just shows the growth we are experiencing.
While the rising interest rates have slowed buyers down a little, we are still seeing homes go on the market and sell relatively quickly. The number of active listings in the Colorado Springs area has decreased each of the last three years and the number of homes sold has steadily increased for the same years driving prices up. We are expecting home prices to continue to increase. It is important to note that with all of this talk of growth and increase, we believe that we are still on a sustainable path; these are the results of a strong economy.
This month, Mary will be attending an economic update given by Tatiana Bailey, Director or UCCS Economic Forum, and we’ll post her takeaways in an update on the blog soon!