What is the housing market in Colorado Springs like at the moment? Is this a good time to buy a home in this part of the USA? If you have been thinking of buying a house in Colorado Springs but have struggled with making a decision, this article will give you the insights you need to make an informed choice.
There are several important things you should know about a location before you buy a home in that area. Some of these questions and considerations are listed below.
Questions to ask before investing in any housing market
1. What makes this a good location?
Is this location good because of its current qualities or are changes likely to happen in the future? Are there major employers in the area? How diverse are the industries in the location? What is the quality of the physical infrastructure and social amenities?
2. How much do the homes in the area cost?
Compared to other locations, are the homes in the area expensive or reasonably priced? What forces are driving the value of homes in this location and are they sustainable? What are the chances that home prices in this area will fall, rise, or remain stable?
3. Can I expect to make any money on the home?
If this is a rental property, do the rental rates in this place justify the investment? Can I charge enough rent to cover my costs and still make a profit? Or how quickly can I expect the property’s value to appreciate?
4. Compared to other locations is this a good location to buy in?
How does this location measure up against other locations? Based on each location’s attractiveness, property prices, and potential profits, is this still a good location?
Why Colorado Springs is a good location
Using the above as a guideline, we will explain what makes the Colorado Springs housing market one of the best places in the USA to buy a home right now.
Well before the Coronavirus pandemic, the housing market in Colorado Springs was booming and on the verge of breaking all previous sales records. In the years before 2019, there was (and continues to be) a constant influx of new residents into the city.
Together with unprecedented job growth, this has led to massive increases in the values of Colorado Springs’ homes. Knowing that the housing market trends in this location predate COVID-19 will help you in your decision-making.
Here is what is happening in Colorado Springs.
1. Surging population growth
Colorado Springs’ population places it 39th on the list of most populous US cities; the city has never been large, population-wise. But over the last seven years, there’s been a massive influx of people and this is projected to continue until the year 2037. Two reasons for this growth are the growing tendency to prefer suburban areas to urban areas and the rising cost of homes in the nearby city of Denver.
2. A strong economy
In spite of its relatively small size, Colorado Springs has one of the most thriving economies in the USA. In the face of economic downturns in other parts of the country, the city managed to sustain job growth for many years and this has not been significantly altered by the pandemic. As a matter of fact, due to strong economic foundations, the city is expected to recover faster than most US cities.
3. Low housing inventory and strong demand
For several years running, the rate at which new houses were added to the housing stock has lagged behind the rate at which new residents arrived in Colorado Springs. The result has been a high demand for new housing with sharp increases in the value of existing homes.
At any time in Colorado Springs, there are more people trying to buy homes than there are houses to buy. In October of 2020, there were only 881 single-family homes available for sale in the entire city.
4. A large population of renters
If you are looking to buy an income property, you will be happy to learn that renters make up 41% of the population in Colorado Springs. This makes it a promising market for long-term rental homes. Additionally, people in the city prefer to rent than to buy their homes since renting is more affordable. Rental property owners will not have problems finding quality occupants for their properties.
The factors driving the real estate boom in Colorado Springs are the reasons to believe that now is a good time to buy a home in this location. This sign suggests that home prices are not likely to revert downwards anytime soon. As a matter of fact, given the economic profile of the city, the rate of migration, and the shortage of new housing, prices are likely to go even higher.
The bottom line is that the best time to get into Colorado Springs’ housing market was yesterday and the next best time is today. If you plan on waiting until prices come down, your wait may be endless. Moreover, the very low mortgage rates available right now make this an even better time to invest in a Colorado Springs home.
- Bighorn Rentals