Colorado Springs’ popularity one part of rising home prices

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COLORADO SPRINGS – Homeowners know it and prospective home buyers feel it—home prices have surged in Colorado Springs over the past year.

Numbers from June report a 21 percent increase, to an average of over $503,000 for a home in Colorado Springs.

Ph.D. Economist and Director of the Economic Forum at the University of Colorado-Colorado Springs Tatiana Bailey says that’s in part to the lifestyle that the area provides.

“People are saying, ‘ Yeah, I can work hard, but I can play hard too and that’s a huge advantage for us,” Bailey said. “Millennials, in particular, are being more choosy about where they plant their feet.”

The lifestyle here, Bailey says, can play a strong role in attracting that age of employee.

Charts provided by Bailey showing the increase in younger age groups in El Paso County, relative to the rest of the country

Nationally, younger demographics are projected to have limited, if any, through the next ten years. In El Paso County, however, Millennials, Gen Z, and every age group outside of 50-64 are expected to continue to grow.

That creates a population foundation that will, in all likelihood, lead to a continued rise in home prices, according to Bailey.

The attraction to Colorado Springs also grew stronger during the pandemic that spurred a movement for people to work from home and many found they can continue to use the home office in the future.

“Especially with it being the high-skilled earner, they can afford to pay the $503,000 average home price,” Bailey said.

There is more of a place in Colorado Springs for high-skilled workers now too. Industries that have typically centered themselves in the Denver-Boulder metro area have started to sprout or relocate to Colorado Springs.

“We’re not just hospitality and military anymore,” Bailey said. ” Before, a lot of those high-skilled jobs went to Denver-Boulder because that’s where a lot of them were but, slowly and surely and mostly organically, now it’s happening in Colorado Springs.”

The mobility of the modern worker comes with a risk for a rapidly appreciating area like Colorado Springs. Bailey thinks that some of the people who moved to Colorado Springs will continue to keep an eye on prices, and could consider moving again.

“They’re more willing to get up and leave so I think we need to be especially vigilant about being affordable in our region,” she said.

For people struggling to attain homeownership, the El Paso County TurnKey program is available as well as several programs through the Colorado Housing and Finance Authority

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