Colorado Springs, once one of the most sought-after housing markets in the country, is undergoing a dramatic shift.
Thousands of residents are now listing their homes — many worth over $1 million — as both residential and commercial real estate sectors face a reset.
‘There is a cloud of uncertainty,’ Patrick Kerscher, general manager for Norwood Development Group, told The Gazette.
‘We’ve got interest rates that are double or more than what they were three years ago, and they’ve stayed there. You’ve got elections. You’ve got international conflicts.’
The shift is evident in the numbers. As of March 2025, Colorado Springs had more than 7,100 active home listings, according to a Realtor.com market report.
Homes are now sitting on the market for an average of 75 days, a significant increase from the frenzied pace seen during the pandemic boom.
The median listing price rose slightly from $458,000 in December 2024 to $474,000 in March 2025, but price cuts are becoming increasingly common as inventory swells.
According to Fast Company, Colorado Springs is one of 58 metro areas nationwide where housing inventory has surged, giving homebuyers more leverage than they’ve had in years.
Colorado Springs, once one of the most sought-after housing markets in the country, is undergoing a dramatic shift
Thousands of residents are now listing their homes—many worth over $1 million—as both residential and commercial real estate sectors face a reset. This house is on the market for nearly $1.4 million.
The shift is evident in the numbers. As of March 2025, Colorado Springs had over 7,100 active home listings, according to a Realtor.com market report. This house is on the market for $800,000.
The report notes that the city’s housing supply is now 58 percent more than pre-pandemic levels, tipping the scales in favor of buyers after years of bidding wars.
‘This is a completely different market than it was even two years ago,’ said Ryan Tefertiller, the city’s urban planning manager, in an interview with The Gazette.
‘There’s a sense that we’re shifting out of that rapid expansion mode. We’re not necessarily contracting — but we’re no longer sprinting either.’
During the pandemic, a wave of out-of-state buyers — particularly from California and Texas — flocked to Colorado Springs, pushing home prices to record highs.
But with mortgage rates hovering near 7 percent, the market is cooling. Locals, already grappling with affordability, are taking a step back.
‘People are definitely more cautious now,’ veteran realtor Amy Williams told The Gazette. ‘A lot of sellers are chasing the prices of 2021, but buyers are simply not willing to overpay anymore. They know they have options.’
Despite the slowdown, Realtor.com recently named Colorado Springs one of its Top 10 Housing Markets for 2025, projecting a 27.1 percent increase in existing-home sales for the year.
A key reason is the city’s strong military population — roughly one in three households includes a veteran or active-duty service member.
Homes are now sitting on the market for an average of 75 days, a significant increase from the frenzied pace seen during the pandemic boom
The median listing price rose slightly from $458,000 in December 2024 to $474,000 in March 2025, but price cuts are becoming increasingly common as inventory swells. This house is on the market for $1.2 million.
With many buyers relying on VA and FHA loans, which offer more favorable terms than conventional mortgages, demand remains somewhat insulated from rising rates.
‘In a lot of ways, Colorado Springs is still a very stable market,’ Williams said. ‘We’re not in a bubble that’s about to pop. But we are in a period of recalibration.’
The commercial sector is seeing similar caution. While some new projects are underway, uncertainty has slowed major decision-making.
‘Any time you’re facing a long-term decision, a long-term commitment, uncertainty creates inaction,’ Kerscher said. ‘We’re going to have some lumps to take over the next year.’
Tefertiller added that the city is exploring mixed-use developments as a way to reimagine older commercial spaces that no longer fit the needs of a post-pandemic workforce.
‘We’re seeing more projects that combine housing, office, and retail,’ he told The Gazette. ‘The demand is still there — it’s just changing shape.’
As home listings climb and commercial tenants pause on commitments, Colorado Springs is entering a new phase — still attractive, but no longer immune to broader market forces.
‘People still want to live here,’ Kerscher said. ‘We’re not losing that appeal. But when the cost of doing business and the cost of living both keep rising, people start to get selective.’
