During much of 2018, the Colorado Springs housing market ranked among the top in the country because of the strong demand and rising property prices. Next year, it could be the #1 market to watch, according to Trulia’s Top 10 Markets and Neighborhoods to Watch in 2019 report.
In this blog post, we present our Colorado Springs housing market forecast as well as list the top neighborhoods in the city for real estate investors to buy rental properties according to predictive analytics from Mashvisor’s Investment Property Calculator. So, keep reading to learn why and where to invest in Colorado Springs in 2019.
1) Strong Demand
When considering any real estate market for investment opportunities, the first thing property investors look for is growth. If you find that, you’ve found the right location for your real estate investing business. Colorado Springs is a growing city, with a population of 465,084 and increasing. According to several reports, many people are moving to the city for its reasonably good quality of life alone, as it’s one of the best cities to live in. Other reasons include affordable housing and job opportunities in sectors like healthcare, educational services, and tech services.
Plus, the Colorado Springs housing market has a ratio of 1.7 of inbound vs. outbound searches on Trulia’s website. This is an indicator that more people are interested in moving to the market than those looking to move away. All of this means that the demand for real estate properties is high in the city. Real estate investors know that increasing demand is a good sign to start searching for Colorado Springs investment properties.
2) Affordable Prices
If you’ve been in the real estate investing business for a while, you’d know that high demand pushes up property prices, especially if the supply of inventory isn’t keeping up with this demand. Looking at the current supply and demand situation in Colorado Springs, you’ll see that supply remains tight, leading to a housing market forecast of rising property prices in 2019. As a matter of fact, this is something almost every major city in the US housing market is expecting to see this coming year.
Related: House Price Trends to Expect in the US Real Estate Market 2019
The median home value in the Colorado Springs housing market is currently $282,700 (a 9.4% increase over the past year). Furthermore, Zillow predicts home values will rise 6.3% within the next year. This, however, does not mean that Colorado Springs is unaffordable. On the contrary, home values in the city are still lower than the national average and, according to Trulia’s report, first-time home buyers still stand a chance at buying a home.
Moreover, real estate investors can find affordable investment properties that yield high returns in many areas of the city. For example, using our Property Finder Tool, we located these very affordable properties in the Colorado Springs housing market:
Property 1:
- Listing Price: $94,500
- Traditional Cash on Cash Return: 7%
- Airbnb Cash on Cash Return: 8%
Property 2:
- Listing Price: $146,000
- Traditional Cash on Cash Return: 6%
- Airbnb Cash on Cash Return: 7%
Click here to use the Property Finder Tool and get the full info and analysis on these investment properties and more in the Colorado Springs housing market.
3) Job Growth and Millennials Driving the Market
Colorado Springs enjoys a robust economy thanks to its strong employment growth. In fact, with a 3.3% year over year job growth, the city came in at #8 among the 100 largest US metropolitan areas! This further helped the Colorado Springs housing market rank at the top of the list of markets to watch in Trulia’s report.
In addition, people in Colorado Springs are getting younger, with a large share of the adult population under the age of 35. This indicates that millennials are starting to enter the housing market, representing more potential first-time buyers. Not only that but the Colorado Springs housing market topped our list of the best places to invest in real estate to rent out for the millennial generation!
Interested in learning which other cities made the list? Read this blog post: The Best Cities to Invest in Real Estate to Rent Out to Millennial Tenants
Top Neighborhoods for Traditional Rentals in Colorado Springs
Based on predictive analytics and real estate data from Mashvisor’s Investment Property Calculator, here are the best neighborhoods to consider for a traditional rental property in Colorado Springs. (The livability score is taken from Areavibes.com.)
Learn more about our product.
Briargate
- Median Property Price: $390,141
- Price Per Sq/Ft: $154
- Traditional Rental Income: $1,683
- Cash on Cash Return: 2%
- Livability Score: 72
Falcon
- Median Property Price: $284,909
- Price Per Sq/Ft: $153
- Traditional Rental Income: $1,366
- Cash on Cash Return: 2%
- Livability Score: 64
Southeast Colorado Springs
- Median Property Price: $228,667
- Price Per Sq/Ft: $142
- Traditional Rental Income: $1,147
- Cash on Cash Return: 2%
- Livability Score: 65
Northeast Colorado Springs
- Median Property Price: $330,919
- Price Per Sq/Ft: $154
- Traditional Rental Income: $1,416
- Cash on Cash Return: 2%
- Livability Score: 74
East Colorado Springs
- Median Property Price: $262,872
- Price Per Sq/Ft: $140
- Traditional Rental Income: $1,226
- Cash on Cash Return: 2%
- Livability Score: 68
Powers
- Median Property Price: $336,453
- Price Per Sq/Ft: $138
- Traditional Rental Income: $1,471
- Cash on Cash Return: 2%
- Livability Score: 68
Sign up with Mashvisor and start looking for and analyzing the best investment properties in your neighborhood of choice!
Top Neighborhoods for Airbnb Rentals in Colorado Springs
We can’t forget that Colorado Springs is famous for its nature, hiking parks, and many natural sights that attract an enormous amount of tourists on a yearly basis. Thus, buying an investment property to rent out for short-term tenants on Airbnb is also a great investment strategy in the Colorado Springs housing market. In fact, based on our data, this rental strategy yields higher returns on investment. Here are the best neighborhoods to invest in if you’re considering this type of investment.
East Colorado Springs
- Median Property Price: $262,872
- Price Per Sq/Ft: $140
- Airbnb Rental Income: $2,431
- Cash on Cash Return: 5%
- Livability Score: 68
- Airbnb Occupancy Rate: 51%
Powers
- Median Property Price: $336,453
- Price Per Sq/Ft: $138
- Airbnb Rental Income: $2,819
- Cash on Cash Return: 5%
- Livability Score: 68
- Airbnb Occupancy Rate: 52%
Central Colorado Springs
- Median Property Price: $352,773
- Price Per Sq/Ft: $214
- Airbnb Rental Income: $2,514
- Cash on Cash Return: 4%
- Livability Score: 69
- Airbnb Occupancy Rate: 68%
Northeast Colorado Springs
- Median Property Price: $330,919
- Price Per Sq/Ft: $154
- Airbnb Rental Income: $2,475
- Cash on Cash Return: 4%
- Livability Score: 74
- Airbnb Occupancy Rate: 49%
Southwest Colorado Springs
- Median Property Price: $689,867
- Price Per Sq/Ft: $191
- Airbnb Rental Income: $2,623
- Cash on Cash Return: 4%
- Livability Score: 53
- Airbnb Occupancy Rate: 41%
Southeast Colorado Springs
- Median Property Price: $228,667
- Price Per Sq/Ft: $142
- Airbnb Rental Income: $1,753
- Cash on Cash Return: 3%
- Livability Score: 65
- Airbnb Occupancy Rate: 54%
Note: Make sure to check the short-term rental laws and regulations before you decide to rent out on Airbnb as they differ in each neighborhood!
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
The Bottom Line
This Colorado Springs housing market forecast proves that owning a rental property in the city in 2019 makes for a profitable and smart investment decision. Thus, if you’re a real estate investor wondering where your next investment should be, you can put Colorado Springs on the list of cities to consider looking further into. You can count on Mashvisor to find, analyze, and compare properties in the city of your choice to start making money in real estate. Just click here to start your 14-day free trial and subscribe to our services with a 20% discount after!
