Colorado Springs Real Estate Outlook 2026: Incoming Jobs Are Fueling Steady Demand, Why Waiting Could Mean Missing the Window

Good morning! As we turn the page to 2026, Colorado Springs stands out as one of Colorado's most resilient markets, largely thanks to a robust influx of high-paying jobs in aerospace, defense, and related sectors. While many buyers remain sidelined hoping for lower rates or more inventory, the steady stream of new employment opportunities is poised to keep housing demand strong. Delaying could mean facing renewed competition and higher prices as these jobs bring more residents to the Pikes Peak region. Here's a data-driven look ahead, drawing from state economic reports, industry announcements, and housing forecasts.

The Job Boom: Aerospace and Defense Driving GrowthColorado Springs' economy is heavily anchored in aerospace and defense, a sector that contributes significantly to local GDP and employment. Recent expansions are adding hundreds—and potentially thousands—of high-wage jobs, attracting professionals and families who need housing.

ITS, LLC Expansion: The company is adding 500 new jobs in IT engineering, cybersecurity, and technology solutions for aerospace and defense, with average salaries well above regional medians.
Boecore Expansion: This aerospace and defense engineering firm is bringing over 600 new positions, focusing on software, systems engineering, and cybersecurity.
Broader Sector Momentum: Companies like Bluestaq, The Aerospace Corporation, Caliola Engineering, Trace3 Gov, and Northrop Grumman have announced expansions totaling hundreds of additional rolesand millions in investment. State incentives have supported projects potentially creating thousands more jobs across aerospace and defense.

These roles often pay $130,000+ annually, boosting purchasing power and demand in established and emerging neighborhoods. With U.S. Space Command solidified in Colorado Springs and contributing to a thriving ecosystem, the sector's stability makes the area "recession-resistant" compared to other markets.Statewide, Colorado expects modest job growth of about 0.6% in 2026 (adding ~17,500 jobs), but Colorado Springs' focus on defense and tech positions it for stronger local gains.

buyers hold out for lower mortgage rates

Mortgage Rates: The 6% Range as the New RealityExperts don't anticipate a return to sub-5% rates soon. Fannie Mae projects 30-year fixed rates ending 2026 around 5.9-6.0%, while the Mortgage Bankers Association sees them holding in the 6.3-6.4% range. This stabilization could lure sidelined buyers back, increasing competition without dramatic affordability gains.Insight: Acting now, while rates are in the low-to-mid 6s and inventory offers choices, allows buyers to secure a home and refinance later if rates dip further.

the ongoing influx of well-paid professionals

Inventory and Prices: Balanced Market with Upward Pressure AheadInventory has improved, giving buyers more options and longer market times (around 40-50+ days). However, the ongoing "lock-in effect" and strong job-driven demand limit explosive supply growth. Forecasts point to modest price appreciation of 1-3% in 2026, with some areas seeing more due to economic drivers.As new jobs fill and population grows (projected metro area nearing 716,000 by 2026), expect demand to firm up, potentially reducing buyer leverage by spring.

The Verdict: Job Growth Makes 2026 a Year for Decisive ActionThe influx of high-quality jobs in aerospace and defense isn't slowing—it's a key reason Colorado Springs remains attractive and resilient. Waiting for perfect conditions risks competing with incoming workers for limited homes, pushing prices higher and offsetting any rate savings.2026 favors buyers who move strategically now: More selection today, steady appreciation ahead, and the backing of a growing economy.For more insights: