Why Colorado Springs Homes Are Selling — Or Sitting — Right Now (2026 Market Analysis)
By Realtor Ben Townsend, Housing Market Analyst | Updated February 2026
The Colorado Springs housing market isn’t crashing. It isn’t booming either. It’s resetting.
After reviewing data from Colorado Public Radio, KOAA News, ColoradoBiz, Denver Gazette, HUD, FRED (St. Louis Fed), Common Sense Institute, and regional economic reports, a clear pattern has emerged:
Homes are selling — but only when they align with today’s affordability realities.
Market Snapshot: What the Data Shows
- Nearly 4,000 active listings (highest since 2013)
- Median days on market: 54–79 days (FRED data)
- 54% of listings seeing price reductions
- Home price growth under 3%
- 27,000-unit housing shortage reported
- 100+ work hours required monthly to afford median home
This combination creates a split market: some homes sell steadily, while others linger.
Why Homes Are Sitting
1. Affordability Has Hit a Ceiling
While prices remain near record highs, mortgage rates have significantly reduced buying power. Monthly payment sensitivity now drives decisions more than listing price alone.
Buyers are calculating payments carefully. If the payment exceeds local wage capacity, they pause or negotiate aggressively.
2. Inventory Has Rebalanced the Market
Inventory has surged to pre-pandemic levels. Buyers now have options — and leverage. When supply increases without equal demand growth, homes take longer to sell.
3. Economic Uncertainty Is Influencing Buyer Behavior
Statewide economic slowdown concerns, modest job growth, and national deal fallout trends are making buyers more cautious. Fewer waived inspections. More appraisal protections. More contract cancellations.
4. Overpricing Based on 2022 Comparables
Sellers pricing based on peak pandemic comps are experiencing longer days on market. Today’s buyers are payment-focused, not emotion-driven.
5. Rental Market Cooling
New multifamily construction and vast new home owner regulations have softened rental conditions. When rent stabilizes, urgency to buy declines — particularly among first-time buyers.
Why Homes Are Still Selling
1. Correctly Priced Homes Move
Move-in ready homes priced within current affordability bands continue to sell steadily.
2. Military & Government Stability
Colorado Springs’ strong military presence provides consistent housing demand. Relocations continue, supporting steady — though not frenzied — transactions.
3. Long-Term Structural Housing Shortage
Despite rising inventory, the region still faces a significant housing deficit. HUD projects demand for thousands of additional sales units in the coming years. This prevents dramatic price collapses.
This Is a “Normalization Market”
The data shows we are not in a crash. We are not in a boom. We are in a recalibration phase.
| Homes That Sell | Homes That Sit |
|---|---|
| Priced for today’s payment reality | Priced for 2022 peak comps |
| Move-in ready | Require updates without discount |
| Under local affordability thresholds | Above local wage capacity |
| Located near strong employment zones | Overpriced high-end properties |
Expert Market Interpretation
Colorado Springs is experiencing what economists call a “supply reset.” Inventory has normalized, buyer leverage has returned, and price growth has slowed to sustainable levels.
This is what a healthy — though affordability-constrained — market looks like after a historic surge.
Homes are sitting not because there is no demand — but because demand has become selective and payment-sensitive.
Sources & Data Referenced
- Colorado Public Radio
- KOAA News
- ColoradoBiz Magazine
- Denver Gazette
- HUD User Reports
- FRED (St. Louis Federal Reserve Housing Data)
- Common Sense Institute Housing Affordability Report
- Trading Economics Housing Inventory Data
About the Author
Benjamin Townsend is a Colorado-based housing market analyst since 1998, specializing in Front Range real estate trends, supply-demand dynamics, and affordability research. This analysis synthesizes independent news reporting, federal housing data, and regional economic indicators to provide objective, data-driven insights. For data regaurding your specific property contact Benjamin Townsend today.
