I grew up in Colorado Springs, but when I meet strangers, I like to qualify my roots by saying that I live in Denver now and it’s a better fit for me. Wink. Wink. Nod. Nod. And to my family who still live there, I’ve enjoyed referring to it as Denver’s Less-Attractive Little Sister and/or Crazy Town. And that about sums up everything I’ve ever thought about Colorado Springs until 2016-ish. And in 2016, I started saying confusing things like, “It’s probably smart to buy in Colorado Springs.” And by 2018, I said something even more confusing, which was, “I bought in Colorado Springs.” And to my investors: “We should look in Colorado Springs.”
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I’m not the only one who has experienced this shift in feelings. A lot of people are into Denver’s Less Attractive Little Sister now. So, let’s talk about why, and how, Colorado Springs has finally matured into the Real Estate Prom Queen we never thought she could be.
Related: Best Places to Invest in Real Estate: An Analysis of 6 Cities
1. Denver
Everyone loves Denver, but not everyone can afford it. Consequently, a lot of people have moved south and commute north. Some have just built lives in Colorado Springs, where the prices remain a little lower (for now).
2. Millennials
According to this article, millennials are moving to Colorado Springs at a faster rater than they are moving anywhere else. Whatttt? I know. Weird. I think this influx is related to millennials being priced out of Denver, but then being pleasantly surprised by the housing costs, job opportunities, and quality of life that Colorado Springs offers.
3. Culture
For the past 30 years, Colorado Springs has been widely known for its military bases, fundamentalist church scene, and its intensely conservative politics. As that scene isn’t for evryone, the population has remained depressed. But with the onslaught of Denverites and millennials, the city is starting to feel a lot different and a lot more relaxed.
4. Year-Over-Year Rent Increases of 7 Percent
Colorado Springs rent have increased 7 percent between 2017 and 2018. And that’s attractive if you’re an investor.
5. Neighborhoods Close to Downtown Have Appreciated by as Much as 60 Percent
That’s over 5 years, but again, very attractive to an investor.
6. Airbnb Laws
Colorado Springs is in the process of changing some of its Airbnb laws. But currently, there are no limits on what you can buy and rent out Airbnb. Compared to Denver, where you are limited by law to Airbnbing only your primary residence, this is a very attractive thing. Colorado Springs does not appear to be heading that way, but they are implementing some restrictions. (Email me if you want details on that.)
Related: Top Real Estate markets to invest in through 2020
7. Colleges
Colorado Springs has three major colleges in the city and is adding a satellite location to its downtown. This build suggests a surge in the millennial demographic, and it also suggests the downtown might soon see a further influx of business and spending.
8. A New Sports Stadium
There is currently a proposal for a 10,000 seat sporting venue in Colorado Springs. There have been some issues with this (location), but if that goes through, it’s reasonable to think additional jobs and money will also come in.
9. Athletes
The Olympic Training Center is in Colorado Springs… but more importantly, athletes love Colorado Springs. It is increasingly competing with Boulder as a top place to be for elite athletes to train, at altitude, in a beautiful place.
10. It’s Ludicrously Beautiful
It just is. Face west standing on Kiowa street — east of downtown — and tell me it’s not just stunning.
And that’s a wrap. We buy and sell properties in Colorado Springs (40 percent of our client set is based in Colorado Springs), so if you have questions, please reach out to me and I’ll be happy to discuss.
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