I wanted to see what everyone's thoughts were on Colorado Springs vs Fountain CO regarding medium to long-term buy and holds for single-family homes. Would these locations be classified as the same market, or are they distinct? Is the Fountain market showing similar returns as CO Springs? Does it rank the same in terms of competition on the acquisition-side as the Springs? Thank you in advance!
Prices and rents are typically lower in the Fountain / Security area, they are not the same market as the nearby Colorado Springs. It is an easy area to attract renters from Ft Carson.
There are pros and cons to both areas but overall both these town have begun to grow into one another and you may drive from one to other without realizing it.
Overall most people like to move to bigger cities where there are more amenities, restaurants, and things to do. With that said, those things drive the prices of homes in Colorado Springs up compared to Fountain. Looking at prices, you can definitely expect to get more house for your money in Fountain. People can expect the same for rent. Rent is going to be on average higher in the Colorado Springs area. Can you get a better ROI in Fountain compared to CS? Most likely, simply because the cost of property is less, and even though rent is less too, the ROI percentage number work out a little better, but it's not going to be an astronomical difference. You may also expect to see higher vacancy rates in Fountain simply because there is more of a draw to the CS area for people.
Keep in mind that everything I just said is very generalized. There are good and bad parts of CS like there are good and bad parts of Fountain where ROI's, tenant quality, rents, etc. are going to vary quite a bit, even within the more localized market of both cities.
Feel free to reach out if you have additional questions.
@Jennifer B. I believe they are served by the same MLS. That says it all for me. It's a bit like asking if returns are better in Castle Rock or Littleton. Each has neighborhoods within them that are as different or more so than the communities as a whole differ.
I think an increase in the prices (rent or sales) in Colorado Springs means an increase in prices (rent or sales) in Fountain and vise a versa. So same market. The returns may not match because they are different demographics just like two neighborhoods in the same City offer different returns.
@Jennifer B. - thanks for posting. As you will see from data I just compiled, where it lags in terms of median price and days on market, Fountain makes up for in key areas such as sales price to list price ratio, where it has been at a solid 100% from Jan 2016 - Jan 2017. This correlates nicely to what appears to be a slightly better market for long-term buy and holds, with a 2% higher appreciate rate versus Colorado Springs overall.
Median sales price Jan 2017: $225k, DOM: @20
Jan 2016: $199k, DOM: 29
Sales Price to List Price Ratio Jan 2016 - Jan 2017: 100%
Jan 2017 Median Sales Price: $260k, DOM 17
Jan 2016: $234,900, DOM 32
SP/LP: 2016: 99.3%, 2017: 100%
Hope this helps!
Updated about 2 years ago
To clarify, "Fountain" is the Fountain Valley area of the PPMLS, where "Colorado Springs" was comprised of its various sub-areas. To Bill's point, each including Fountain will have nuance. Again, these is an overall perspective.
Thanks everyone, this was all very helpful info!
I would have to agree with what everyone is saying. I own a home just south of the airport and I'm looking to invest into the fountain area myself. I think it's a good time to buy in the fountain area because it's slowly being more developed. I've lived around the security widefield area for six years now and I've noticed more amenities being built in this location. Definitely get more home for your buck and unless something drastic happens I believe the value of homes will only increase in that area for the foreseeable future.
Does anyone know a good property management team for Pueblo, CO?
It looks like the fountain market is following the springs market and demand is pretty high right now. I am closing on a rental property now. Anyone else know the local market down in Fountain?
It does follow the springs, It will always be lower than the springs. as long as you can cash flow and the numbers work for you, do it!
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