Yesterday I attended the annual UCCS Colorado Springs Economic Forum led by Tim Quinlan, Director & Sr. Economist with Wells Fargo Securities and Dr. Tatiana Bailey, Director of the UCCS Economic Forum. Tim spoke to the broader outlook for the US and Tatiana focused on Colorado and more specifically Colorado Springs. Last year Tatiana was predicting a slight recession at the end of 2019 and has revised her outlook to be extremely positive for our growing city. We have had significant growth in the higher wage categories of technology and healthcare with our new median salary beating out Denver at $73,125 for those categories. Employment is strong, population growth projections are huge, yet our housing affordability index remains one of the best in the nation (even after an 11% housing price increase since 2017). Our mayor, John Suthers, also spoke and we are making some good strides in addressing homeless issues (city council just allocated an additional $500,000 to the Springs Rescue Mission and Salvation army), and they are actively working to increase our funding for fire fighters and police. Vacancy rates remain low and the rental market is projected to stay extremely strong. Our population stood at 674,933 in El Paso County in 2015 and is projected to grow to 1,083,676 by 2050. Great news for those of us fortunate enough to live and work in the Pikes Peak Region!
Great info. Thanks for sharing. This puts numbers behind the gut feeling we've been having about Colorado Springs for awhile -- that it's on an upward trajectory.
My gut has been led by the businesses I see coming into the downtown, the increase in foot traffic down there, the boxy modern-looking apartment complexes going up that we've seen in Denver for years now. It just has the "feel" of a city on the up.
Anyway, great stats.
@Robin Searle I'm just getting started in REI and have been looking at keeping my investments close to home in Colorado. Colorado Springs is definitely on my radar for picking up some deals in strategic locations for both cash-flow and appreciation with some of the planned redevelopment going to happen in the city. Exciting times!
@Andrew B. Definitely positive outlook for the Springs. Let me know if I can help in any way! Always available to chat!
Things are definitely looking rosy right now in the Springs. As @Robin Searle noted, virtually all the stats are good and getting better. We're even seeing Denver home-shoppers and investors buying in our northern neighborhoods, contributing to the net out-migration that is being reported for Denver based on the cost of housing there.
However, I am seeing a large number of price reductions being reported in the MLS lately. With the 1% per month appreciation we're seeing and the very short time on market, I think some sellers got over-confident about what the market will bear and have found out there is a limit to what people are willing to pay.
Les, you are right, here is a chart I found that maps house sales in colorado springs through september of this year. We seem to be just hitting the winter months and the appreciation from the summer is slowing down like the past 5 years. Latest sales are on the left side of the plot.
That's great news. I also read an article this morning listing Denver as the 8th best city for Tech and Colorado Springs as the 20th best city for tech (with an average tech salary fo $90K for both cities.) That's extremely promising in Colorado Springs as a salary at that level can get you into a nice place.
I lived there in the mid-90s and loved it but was happy to get away from the crowds. I'm not surprised to see it growing and I don't need an expert to tell me it's a great location for continued growth.
I'll be flying into Colorado Jan 30th, 2019 and exploring the Colorado Springs area. Heard so many nice things about the city, it be great to find a solid investment for a hold position. Any recommendations by all means please don't be shy and send them over.
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