Investing in Colorado Springs:
Property ownership has always been thought of as a wise and stable opportunity for investment, and the most experienced professionals continue to tout the three most important guiding principles in real estate: location, location, location. Recently ranked #2 by US News and World Report in their 2022-23 best places to live in the US, Colorado Springs seemingly checks all three boxes. For current property owners and potential buyers, holding onto properties and gaining revenue in rent seems to be the best play in the current market conditions.
Looking at July 2022 data:
Currently 30-year fixed mortgage rates are the highest in years, landing at 5.993 on July 29. July data compared to the previous year shows: Colorado Springs home sales are down 23%, and the inventory of unsold homes is up 161% at 2,605 homes. The average home sale price of $557,250 is up 11.2%, and the median home sale price of $482,500 is up 7.2%. As sales drop and inventories increase, the market will shift back towards favoring the buyer, and incentivize owners to rent instead of sell.
Colorado Springs rental market data:
The average monthly rent prices in Colorado Springs for 2022 is $1,535, up from $1,029 in 2017. In February 2022, the average rent for apartments was $1,465 (up 13% from the previous year). The average rent for houses is $2,280. Renters takes up 41% of Colorado Springs real estate units, occupying roughly 74,000 of 181,000 total housing units. Evictions in El Paso County (2,964 in 2022) continue to drop (down from 6,345 in 2019 and 4,027 in 2021).
Summing up the data:
With the home sale prices falling and mortgage rates rising, the once prosperous sellers-market has now shifted to a buyers-market. This bolsters rentals, as owners hold onto property instead of selling. As a top destination in the country to live with a low and decreasing rental eviction rate, Colorado Springs provides property owners a tremendous opportunity to gain a consistent stream of rental revenue on investment. With this opportunity, Progressive Property Group is the team needed to ensure rental property investment success.
