Economic Outlook
The Pikes Peak Region continues to stand out as a resilient and prosperous market, supported by high median household incomes and a well-educated workforce. While overall growth has moderated, the economy as a whole, has remained stable and employment continues to expand.
The UCCS Economic Forum reports that higher interest in recent months, which is contributing to a slower housing market, but one that will be balanced and sustainable. Sales and use tax revenues in Colorado Springs paused during this adjustment phase, reflecting a normalization following years of rapid expansion rather than a weakening of underlying economic strength.
Home Prices And Affordability
After a period of rapid appreciation from 2020 through mid-2022, the median sale price of a single-family home is the region remained stable through the Summer of 2025. While the June 2025 median price of $500,000 represented a new all-time high, it was only 1% higher than June 2022 level, underscoring that home values have largely leveled off.
Although higher mortgage rates temporarily increased affordability pressures, conditions have gradually informed and the outlook for 2026 is that rates will come down a bit more and stabilize, according to the National Association of REALTORS. While home prices in the Pikes Peak Region remain above the national average, strong median incomes will keep overall affordability generally in line with national norms.
Home Sales and Market Activity
Elevated mortgage rates also affected sales with annual transactions easing from a peak of 18,172 in 2021 to 11,510 in 2024. In early 2025, the market showed signs of renewed momentum with sales in the first half of the year running ahead of the previous year’s pace, but the market tended to be unpredictable in all price ranges.
Inventory levels improved, giving buyers more choices, which also contributed to a move toward a more balanced market. Active listings reached 4,055 in June 2025 – up 36.3% from June 2024, according to the Pikes Peak Association of REALTORS.