🏡 Can You Still Afford to Buy a Home in Colorado Springs? The Truth About Today’s Housing Market

By Casey Fortune | Broker/Owner | Fortune Realty

If you’ve been looking at homes lately, you’ve probably experienced a little sticker shock.

Home prices remain near record highs. Mortgage rates are much higher than they were just a few years ago. Every time you turn on the news, someone seems to be saying it’s the worst time ever to buy a home.

So what should you believe?

The reality is a little more complicated.

Let’s take a look at what’s really happening—and why many buyers are still purchasing homes despite today’s higher interest rates.

📊 Why Buying a Home Feels So Much Harder Today

Today, housing experts estimate that many households need an annual income of approximately $120,000 to comfortably afford the average home.

Meanwhile, the median household income in the United States is closer to $80,000.

That affordability gap has become one of the biggest reasons many families feel homeownership is slipping further away.

📈 Monthly Housing Costs Have Nearly Doubled

Just a few years ago, many buyers were purchasing homes with mortgage payments around $1,200 per month.

Today, those same payments can easily exceed $2,500, largely due to higher home prices and higher mortgage rates.

Why Aren’t Home Prices Falling?

This is probably the question I’m asked most often.

“If homes are becoming unaffordable, why haven’t prices dropped?”

The answer comes down to inventory.

Millions of homeowners locked in mortgage rates near 3% during 2020 and 2021.

Today, selling their home often means giving up that historically low payment and purchasing another home with a much higher interest rate.

Economists call this the Rate Lock Effect.

🏠 Millions of homeowners have 3% mortgages
               ↓
They don't want to sell
               ↓
Very few homes hit the market
               ↓
Inventory stays low
               ↓
Prices remain elevated

As long as inventory remains limited, prices are likely to stay relatively strong.

📉 Homes Cost More Relative to Income Than Ever

Historically, homes sold for roughly three times the average household income.

Today, that number has climbed to more than five times income, making it significantly more difficult for first-time buyers to enter the market.

First-Time Buyers Are Feeling the Biggest Impact

Buying your first home has never been easy.

But today’s buyers face challenges previous generations simply didn’t experience.

Many younger buyers are delaying homeownership because of:

• Student loan debt
• Rising home prices
• Higher mortgage rates
• Increasing insurance premiums
• Property taxes
• Higher utility costs

The average first-time homebuyer is now around 40 years old, the highest on record.

It’s Not Just the Mortgage Payment

Many buyers focus only on the principal and interest payment.

But homeownership today also includes:

✔ Homeowners insurance

✔ Property taxes

✔ Utilities

✔ HOA dues

✔ Maintenance and repairs

These costs should all be considered when determining your budget.

Here’s the Good News…

Despite affordability challenges, buyers are beginning to regain negotiating power.

Today’s market offers opportunities we haven’t seen in years.

Buyers may now be able to negotiate:

• Closing cost assistance
• Interest rate buy-downs
• Builder incentives
• Appliance packages
• Home warranties
• Repair requests

Many builders are also offering special financing programs that can significantly reduce monthly payments for qualified buyers.

✅ Could You Still Be Ready to Buy?

Ask yourself these questions:

• Do you have stable employment?
• Have you saved a down payment?
• Is your credit in good shape?
• Do you plan on staying in the home for at least five years?
• Can you comfortably afford the monthly payment?

If you answered “yes” to most of these questions, buying a home may still make financial sense.

Why Colorado Springs Continues to Attract Buyers

Despite higher mortgage rates, Colorado Springs remains one of the fastest-growing housing markets in the country.

People continue moving here because of:

🏔 Incredible mountain views

☀ Over 300 days of sunshine

🥾 Endless hiking and outdoor recreation

💼 Strong military and technology job markets

🎓 Great schools

❤️ An exceptional quality of life

Demand continues to remain strong because people genuinely want to live here.

Should You Wait?

One of the biggest mistakes I see buyers make is trying to perfectly time the market.

The truth is…

Nobody knows exactly where interest rates or home prices will be six months from now.

Instead of asking:

“Should I wait?”

Ask:

“Does buying make sense for my family today?”

If the answer is yes, remember…

You can often refinance your mortgage later.

You can’t go back and buy today’s home at yesterday’s price.

Frequently Asked Questions

Is now a good time to buy a home in Colorado Springs?

That depends on your financial situation, but today’s buyers generally have more negotiating power than they did during the highly competitive markets of 2021 and 2022.

Will mortgage rates come down?

No one knows for certain. If rates decline in the future, many homeowners may choose to refinance.

Should I wait for home prices to drop?

Trying to time the market is difficult. Focus on your finances, your goals, and whether the monthly payment fits your budget.

Can I qualify for a mortgage?

A trusted lender can review your income, debt, credit score, and down payment to help determine a realistic price range.

📚 Continue Your Colorado Springs Home Buying Journey

If you found this article helpful, here are a few more resources that buyers and people relocating to Colorado Springs enjoy.

🏡 Best Areas to Live in Colorado Springs by Lifestyle
Whether you’re looking for mountain views, top-rated schools, luxury communities, or family-friendly neighborhoods, this guide can help you find the perfect fit.

👉 Read More

🏔 The Best Luxury Neighborhoods in Colorado Springs
Explore Flying Horse, Flying Horse North, Kissing Camels, Cathedral Pines, and other luxury communities.

👉 Read More

📍 Moving to Colorado Springs? Here’s What Nobody Tells You
Discover the pros, cons, cost of living, traffic, weather, and local tips every relocation buyer should know.

👉 Read More

🏠 Monument vs. Castle Rock: Which Is Right for You?
Compare schools, housing, commute times, lifestyle, and home prices before making your move.

👉 Read More

🎥 Best Master-Planned Neighborhoods in Colorado Springs
Take a closer look at Monument’s premier communities and discover why so many buyers are relocating to the area.

👉 Read More

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🎥 Want Even More Local Insights?

Buying a home is one of the biggest financial decisions you’ll ever make.

That’s why I created my YouTube channel:

Living in Colorado Springs With Casey

Whether you’re moving next month or simply planning for the future, my goal is to help you make informed decisions with honest, local advice.

👉 Subscribe to my YouTube channel and explore more Colorado Springs resources at FortuneRealtyColorado.com

📞 Casey Fortune
Broker/Owner | Fortune Realty