There are so many studies and surveys that rank cities, and Colorado Springs always seems to be pretty high on the lists. This particular list is interesting however, in that it is a list of the Best Housing Markets for Investors. This ties into a discussion some of us agents were having yesterday about renting vs buying in Colorado Springs.
My take since I first got into real estate here almost 20 years ago, is that the cost of owning a home in Colorado Springs is very low relative to rental rates, at least up to around $250,000 (or so). That is because the military presence here tends to create a steady of flow of people who aren’t 100% sure how long they will be stationed here, who as a result, are logical renters. The price point tends to cap based on the housing allowance tables the government uses, and actually fluctuates some with interest rates. The lower the interest rate, the higher a given amount will stretch to buy vs rent a home. While landlords can adjust rents based on market conditions, realistically, most want to cover cash flow, and have loans in place, usually at higher rates than at least our current market (4.25%!).
The Forbes article is also interesting, because it puts some weight on the population growth component. With the Iraq war winding down, many of our troops from Ft Carson should be coming home for longer stays, which should result in population growth going forward.
I like it when Colorado Springs places well on these surveys. In this case, I would even tend to agree with their assessment. Buying (ie investing) in Colorado Springs homes does make sense right now!